1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natta225 [31]
2 years ago
13

Allen Green is a single taxpayer with an AGI (and modified AGI) of $214,000, which includes $172,000 of salary, $26,200 of inter

est income, $10,400 of dividends, and $5,400 of long-term capital gains. What is Allen's net investment income tax liability this year, rounded to the nearest whole dollar amount
Business
1 answer:
lakkis [162]2 years ago
3 0

Answer:

$532

Explanation:

The income that is considered for NIIT is the (a) lesser of the net investment income or (b) the amount by which MAGI exceeds the applicable threshold.

a. $42,000 ($26,200 interest income + $10,400 dividends + $5,400 Long-term capital gains)

b. $14,000 ($214,000 - $200,000)

Note: MAGI threshold of $200,000 for single taxpayer is applicable before they fall under the NIIT bracket of 3.8% of tax.

Net Investment Income = $14,000

Net investment income tax liability = Net Investment Income * 3.8%

Net investment income tax liability = $14,000 * 3.8%

Net investment income tax liability = $532

So, Allen's net investment income tax liability this year is $532.

You might be interested in
Tim Mattke Company began operations in 2018 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2020,
Nookie1986 [14]

Answer:

a)     $360,000

b)     $52,000

c) Net Income                             360,000            344,000        316,000

Explanation:

Part 1) Determine the net income for 2020 as follows using the First In First Out (FIFO)

= FIFO 2020 = $450,000 - The Income Tax

= $450,000 - ($450,000 x 0.35)

= $450,000- $90,000

= $360,000

Part 2) Compute the cumulative effect in change of the weighted average to FIFO

 Weighted average  FIFO    Difference    [email protected]%(difference)  net effect

2018  370,000               395,000    25,000                     5,000           20,000

2019   390,000              430,000     40,000                    8,000           32,000

Total in Net effect                                                                               $52,000

Part 3) Show comparative income statement as follows

                                                         2020                     2019                2018

Income before tax                          450,000              430,000         395,000

Remove the tax (@20)                      90,000                86,000          79,000

Net Income                                       360,000            344,000        316,000

                         

7 0
3 years ago
The basic laws of forecasting help to avoid misapplication or misrepresentation of forecast results.
Zigmanuir [339]

Answer:

Law 2

Explanation:

In probability. As bigger the group we are trying to predict , the higher probability to be more accurate

8 0
3 years ago
What would bill fall under, he applied and acquired for a new credit card and uses it regularly?
lidiya [134]

If  he applied and acquired for a new credit card and uses it regularly he will fall under: Voluntary.

<h3>What is credit card?</h3>

Credit card can be defined as the card that enables the card holder to carryout transactions such as purchases online in which the holder is expected to payback the amount used for the purchases.

If a obtain a new credit card which he use often or frequently, bill will tend to fall under voluntary because he voluntary applied for the credit card without being comply to do so.

Therefore bill will fall under voluntary.

Learn more about credit card here:brainly.com/question/8432538

#SPJ12

4 0
2 years ago
The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder
tigry1 [53]

Answer:

The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.

This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).

The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.

This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.

When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.

When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.

Explanation:

8 0
3 years ago
Scene: A savvy investor has a mix of stocks and bonds in their investment portfolio. Why would it be a good idea to mix stocks a
Komok [63]

Answer:

Explanation:

It wouldn't now, unless you are very wealthy. Interest rates are very low and you would have to go into the junk bond market to get any kind of decent return. But Junk Bonds are or can be very unstable and you get a high return for a very chancy situation.

I think I know what the question wants you to understand. You need something that will provide with income. You just don't want to deal with bonds. There are stocks around that pay dividends; they are very conservative and if they go down, that will be the least of your problems.

You can then devote your resources to capital gains or pure stocks: no interest payments, but the stock itself goes up. There is a whole different tax system for capital gains.

You should also get some gold or silver as insurance.

Since you have asked about stocks and bonds, I have not said anything about cryptos. That's an option, but you have to be very knowledgeable because those things can be an investment nightmare.

7 0
2 years ago
Other questions:
  • The fed buys $5 billion worth of treasury bonds on the open market
    11·1 answer
  • Which of the following determines​ "when specific products will be​ made, when specific customer orders will be filled and what​
    15·1 answer
  • A pet shop owner had a parrot with a sign on its cage that said "Parrot repeats everything it hears". Davey bought the parrot an
    12·1 answer
  • At a price of $3.50 per loaf, a bakery is willing to supply 450 loaves of bread per week. At a price of $4.00 per loaf, the bake
    8·1 answer
  • The balance in retained earnings at December 31, 2017 was $1,440,000 and at December 31, 2018 was $1,164,000. Net income for 201
    15·1 answer
  • Collins Inc. is investigating whether to develop a new product. In evaluating whether to go ahead with the project, which of the
    8·1 answer
  • A company is going to issue a $1,000 par value bond that pays a 5% annual coupon. The company expects investors to pay $684.5 fo
    14·1 answer
  • Lucasfilm Ltd. v. High Frontier and Lucasfilm v. Committee for a Strong, Peaceful America
    5·2 answers
  • The Fed is the most independent of all U.S. government agencies. What is the main difference between it and the other government
    15·1 answer
  • You have just purchased a new DVD player to show videos to your customers. The DVD player costs $500, and you depreciate the mac
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!