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3 years ago

Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation.

Business

1 answer:

Marina CMI [18]3 years ago

3 0

Answer:

A) True

Explanation:

An individual retirement account (IRA) can be regarded as tax-advantaged account which is been used by individuals in saving as well as investing for retirement. individual retirement arrangements is a term that is been used by Internal Revenue Service (IRS) to describe individual retirement accounts as well as annuities which is been used as

personal savings plans having a

tax advantages that can help to save money as regards retirement.

It should be noted that Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation.

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Suppose Latasha comes into a large sum of money and decides to lend it out to earn interest on it. She realizes, however, that e

qwelly [4]

Answer:

moral hazard

Explanation:

Banks reduce the risk of moral hazard when they monitor and supervise how their clients are using the loans and credits made to them.

Some types of credits do not require any type of monitoring or control, e.g. a credit card which a client can use basically however he/she wants to. But other types of credit that are taken for purchasing assets, e.g. a mortgage, must be used by the bank's client to specifically carryout the intended activity.

In economics, moral hazard refers to the tendency that an economic party can engage in unusually risky activities because the capital (money) that they are investing is not theirs and the negative effects of a potential loss will be suffered most by other parties.

5 0

3 years ago

Beaver Company (a multi-product firm) produces 5,000 units of Product X each year. Each unit of Product X sells for $8 and has a

Jlenok [28]

Answer:

C. Decrease by $7,000

Explanation:

Calculation to determine what company's overall operating income would Decrease by

Using this formula

Overall operating income =(Product X units*Contribution margin )-Fixed overhead eliminated

Let plug in the formula

Overall operating income=(5,000 units*$5)-$18,000

Overall operating income=$25,000-$18,000

Overall operating income=$7,000 Decrease

Therefore As a result of discontinuing Product X, the company's overall operating income would:Decrease by $7,000

5 0

3 years ago

On June 1, Greendale Corp. issued $700,000, five-year bonds at 8%, with interest payable annually on May 31. The bonds sold for

elena-14-01-66 [18.8K]

Answer:

$23,709

Explanation:

Data provided in the question:

Amount of bond issued = $700,000

Duration = 5 years

Interest rate = 8%

Selling amount of bond = $728,700

Market rate of interest = 7%

Now,

Interest paid = Amount of bond issued × Interest rate

= $700,000 × 0.08

= $56,000

Interest expense = Amount of bond sold × Market Interest rate

= $728,700 × 0.07

= $51,009

unamortized premium = Selling amount of bond - Amount of bond issued

= $728,700 - $700,000

= $28,700

Amortized amount = Interest paid - Interest expense

= $56,000 - $50,009

= $4,991

Balance of the premiums on bonds payable account immediately following the first interest payment

= unamortized premium - Amortized amount

= $28,700 - $4,991

= $23,709

5 0

3 years ago

Which of the following is the number one method of financing for most new businesses?

Sergeeva-Olga [200]

Previous business sales

8 0

3 years ago

Read 2 more answers

Standard Aluminum Company is planning to lease CNC equipment for its production and finishing departments. Currently, the produc

Rom4ik [11]

Answer: $313,247

Explanation:

Independent lease cost :

Production department = $410,000

Finishing department = $360,000

Joint lease cost = $(410,000 + 360,000) - $100,000 = $670,000

Using the standard alone cost allocation method ;

Finishing department percentage is given by;

Finishing department independent cost ÷ (finishing department independent cost + production department independent cost)

$360,000 ÷ ($360,000 + $410,000)

$360,000 ÷ $770,000

0.4675324467 = 46.75324467%

Therefore, finishing department share of the joint lease cost will be ;

0.4675324467 × $670,000 = $313,246. 73

$313,247

4 0

3 years ago

Read 2 more answers