A Living Will is a legal document in which a person specifies what actions should be taken for their health if they are no longer able to make decisions for themselves because of illness or incapacity.
Answer: C. open a cash account and invest in mutual funds holding high yielding common and preferred stocks
Explanation:
Investing in Mutual funds which hold high yielding common and preferred shares is the best option here. The dividends received will be high enough but will not be taxed too much as dividend tax is limited to 15% thereby saving the investment on taxes.
Also seeing as they will require the investment in other to buy a house in 5 years, they will need something that can be easily liquidated. Mutual funds are easy to liquidate from and so their investment here can be easily withdrawn when the time comes to allow them meet the house down payment.
Answer:
the paid-in capital from treasury stock transactions would be reduced by $20000
Explanation:
Treasury stock is the stock that is bought by the stakeholders of the issuing company.The treasury stock does not receive dividends. Paid in capital are money being paid by investors in exchange for shares.
If the company resells Treasury Stock that originally cost $60,000 for $40,000.
The paid-in capital from treasury stock transactions to be reduced = $60,000 - $40,000 = $20000
They don't have to pay as much interest.
