Answer:
The correct answer is letter "C": I, II and III.
Explanation:
Portfolio Turnover estimates the fund's percentage of assets that its manager buys and sells for over one year. <em>Portfolio turnover can affect the return of the portfolio, as transaction costs such as commissions and fees are drawn from the assets of the fund</em>. Usually, fund managers who trade securities aggressively try to increase their commission.
<em>Higher portfolio turnover rates imply incurring in higher capital gains translated in higher returns overall but come along with higher taxes that must be paid equally among investors. Both benefits and liabilities are allocated evenly among entrepreneurs into the investment.</em>
Answer:
2.$19,500.
Explanation:
The computation of the amount of dividend is shown below:
As we know that
Ending retained earning balance = Beginning retained earning balance + net income - cash dividend paid
$13,000 = $13,000 + $6,500 × 3 years - cash dividend paid
So, the cash dividend paid is $19,500
We simply applied the above formula
Hence, the correct option is 2.
Answer:
$0
Explanation:
In 2018, one individual could give up to $5.6 million in gifts before any estate or gift taxes were applied. This means that Sam would not have to pay a single penny to the government as long as his will does not exceed $5.6 million.
Answer:
The statement that is not true about dividends is:
Capital gains taxes are lower than dividend taxes, and they can be deferred
Explanation:
Dividends is the money paid to investors and shareholders from the profit the company they invested in has made within a period of time.
Dividends can be earned from investing in stocks, mutual funds or exchange-traded funds and it is a taxable income.
Capital gains on the other hand are the incremental amount of value appreciation an asset accrues when it is purchased and after it is sold. This accrued earnings is also a taxable income.
The tax information is included in Schedule B, Form 1040.
Capital gains taxes are not lower than dividend taxes because the U.S. tax code gives treats dividends and capital gains the same.