Answer: Establish a revocable living trust.
Explanation:
A revocable living trust is a written document that details how an individual assets would be handled after they die. They are used to avoid probate and protect privacy of the trust owner, beneficiary of trust and reduce estate taxes. Assets placed in the beneficiary name are transfered from the owners account or details to theirs.
Answer:
B) $56,750
Explanation:
Direct materials cost $27,500
Direct labor cost$13,000
As manufacturing overhead rate is based on a percentage of direct labor cost so dividing the manufacturing overheads by direct labor costs we get =$1,050,000,/$840,000= 1.25
Multiplying this rate with the actual overheads we get 1.25* 13000 = $16250
The total job cost would be = Direct materials cost+Direct labor cost + budgeted Overheads = $27,500
+$13,000+$16250= $56,750
Answer:
c. The capital gain would be automatically re-invested at NAV if not taken in cash while the purchase of the shares would occur at POP including a sales charge.
Explanation:
An Asset appreciation doesn't in any way complete a breakpoint for a client. The client agreed to buy $50,000 of fund shares under a Letter of Intent to get a lower sales charge. If the customer doesn't deposit the full $50,000, then the sales charge is calculated to a higher percentage, which is based on the customer's purchase. The customer must deposit another $10,000 to complete the breakpoint.
If the customer were to take the capital gains distribution as cash and use that money to buy additional shares to complete the breakpoint, the customer would then have to pay a sales charge, which would be lower because the breakpoint is being completed. The customer must know that if the capital gains distribution were reinvested, it would occur at NAV and there would be no sales charge increase in sales charge. Whether the capital gain is taken as cash or it is reinvested, it is taxable.
