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Vinvika [58]
3 years ago
5

During the year, Juanita has the following income: Gift from her father to help with her student loans $8,500 Interest income on

US Treasury Bond $400 Interest income on the municipal bond issued by the City of Chicago $250 Interest income from her savings account at BMO Bank $165 Life insurance proceeds on the death of her mother $45,000 What is Juanita's gross income for the year
Business
1 answer:
stich3 [128]3 years ago
6 0

Answer:

$565

Explanation:

First of all, the person that receives a gift does not pay taxes for it. Also, proceeds from a life insurance policy are not taxable either. Municipal bonds are not taxed by the federal government.

This means that Juanita's taxable income = $400 interests from Treasury bonds + $165 interests from savings account = $565.

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Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a five-year, $6,000,000 bank loan t
MArishka [77]

Answer:

Ans. The loan payment is $1,582,784.88, therefore is smaller than the lease by $207,215.12

Explanation:

Hi, first we have to find out the amount to pay for the loan every year in order to verify if the loan is cheaper or more expensive than the lease, we have to use the following formula and slove it for "A".

PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

Now, we solve for A

6,000,000=\frac{A((1+0.10)^{5}-1) }{0.10(1+0.10)^{5} }

6,000,000=\frac{0,61051}{0,161051} A

6,000,000=A(3,790786769)

A=1,582,785.88

Now we can see that the lease is more expensive than the loan, this is how to find out for how much.

1,790,000- 1.582.784,88 = 207.215,12

Best of luck.

4 0
4 years ago
zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If
trasher [3.6K]

Answer:

$1,203.83

Explanation:

For computing the present value using the continuous compounding we need to apply the formula and the calculation part is also shown in the spreadsheet. Kindly find it below.

Given that

Face value = $2,600

Interest rate = 11%

Time period = 7 years

The formula is shown below:

= Face value ÷ EXP (Interest rate × Time period)

= $2,600 ÷ EXP (11% × 7)

= $1,203.83

8 0
3 years ago
All of the following distributions of stock dividends are taxable except: a. The shareholders have the choice to receive cash or
kati45 [8]

Answer:

d. The distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders.

Explanation:

This is likely the answer to the question. There is no way preferred stock would be given to some common stock shareholders while common stock to other stock to others.

4 0
4 years ago
Using aggregate supply and demand curves drawn according to the Keynesian view, which of the following will occur if the Fed buy
rewona [7]

Answer:

a. Aggregate demand will shift to the left and unemployment rate will rise

Explanation:

Aggregate demand (AD) is the sum of consumer spending, government spending, investment, and net exports. The AD curve assumes that money supply is fixed. Increased money supply causes reduction in interest rates and further spending and therefore an increase in AD.  <u>On the other hand, decreased money supply causes increase in interest rates and therefore a decrease in Aggregate Demand</u>

<u>Since the FED is buying Bonds it is reducing money supply and hence aggregate demand will fall causing the curve to shift to the left.</u>

Secondly inflation and unemployment has an inverse relationship. More money in the economy is inflation and unemployment level will be low because there will be an increase in wages <u>BUT when the FED reduces money supply by buying bonds, as a means of countering inflation, then unemployment will rise.</u>

6 0
3 years ago
Which C of the four Cs of marketing relates to the place element of the marketing mix?
kompoz [17]

Which C of the four Cs of marketing relates to the place element of the marketing mix? Convenience. When a customer is looking for a place to purchase the product form, they are wanting a place nearby and easy to get to. Consumers want to be able to find the products they are looking for conveniently. Once a consumer can find what they want at the best place, they will continue to look and shop for their product where they know they can find it.

7 0
3 years ago
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