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3 years ago

Determine the gross income of the beneficiaries in the following cases:

Business

1 answer:

olga nikolaevna [1]3 years ago

8 0

Answer:

1. Justin’s employer was downsizing and offered employees an amount equal to one year’s salary if the employee would voluntarily retire.

the compensation is included in Justin's gross income.

2. Trina contracted a disease and was unable to work for six months. Because of her dire circumstances, her employer paid her one-half of her regular salary while she was away from work.

the compensation is included in Trina's gross income.

3. Coral Corporation collected $1,000,000 on a key person life insurance policy when its chief executive died. The corporation had paid the premiums on the policy of $77,000, which were not deductible by the corporation.

the benefits are included in the company's taxable income, but the premiums paid are deductible

4. Juan collected $40,000 on a life insurance policy when his wife, Leona, died in 2020. The insurance policy was provided by Leona’s employer, and the premiums were excluded from Leona’s gross income as group term life insurance. In 2020, Juan also collected the $3,500 accrued salary owed to Leona at the time of her death.

the life insurance policy proceeds are not taxable, but the accrued salaries are taxed

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Adjustments help to ensure that all revenues are recorded in the period in which they are:______

Andrew [12]

Answer: made

Explanation: In simple words, adjustment in accounting refers to the transactions that are not recorded in the accounts yet but actually belongs to it with respect to the time period of their occurrence.

There are generally five types adjusting entries accrued revues, accrued expenses, deferred revenues, deferred expenses and deprecation expenses. Such entries are usually made at the end of the year in their respective accounts.

5 0

3 years ago

"A customer has a restricted margin account with $2,500 of SMA. If the customer wishes to buy $7,500 of marginable common stock,

drek231 [11]

Answer:

$1,250

Explanation:

Given the following :

Amount of marginable stock customer wishes to buy = $7,500

Restricted margin account with $2500 of SMA

Since the account is a restricted margin account, that is (account has fallen below intial requirement). There must be a deposit of 50% in the regulation T account.

Hence, to purchase a marginable stock of $7,500;

50% of $7,500 should be deposited;

50/100 × 7,500 = $3750

Since there is $2500 of SMA in restricted margin account

Hence, the amount needed will be ;

($3,750 - $2,500) = $1,250

8 0

2 years ago

Who elses helath and safety might be affected by your work ?

Mrrafil [7]

The kids
Are the ones who affect it why wont u

3 0

2 years ago

7.37 For the net cash flow series, (a) determine the number of possible i* values using the two sign tests, (b) find the EROR us

nlexa [21]

Answer:

The answer is 25.19% .

Note: The values were not stated for the net series cash flows, during my research and i found the complete question and solved it.

Explanation:

From the question given,

The first step is to make use of a table for the net cash flow series

Year 1 2 3 4 5 6

Net cash flow $4100 $2000 $7000 $12000 $700 $800

Then,

Solution : MIRR is defined as modified internal rate of return, It accounts for the positive cash flows with reinvestment by using re-investment rate and negative cash flows are calculated at their present values to keep the fund aside by using finance rate.

As given also reinvestment rate = 20% and finance cost rate = 10%.

Now, from the table given of cash flows, we will calculate the future value of all cash flows in year 6.

FV = 4100*(1+0.20)^5 + 12000*(1+0.20)^2 + 800*(1+0.20)^0 = $28282.11

Now,

By applying the rate of we will computer teh PV of -ve cash flows :

PV = -2000/(1+0.1)^2 + -7000/(1+0.1)^3 + -700/(1+0.1)^5 = -$7346.73

Now MIRR can be calculated by using the formula , MIRR = \√[n]{FV(positive cash flows/PV of negative cash flows)}-1 = \√[6]{28282.11/7346.74)}-1

MIRR = 1.2519-1 = 0.2519 or 25.19%

Therefore, the only value Possible = 25.19% in this case.

5 0

3 years ago

Ms. Pear owned 1,000 shares of YZ Corporation which she had purchased in Year 1 at a cost of $12 per share. In Year 3, she recei

Neko [114]

Answer:

$2,000

Explanation:

Ms. Pear invested $12,000 in 1,000 shares of YZ Corporation. After the dividends she received and the stock split, she ended with 2,400 shares. Since she sold 400 shares, it represents 16.67% of her total shares (= 400 / 2,400). To determine the basis for the 400 shares she sold all we need to do is multiply 16.67% x $12,000 (initial investment) = $2,000

7 0

3 years ago