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3 years ago

"why are dividends from a mutual insurer not subject to taxation"

1 answer:

8 0

Dividends from a mutual insurer fall under the categories of non-taxable dividend. The dividends are not subjected to tax because they are considered to be a return of premium. It required under the law that the mutual fund insurers must invest over 50% of their capital in tax exempt investments. Due to this fact, mutual insurer dividends are not subjected to tax.

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Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company grante

raketka [301]

Answer:

1. $108 million fair value of award

2. December 31, 2021

($ in millions)

Dr Compensation expenses 54

Cr Paid-in capital—restricted stock 54

December 31, 2022

Dr Compensation expenses54

Cr Paid-in capital—restricted stock 54

Dr Paid-in capital—restricted stock 108

Cr Common stock 18

Cr Paid-in capital—excess of par (remainder) 90

Explanation:

Allied Paper Products, Inc

$6 fair value per share x 18million shares granted

= $108 million fair value of award

2. Journal entries

December 31, 2021

($ in millions)

Dr Compensation expense ($108 million ÷ 2 years) 54

Cr Paid-in capital—restricted stock 54

December 31, 2022

Dr Compensation expense ($108 million ÷ 2 years) 54

Cr Paid-in capital—restricted stock 54

Dr Paid-in capital—restricted stock 108

Cr Common stock (18 million shares x $1 par) 18

Cr Paid-in capital—excess of par (remainder) 90

5 0

3 years ago

In the U.S. political arena, ______________________ may tend to emphasize the virtues of markets and the limitations of governme

fiasKO [112]

Answer:

The correct answer is letter "A": conservatives; liberals.

Explanation:

Two main approaches define how societies could achieve economic and political prosperity. Conservatives are in favor of little government intervention since individuals must be empowered to take responsibility for their own wellness. They are in favor of market economies -price driven by supply and demand.

Liberals, on the other hand, propose the government must intervene to ensure individuals have equal opportunities. Liberals prefer mixed economies which are mixtures of market economies and command economies -the government is the central planner.

8 0

3 years ago

The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current projec

storchak [24]

Answer: template method

Explanation:

The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as template method.

It should be noted that estimating time and cost are vital because it helps schedule work, develop needs of cash flow and show progress of a project.

5 0

3 years ago

An investor buys a $10,000 par, 4.25 percent annual coupon TIPS security with three years to maturity. If inflation every six mo

NeX [460]

Answer:

D. $11,843.37

Explanation:

$principal \times (1+\alpha)^6 \times (1+r_n)$

We will adjust by inflation the principal, and then calculate the interest.

Inflation is 0.025 every six month, and it is compounding interest.

Our rate will be for six month as well. Because TIPs pay interest semianually as well.

$principal \times (1+0.025)^6 \times (1+0.0425/2)$

11,843.36903

3 0

3 years ago

Are there any special fees or interest rates, or both for Chash Advances and Balance Transfers?Explain.

jek_recluse [69]

Transfers Transfer payments.

Specialization Limiting production to fewer goods and services than consumed, perhaps those whose production entails lower opportunity cost.

3 0

3 years ago