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Ivanshal [37]
3 years ago
7

Paul’s will creates a General Power of Appointment Trust (GPOA) that distributes income to his wife annually for life and gives

his wife a general power of appointment over the assets in the trust. Which of the following statements is true regarding a GPOA Trust? A. The GPOA Trust only qualifies for the unlimited marital deduction if the trustee agrees to make distributions of principal to Paul’s trust. B. The unlimited marital deduction cannot be elected over the property transferred to the trust because Paul’s wife cannot appoint assets to herself, her creditors, or to anyone on her behalf. C. The unlimited marital deduction is not available because Paul’s wife does not have the current right to the assets in the trust. D. The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul’s wife has a general power of appointment over the trust’s assets.
Business
1 answer:
Ivanshal [37]3 years ago
3 0

Answer: D. The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.

Explanation:

General Power of Appointment Trust (GPOA) refers to a power of appointment which is a legally binding provision that's contained in a trust such that the beneficiary possess the authority to alter the beneficiaries of the trust.

In this case, Paul's wife possess the power of appointment to anyone on her behalf. Therefore, The GPOA Trust automatically qualifies for the unlimited marital deduction because Paul's wife has a general power of appointment over the trust's assets.

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Explanation:

A preferred stock is a share of ownership in a public company. It has some qualities of a common stock and some of a bond. The price of a share of both preferred and common stock varies with the earnings of the company. Both trade through brokerage firms.

Bond prices, on the other hand, vary with the company's ability to pay. The difference is that preferred stocks pay an agreed-upon dividend at regular intervals. This quality is similar to that of bonds. Common stocks may pay dividends depending on how profitable the company is. Moreover, Prefered stocks dividend are often higher than the common stock.

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3 years ago
Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the b
castortr0y [4]

Answer:

$184,000

Explanation:

The computation of adjusted cost of goods sold is shown below:-

For computing the adjusted cost of goods sold first we need to find out the cost of goods sold which is here below:-

Cost of goods sold = Beginning inventory of finished goods + Cost of goods manufactured - Ending inventory of finished goods

= $39,000 + $188,000 - $47,000

= $180,000

Adjusted cost of goods sold = Cost of goods sold + Manufacturing overhead cost incurred - Manufacturing overhead cost applied

= $180,000 + $71,000 - $67,00

= $184,000

4 0
3 years ago
Three stocks have share prices of $17, $65, and $35 with total market values of $440 million, $390 million, and $190 million, re
Korolek [52]

A price-weighted index is simply the sum of the members' stock prices divided by the number of members.

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7 0
3 years ago
A company has decided to discontinue a component of its business but, when the reporting period ends, the component has not yet
Ede4ka [16]

Answer:

The amount by which the component's fair value less cost to sell is less than book value and income from operations for the year

Explanation:

Fair value less cost to sell (FVLCS) is the measurement of the value of the ‘net’ economic benefits embedded in a fixed asset that can be one in a case where the asset is been sold. Just like the name refers, it equals the fair value minus the costs that the company will incur in selling the asset such as irrecoverable taxes, delivery and transportation cost , transaction costs and so on. The fair value of the asset is the amount which can be sold to a knowledgeable and willing buyer in an arm’s length of the transaction.

3 0
3 years ago
Read 2 more answers
A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $50
Artyom0805 [142]

Answer:

a. $(8000)

b. Company should choose alternative 1 and make bottles.

Explanation:

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                                Alternative 1             Alternative 2

Purchase Price                  0                       $37                               $(37)

Freight Charges                 0                       $4                                $(4)

Variable cost                    $33                                                          $33

Fixed Cost                        $17                     $17                                  0

Cost per unit                    $50                    $58                              $(8)

Income / (Loss)                 $50,000            $58,000                      $(8,000)

b. The company should choose alternative 1 and make bottles. The buying of bottles will cost company loss of $8,000.

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