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xeze [42]
3 years ago
5

In 2019, Rashaun (62 years old) retired and planned on immediately receiving distributions (making withdrawals) from his traditi

onal IRA account. The balance of his IRA account is $160,000 (before reducing it for withdrawals/distributions described below). Over the years, Rashaun has contributed $40,000 to the IRA. Of his $40,000 contributions, $30,000 was nondeductible and $10,000 was deductible. Assume Rashaun did not make any contributions to the account during 2019.a. If Rashaun currently withdraws $20,000 from the IRA, how much tax will he be required to pay on the withdrawal if his marginal tax rate is 25 percent?

Business
1 answer:
lubasha [3.4K]3 years ago
3 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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In its first year of operations, Crane Company recognized $29,500 in service revenue, $6,100 of which was on account and still o
Montano1993 [528]

Answer: See explanation

Explanation:

1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.

The first year's net earnings under the cash basis of accounting will be:

Service revenue = $23400

Less: Expenses = $14310

Net income = $9090

The first year's net earnings under the accrual basis of accounting will be:

Service revenue = $29500

Less: Expenses = $15500

Net income = $14000

2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?

It should be noted that the accrual basis of accounting gives decision makers more useful information. This is due to the fact that the decision makers will probably want to know the revenue and the expenses that were incurred for a particular period and every other necessary details.

8 0
2 years ago
a1. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adj
Pavel [41]

Answer:

a1. Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

a2. $24,000

b2. December 31

Dr Wages Expenses $440

Cr Wages payable $440

Explanation:

a1. Preparation of the adjusting entry for the first year using the straight-line depreciation method.

Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

($40,000/5 years)

a2. Computation of the book value at the end of the second year of the equipment's life.

First step is to calculate the First year Book value

First year Book value=$40,000/5 years

First year Book value=$8,000

Second step is to calculate the Second year Book value

Second year Book value=($40,000+$40,000)/5 years

Second year Book value=$80,000/5 years

Second year Book value=$16,000

Now let compute the book value at the end of the second year of the equipment's life.

Book value at the end of the second year=$8,000+$16,000

Book value at the end of the second year=$24,000

Therefore the Book value at the end of the second year will be $24,000

b1. Preparation of the adjusting entry on December 31

December 31

Dr Wages Expenses $440

Cr Wages payable $440

($2,200/5 years)

3 0
3 years ago
How is the market segmented? at what segment should crescent be targeting?
raketka [301]
Markets are segmented as <span>behavioral, demographic, geographic, and psychographic. The crescent should be targeting the geographic segment

Hope this helps :))</span>
6 0
3 years ago
Your family owns a small construction company, CopperBuild, that builds custom homes for an upscale architectural firm. Your two
beks73 [17]

Answer:

All the statements apply

Explanation:

1. Avoid mere mechanical descriptions.

This statement applies because it is an architectural proposal, thus, it should include aesthetic descriptions.

2. Emphasize the benefits to the recipient.

The proposal should include the ways CopperBuild would benefit the investors of the shopping center, from an architectural, and financial point of view.

3. Detail your expertise and accomplishments.

CopperBuild should add a few pages highlighting the firm's past experience, this in order to obtain more credibility.

4. Proposals are sales presentations.

This is a good analogy because what CopperBuild is doing by means of the proposal is selling "itself" (its experience, credibility, prestige) to the investors in order to get the contract.

7 0
3 years ago
Khrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning
zloy xaker [14]

Answer: A.) $32.64 per machine hour

Explanation:

Given the following :

Estimated machine hours = 41,000 machine hours

Estimated variable manufacturing overhead = $4.16 per machine hour

Estimated total fixed manufacturing overhead = $1,167,680

Total Estimated manufacturing overhead :

(Estimated total variable manufacturing overhead + Estimated total fixed manufacturing overhead)

Estimated total variable manufacturing overhead:

$4.16 × estimated hours

= $4.16 × 41,000

= $170560

Total Estimated manufacturing overhead :

$170560 + $1,167,680 = $1338240

Hence,

Predetermined overhead rate :

Total Estimated manufacturing overhead / estimated hours

= $1338240 / 41000

=$32.64

4 0
3 years ago
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