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loris [4]
3 years ago
9

Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary. Ellie pays $41,000 in premiums

for the policy during her life. When she dies, Jason collects the insurance proceeds of $615,000.
As a result, Jason reports gross income of:______.
Business
1 answer:
Daniel [21]3 years ago
6 0

Answer: $0

Explanation:

Life insurance proceeds are generally considered to be tax exempt in order to ease the burden on the bereaved which means that Jason does not have to report any gross income from receiving this insurance proceeds.

If Jason does not collect all the proceeds at once however, and leaves some or all of it with the insurance company to accumulate interest, he will have to pay taxes on that interest.

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The IRR of the new computer-based order entry system is 22.87%.

<h3>What is the IRR?</h3>

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The cash flow at the beginning of the period = purchase price of the system - reduction in working capital

$545,000 - $96,000 = $449,000

Depreciation expense = (cost of the asset - salvage value) / useful life

($545,000 - 0) / 5 = $109,000

Cash flow each year from year 1 to 5 = (amount saved - depreciation)(1 - taxes) + depreciation

($165,000 - $109,00)(1 - 0.22) + $109,000 = $152,680

Terminal cash flow = Salvage value - (tax x salvage value)

$71,000 - (0.22 x 71,000) = $55,380

IRR can be determined using a financial calculator:

Cash flow in year 0 = $-449,000

Cash flow in year 1 - 4= $152,680

Cash flow in year 5 = $152,680 + $55,380 = 208,060

IRR = 22.87%

To learn more about IRR, please check: brainly.com/question/26484024

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3 0
1 year ago
The____________problem occurs when people fail to join a group because they can get the benefits the group offers without contri
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3 years ago
A salesperson should focus his or her sales resources on only one individual in the buying organization.​
madam [21]

A salesperson should focus his or her sales resources on only one individual in the buying organization.

The statement is false.

Top 5 skills for a career in sales:

  • Confidence - maintaining a positive mind-set.
  • Resilience - communicating with conviction.
  • Active listening - expertise in the customers' desires.
  • Rapport building - promoting your personality.
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The essential duty of a salesperson is selling. This responsibility consists of assembling the prospects, offering and demonstrating the goods, inducing the prospects to shop for, taking orders, and effecting income. a salesman needs to manual the customers in buying the products they want.

<em>Your question is incomplete. Please read below to find the missing content.</em>

A salesperson should focus his or her sales resources on only one individual in the buying organization.

True

False

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2 years ago
Which type of account offers the highest rate of interest? A. regular checking B. money market C. regular savings D. certificate
lina2011 [118]
I would say D.
  
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3 years ago
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