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Furkat [3]
3 years ago
13

Required information [The following information applies to the questions displayed below.] Desmond is 25 years old and he partic

ipates in his employer's 401(k) plan. During the year, he contributed $3,000 to his 401(k) account. What is Desmond's saver's credit in each of the following alternative scenarios? (Use Exhibit 13-8) (Leave no answer blank. Enter zero if applicable.). a. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $34,000. Saver's credit
Business
2 answers:
IceJOKER [234]3 years ago
7 0

Answer:

Saver Credit of Desmond is $0.  

Explanation:

It is to encourage the taxpayers to contribute in the retirement plans. It is applicable for all qualified retirement plans. An additional credit up to $ 2000 is available from any other deduction from the retirement account. Saver credit percentage is determined by taxpayers filling status and AGI.

In the present case Desmond 25 years old, contributed $3000 in employer’s 401(k) plan. He wants to know his saver’s credit limit in various situations.

A) Desmond is single without dependents and his AGI after contributing to 401(k) plan is $34000. Saver’s credit of D is calculated as:

Desmond will come under “all other filers AGI” because he is single without dependents. As his AGI is above $ 30750 there is no credit available for him.

Hence, maximum saver credit of Desmond is $0.  

MrRa [10]3 years ago
6 0

Answer:

Saver's credit = $0

Explanation:

He is not entitled to any saver's credit, as he is not married and his AGI is greater than $32,000. Therefore the Saver's credit is equal to zero. Is also important to consider that Desmond is a head of a household and his AIG is between 31,126 and 48,000.

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Answer:

Introduction

The body of the letter is usually divided into the three paragraphs (one is the introduction, then supporting details, then conclusion of topic).

5 0
3 years ago
Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equil
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Answer:

Positive economic profit

Explanation: In the economic profit, we have to consider the revenue earned and the cost of production including the opportunity cost. In the scenario above, the economic profit is positive, because, the average and marginal cost falls by $0.15 at a time when the sales price of the product is $0.20. The economic profit here is positive, due to the further reduction in the marginal and average price of an important material in the production process. In this scenario, due to positive economic profit, the New firms are attracted to the market.

6 0
3 years ago
A 15-year annuity pays $1,475 per month, and payments are made at the end of each month. If the interest rate is 9 percent compo
fredd [130]

Answer:

Explanation:

First of all we shall calculate the present value of an annuity( at the end of 7 years )  of 1475

at interest rate of 6/12 = .5 % for total instalment of 12 x 8 = 96 ( 6% compounded monthly )

rate of intt .5% , no of instalment 96

PV of annuity of 1475

= 112252.66

This amount has to be discounted at 9 % to present value for 7 years

or calculated at 9/12 = .75% for 84 instalment

PV of 112252.66

= 59925.55

Now , we shall calculate PV of annuity of 1475 for 7 years compounted monthly ( rate of intt .75 % , no of instalment 84)

PV of annuity of 1475

= 91671.84

Total value

= 59925.55 + 91671.84

= 151597.39

3 0
4 years ago
After 10 years of regular monthly payments on a 25-year amortized loan for $245,000 at 3.125% interest compounded monthly, how m
IrinaVladis [17]

Answer:

The answer is "36.197%".

Explanation:

p = \$ 245,000 \\\\r= 3.125\% = 0.03125\\\\n=12 \\\\t= 25 \ years\\\\

Formula for EMI

\to p \times \frac{r}{n} \times [\frac{(1+\frac{r}{n})^{nt}}{(1+\frac{r}{n})^{nt} -1}]

= 245,000 \times \frac{0.03125}{12} \times [\frac{(1+\frac{0.03125}{12})^{12 \times 25}}{(1+\frac{0.03125}{12})^{12 \times 25} -1}]\\\\= \$ 1177.81\\\\

Formula for calculate balance after 10 years:

\to p \times (1+\frac{r}{n})^{nt} - EMI (\frac{(1+\frac{r}{n})^{nt} -1}{\frac{r}{n}})

\to 245,000 \times (1+ \frac{0.03125}{12})^{10\times 12} - 1177.81 [\frac{(1+\frac{0.03125}{12})^{10\times 12} - 1}{ \frac{0.03125}{12}}]\\\\\to \$ 334739.43 - \$ 165,662.30\\\\\to \$ 169077.13

Total amount after 10 years:

\to \$265000 -\$169077.13\\\\\to \$ 95922.87

calculate rate:

= \frac{\$ 95922.87}{\$ 265,000} \times 100\\\\= 36.197 \%

8 0
3 years ago
Davol Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manuf
dimaraw [331]

Answer:

B. $106,000

Explanation:

Total budgeted manufacturing overhead for October = Budgeted variable manufacturing overhead + Budgeted fixed manufacturing overhead

Total budgeted manufacturing overhead for October = ($6.8 × 5,000 hours) + $72,000

Total budgeted manufacturing overhead for October = $106,000

5 0
3 years ago
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