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Alchen [17]
3 years ago
9

The Gomez Trust is required to distribute $80,000 annually, split equally between its two income beneficiaries, Lara and Byron.

If trust income is not sufficient to pay these amounts, the trustee can invade corpus to the extent necessary. During the current year, the trust has DNI of $60,000. Byron receives an additional $30,000 discretionary corpus distribution.
a. How much of the $40,000 distributed to Lara is included in her gross income?

b. How much of the $70,000 distributed to Byron is included in his gross income?

c. How much of these distributions are first-tier distributions or second-tier distributions?
Business
1 answer:
Maru [420]3 years ago
6 0

Answer:

A.$30,000

B.$30,000

C.First-tier of $30,000 to both beneficiarie

Explanation:

Gomez Trust

a. (1/2×DNI $60,000)

=$30,000

b.$30,000

c.First-tier of $30,000 to both beneficiarie in which First-tier distributions can be said to be those distributions which are often composed of trust accounting income that is required to be distributed currently.

Hence there are no second-tier distributions because the tier system only accounts for the annual DNI amounts, and all of the $60,000 DNI are been distributed on the first tier.

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Shockglass Company had a beginning inventory of $15,000. During the year, the company recorded inventory purchases of $45,000 an
Otrada [13]

Answer:

A. $10,000

Explanation:

We know that :

cost of goods sold = opening inventory + purchases - ending inventory

hence,

Ending Inventory = opening inventory + purchases - cost of goods sold

therefore,

Ending Inventory = $15,000 +  $45,000 - $50,000

                              = $10,000

The ending inventory must equal: $10,000

8 0
3 years ago
What are four positive aspects of franchising for a business start-up? Why are they important ? .
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The primary advantages for most companies entering the realm of franchising are capital, speed of growth, motivated management, and risk reduction
3 0
3 years ago
In July 2012, a small chocolate factory receives a large order for chocolate bars to be delivered in November. The spot price fo
Anettt [7]

Answer:

$24,530, $23,530

Explanation:

Incomplete word <em>"and if the spot price in September proves to be $2,300."</em>

<em />

Note that Call options will be exercised only if the price on expiry is greater than strike price

Strike price = $2400

Premium paid = $53 for each contract, so the total premium paid = $530 for 10 contracts

<u>CASE 1</u>

Price = $2600

As price on expiry=2600 > Strike price=2400

Call option will be exercised.

Company will pay = $2400 * 10+530 = $24,530

<u>CASE 2</u>

Price = $2300

As price on expiry=2300 < Strike price=2400

Call option will not be exercised and will purchase from open market

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4 0
2 years ago
The cost of sensors used in making digital cameras falls, while a successful ad campaign makes digital cameras more fashionable.
Wewaii [24]

Answer: Indeterminate; Increases

Explanation:

We know that sensors are used as an input in the production of digital cameras. So, if the price of sensors falls, as a result cost of production of digital cameras also falls. This will increase the supply of cameras and shift the supply curve rightwards.

At the same time successful ad campaign will make the digital cameras more fashionable and increases the demand for digital cameras. This will also shift the demand curve rightwards.

Hence, there is an increase in the equilibrium quantity but effect on equilibrium price is indeterminate because it will be depend upon the magnitude of the shift of demand and supply curve.

7 0
3 years ago
1-a. how much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,100 and
diamong [38]

Net operating income will increase/decrease per month if the monthly advertising budget increases by $8,100 and monthly sales increase by $14,400, the net operating income will decrease by $(1620)

Net operating income determines the revenue and profitability of invested actual property assets after subtracting essential operating fees. The system works by using succinctly considering all profits a property makes minus all of the general prices. for instance, a assets might also earn money from tenant rents and a coin laundry system.

To calculate net operating income increase/decrease follow the following steps:

First, calculate the current net operating income

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Contribution margin = 90000

Fixed expenses = 76000

Net operating income ( 90000 - 76000 ) = 14,000

Now, calculate the proposed net operating income

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Fixed expenses = ( 76000 + 8100) = 84100

Net operating income ( 96480 - 84100 ) = 12380

Therefore net operating income decreased by ( 14000 - 12380 ) = $(1620)

Net operating income measures an income-producing asset's profitability before including any prices from financing or tax. To calculate Net operating income, subtract all running prices incurred on a property from all sales generated at the belongings.

Learn more about tax here brainly.com/question/26316390

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8 0
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