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3 years ago

What is a good reason to contribute to a 401(k) retirement account?

Business

1 answer:

kykrilka [37]3 years ago

4 0

Answer:

The money in the 401(k) account is not taxed until withdrawn.

Explanation:

A 401 (k) can be defined as a type of compensation (savings) plan that is being sponsored by a business firm or company (employer) to avail its employees the opportunity to contribute into. As a company-sponsored and defined-contribution retirement savings plan, it offers tax advantages to the employees because it reduces their income tax for the particular year while taxing their withdrawals.

A good reason to contribute to a 401 (k) retirement account is that, the money in the 401 (k) account is not taxed until withdrawn. Thus, the money contributed by an employee to a 401 (k) will maintain its tax-deferred status until he or she withdraws it.

For example, a 401 (k) would be the best retirement savings option for a 50-year old medical doctor whose employer offers a 5% contribution match.

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On December 1, Year 1, Jack’s Snow Removal Company received $6,000 of cash in advance from a customer and promised to provide se

AVprozaik [17]

Answer:

Increase Revenue, Decrease Liability

Explanation:

On December 1, They have recognized a liability of $6,000

with the journal entry:

(DR) Cash $6,000

(CR) Unearned Revenue $6,000

Now, on December 31 let's assume that the expiration is an exact

per month division of $2,000 ($6,000 / 3 months)

The adjusting entry would be:

(DR) Unearned Revenue $2,000

(CR) Service Revenue $6,000

The first effect is clear, there is an Increase in Revenue since

the company have rendered the services.

Now, the second effect is that the Liabilities have decreased

because of the debit to "Unearned Revenue" which is a liability.

4 0

3 years ago

What is the primary role of our banking system?

Serhud [2]

Answer:

See explanation section

Explanation:

The primary role of the banking system is to accept deposits from the general public so that the money can be given as a loan to the public in an effective way to foster the economy. It is the safest platform where people keep their money to get a bonus while people borrow money to continue operating.

6 0

4 years ago

Read 2 more answers

In 2-5 paragraphs, describe how you plan to use at least one technology you learned about in the course in order to work more ef

Wewaii [24]

I will use one the technology to boast my work output so that i can be more efficient in my business dealings and boast productivity.

<h3>What is the role of technology?</h3>

The use of technology is one that has helped a lot of business professionals to be more and more efficient in their work output.

Therefore, I will use one the technology to boast my work output so that i can be more efficient in my business dealings and boast productivity as it also helps to keep employee information safe.

Learn more about technology from

brainly.com/question/11265745

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5 0

2 years ago

Company X has beta = 1.6, while Company Y's beta = 0.7. The risk-free rate is 7%, and the required rate of return on an average

Kaylis [27]

Answer:

a. 5.40%

Explanation:

First, I will calculate the new cost of equity for both stock X and Y:

Required rate of return = risk free rate + (beta x market premium)

Re stock X = 8% + (1.6 x 6%) = 8% + 9.6% = 17.6%

Re stock Y = 8% + (0.7 x 6%) = 8% + 4.2% = 12.2%

The difference between the required rate of return = 17.6% - 12.2% = 5.4%

4 0

3 years ago

Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the h

Nat2105 [25]

Answer:

B. decrease

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.

4 0

3 years ago