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2 years ago

Which statement describes the effect of taxes on a traditional 401(k) retirement account?

Business

1 answer:

worty [1.4K]2 years ago

3 0

Answer:

A traditional 401(k) is tax deferred because the income earned isn't taxed until the money is withdrawn.

Explanation:

A 401 k is a qualified tax-advantaged saving retirement plan. Usually, 401K plans are employer-sponsored. Employee contributions to the 401 k plans are deducted from the payroll before taxes are calculated. It means the employee contribution is not taxed at the time it's withheld by the employer.

The amounts saved are invested in market securities such as shares and bonds. The tax due from earning from the investment is deferred to the time of withdrawal. The employee is not required to pay taxes on contributions and investments earning every financial year.

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Fogel Co. has $4,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value co

Wewaii [24]

The total unamortized bond premium at the date of conversion was $280,000. Fogel should record, as a result of this conversion, a <span>credit of $217,600 to Paid-in Capital in Excess of Par. Thee answer is A.

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3 0

2 years ago

What is cash flow?...................................

notka56 [123]

Answer:

Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company's ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow

Explanation:

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2 years ago

When required reserves exceed actual reserves, commercial banks will be forced to have borrowers:?

torisob [31]

Repay loans so that the bank can get it reserves back up to the required level

6 0

2 years ago

Suppose banks keep no excess reserves and that all banks are currently meeting the reserve requirement. The Federal Reserve then

ANTONII [103]

Answer:

1. Assets is debited for $10,000 as loans.

2. Liabilities is credited for $10,000 as deposits.

Explanation:

Note: This question is not complete as the amount is omitted. The complete question is therefore presented before answering the question as follows:

Suppose banks keep no excess reserves and that all banks are currently meeting the reserve requirement. The Federal Reserve then makes an open market purchase of $10000 from Bank 1.

Use the T-account below to show the result of this transaction for Bank 1, assuming Bank 1 keeps no excess reserves after the transaction.

The explanation of the answer is now given as follows:

Note: See the attached photo for Bank 1's T-Account.

In the attached photo, we can see that:

1. Assets is debited for $10,000 as loans.

2. Liabilities is credited for $10,000 as deposits.

6 0

2 years ago

"A user complains that his computer is taking a long time to boot. During the boot process, you observe that the hard drive acti

MArishka [77]

Answer:

You should add an identical hard drive, and configure a RAID-0 volume.

Explanation:

7 0

3 years ago