1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jonny [76]
4 years ago
10

Will and Janine are divorced during the current year. Will is to have custody of their two children and will receive their house

as part of the divorce sttlement. The house, which Will and Janine bought for $60000 is worth $100000. Janine is to receive one of their automobiles, for which they paid $21000 and which is now worth $9000. Will will get the other automobile, which cost $6000 and which is now worth $2000. Janine is to pay Will alimony of $900 per month. However, the alimony payment is to be reduced by $200 per month as each child reaches age 8 or if a child shoud die or marry before reaching age 18. What are the tax effects of the divorce settlement for Will and Janine?
Business
1 answer:
Leto [7]4 years ago
7 0

Answer:

Since Will is getting the custody of their two children, he can claim them as dependents and deduct exemptions when he files his taxes.

  • child tax credit ($2,000 per child under 18)
  • child and dependent tax credit (up to $3,000 per child under 13 and $500 for dependent over 13)
  • American opportunity education credit (up to $2,500 per child that studies x 4 years maximum)

Alimony can no longer be deducted from Janine's AGI, nor it should be included in Will's AGI.

Property distributions (cars and house) will not have any effect in their taxes, but if they sell them, their basis will be the value at the time of divorce.

You might be interested in
Mikkelson Corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk prem
enot [183]

Answer:

a. 16.50%

Explanation:

Find the beta as of last year using CAPM;

CAPM ; r = risk free + beta(Market risk premium)

0.125 = 0.03 + beta(0.0475)

Subtract 0.03 from both sides;

0.125-0.03 = 0.0475beta

0.095 = 0.0475beta

Divide both sides by 0.0475;

0.095/0.0475 = beta

beta = 2

Next, use CAPM again to find the new required return with a market risk premium is 4.75%+ 2% = 6.75%

r =  0.03 + 2(0.0675)

r = 0.03 + 0.135

r = 0.165 or 16.5%

Therefore, the new required return is 16.5%

6 0
3 years ago
Exports of tin and silver were the mainstays of the _______ economy for many decades. However, today, as the market for tin has
iren [92.7K]
<span>The answer is the option B. Bolivian. Bolivia has historically been a single-product exporter country. In the past they exported tin and later silver. They continue having a mining based economy. Nowadays, their main commodities are gas and zinc. The market of tin collapsed in the '80s. Gold production and exports have increased enormously over the the past decade. Summarizing, by far the most important export product of Bolivia is gas, and they have increased the exports of other mining products like zinc, gold, silver. Other metals include antimony, iron and tungsten.</span>
8 0
3 years ago
Read 2 more answers
Given the following information, determine net income. The retained earnings balance on January 1, 2018, equals $58,000; dividen
damaskus [11]

Answer:

$25,200

Explanation:

Given that,

Retained earnings balance on January 1, 2018, = $58,000

Dividends during 2018 = $18,350

Retained earnings balance at December 31, 2018 = $64,850

Therefore,

Net income:

= Retained earnings balance at December 31, 2018 + Dividends during 2018 - Retained earnings balance on January 1, 2018

= $64,850 + $18,350 - $58,000

= $25,200

7 0
3 years ago
Using the value-to-book version of the residual income valuation approach, the value-to-book ratio is determined as________.
Alja [10]

Using the value-to-book version of the residual income valuation approach, the value-to-book ratio is determined as <u>one plus the present value of future residual ROCE.</u>

<u />

Residual income is the earnings an individual has left in spite of everything private debts and prices are paid in personal finance. Residual earnings are the extent used to assist determine the creditworthiness of an ability borrower.

Basically, it's for the amount of cash that is left over after making the important bills. Residual income is a crucial metric because it is one of the figures that banks and lenders observe earlier than approving loans.

In monetary surroundings, residual earnings are the money that someone has left over after their charges are included every month. Passive earnings, but, nevertheless has the identical definition in a financial environment that it does in online commercial enterprise surroundings.

Learn more about residual income here brainly.com/question/14262217

#SPJ4

3 0
2 years ago
Olinick Corporation is considering a project that would require an investment of $354,000 and would last for 8 years. The increm
Schach [20]

Answer:

3.7 years

Explanation:

Given that,

Initial investment = $354,000

Net income = $47,000

Depreciation = $48,000

Annual cash flow:

= Net income + Depreciation

= $47,000 + $48,000

= $95,000

Payback period:

= Initial investment ÷ Annual cash flow

= $354,000 ÷ $95,000

= 3.7 years

The payback period of the project is closest to 3.7 years.

6 0
3 years ago
Other questions:
  • Synergy Company expects the following results for the next accounting period Sales Variable costs Fixed costs Expected productio
    9·1 answer
  • What is your favorite sport
    5·1 answer
  • Leaders using the __________ style of leadership are only minimally involved in decision making and encourage group members to m
    7·1 answer
  • The resource of production called "natural resources" includes which of the following
    9·1 answer
  • You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangement
    9·1 answer
  • - The business market consists of all the organizations that acquire goods and services used in the production of other products
    12·1 answer
  • Grouper Company sold 214 color laser copiers on July 10, 2020, for $3,800 apiece, together with a 1-year warranty. Maintenance o
    14·1 answer
  • A unit of measure that equals 2.471 acres or 10,000 square meters of land is called what?
    7·2 answers
  • The union and management agreement that allows non-union people to be hired but requires that they join the union after a probat
    9·1 answer
  • What is a potential advantage to using the annual rate of return method for determining the desirability of a project rather tha
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!