Answer:
The answer is a) an accrued receivable transaction
Explanation:
The sale of a subscription by the magazine company can be viewed as a source of income. A sale of a subscription service where cash is collected after the service has been provided is treated as an accrued receivable transaction. The recognition of revenue from the sale of the subscription is based on revenue recognition principle which states that revenues are recognized when they realized and earned.
Answer: Review Evan's investor profile factors and other facts to determine a suitable course of action to address his concerns and needs
Explanation:
The options include:
A. Recommend that Evan consider an exchange into a variable life insurance policy because it has growth potential with a death benefit.
B. Recommend that Evan surrender the annuity and invest in bond mutual funds because they work similar and cost less.
C. Review Evan’s investor profile factors and other facts to determine a suitable course of action to address his concerns and needs.
D. Update his investor profile factors and risk tolerance, and discuss with Evan the long term focus of a variable annuity and how it will outperform the fixed annuity within the first couple of years.
Based on the information given in the question, the best thing that the representative should do will be to review Evan's investor profile factors and other facts to determine a suitable course of action to address his concerns and needs.
When Evan's investor profile factors is checked, then the representative can then inform Evans about the appropriate thing to do and if it's appropriate for him to purchase a variable annuity to earn a higher return.
Going ahead by getting out of the fixed annuity and purchasing a variable annuity without reviewing Evan's investor's profile isn't appropriate.
Answer:
The deductible interest expense is $22,000.
Explanation:
Margaret Lindley paid $15,000 of interest on her $300,000 acquisition debt for her home (fair market value of $500,000).
She paid $4,000 of interest on her $30,000 home-equity loan.
She also paid $1,000 of credit card interest and $3,000 of margin interest for the purchase of stock.
Margaret Lindley has $10,000 of interest income this year and no investment expenses.
The deductible interest expense
= $15,000 + $4,000 + $3,000
= $22,000
The interest on credit cards is not deductible as it is a personal interest.
Answer:
Option B $128700
Explanation:
The amortization can be calculated using the following formula:
Amortization for the Year = Assets Value * (Turquoise Extracted / Total Turquoise)
Amortization for the Year = $429,000 * (1950/6,500) = $128,700
The method used is depletioning method because it seems that the company will extract all of the turquoise within the 3.33 year time (6500/1950), which is within the 5 years duration for which the right to extract the turquoise is purchaseed. Otherwise the straigth line method would had be used here.