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Eddi Din [679]
3 years ago
12

Problem 2-15 (Algorithmic) Life Insurance (LO 2.8) Sharon transfers to Russ a life insurance policy with a cash surrender value

of $24,800 and a face value of $74,400 in exchange for real estate. Russ continues to pay the premiums on the policy until Sharon dies 7 years later. At that time, Russ has paid $11,160 in premiums, and he collects the $74,400 face value. How much of the proceeds, if any, is taxable to Russ
Business
1 answer:
skelet666 [1.2K]3 years ago
6 0

Answer:

$38,440

Explanation:

Calculation to determine How much of the proceeds, if any, is taxable to Russ

Face value of policy $74,400

Less: Cash Surrender value ($24,800)

Less: Premium paid ($11,160)

Taxable Proceeds $38,440

Therefore the taxable Proceeds are $38,440.

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Accounts Payable: $19,207
lisabon 2012 [21]

Answer:

total liabilities = $169,008

Explanation:

total liabilities:

  • Accounts Payable: $19,207
  • Discount on Bonds Payable: ($7,000) ⇒ contra liability account
  • Sales Tax Payable: 3,512
  • FICA Tax Payable: 3,200
  • Bonds Payable: 100,000
  • Note Payable, due in two years 1,709
  • Unearned Service Revenue 30,500 ⇒ must be reported as a liability
  • Salaries and Wages Payable 17,880

to determine the total liabilities we just have to add both current and long term liabilities, and subtract any contra liability accounts = $176,008 - $7,000 = $169,008

7 0
2 years ago
Individuals who want to work and have searched for work in the prior​ year, but are not currently looking for work because they
Makovka662 [10]

Answer:

Discouraged; are not

Marginally attached; are not

Employed; are

Explanation:

Those workers who have had a job in past but are currently unemployed and are not currently looking for work because they were not able to find job are called discouraged workers.

They believe they will not find a job now so have stopped looking. These workers are not included in the labor force.

Marginally attached workers are those workers who are not employed but are not looking for work because of a number of reasons such as illness, school, responsibility, etc. These workers are also not included in labor force.

Those workers who would like to have full-time job but are employed part-time are considered employed. These workers are included in the labor force.

8 0
3 years ago
Montross Lumber processes wood to be shipped to construction companies. In order to keep its products uniform, Montross conducts
tiny-mole [99]

Answer:

$450

Explanation:

Activity based costing is the process by which a business allocates cost on the basis of the number of times an activity is carried out.

For example if different departments use a photocopier to copy 3,000, 5,000, and 2,000 sheets. The total cost will be allocated based on amount of activity per department.

In this instance

Total number of boards= 36,000

Inspections= 5% of the total

Inspection cost= $15 per hour

Percentage that will be inspected= 0.05 * 36,000 = $1,800

It takes one minute to inspect each board, there are 60 minutes in one hour. So 60 boards are inspected in one hour.

Number of inspection hours= 1,800 ÷ 60= 30 hours

Total cost of inspection= Cost per hour * Number of hours

Total cost of inspection= 15 * 30= $450

7 0
3 years ago
Match each type of tax with its correct description.
Masja [62]

Answer:

1. Medicare tax.

2. Local income tax.

3. Federal income tax.

4. Social Security tax.

5. State income tax.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The various type of tax with their correct description are;

1. Medicare tax: it is used to support healthcare costs for retired workers. An example is the Affordable Care Act (ACA) which became effective on the 23rd of March, 2010 and it's focused on making affordable health insurance available to qualified people or households through cost-sharing reductions and premium tax credits (subsidies).

2. Local income tax: it is collected by town, school district, counties and cities to fund city or community programs.

3. Federal income tax: it is collected from most workers, who pay up to 39.6 percent of their earnings. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

4. Social Security tax: it is used to provide financial support to retired and disabled workers. In the United States of America, the Social Security Administration (SSA) adopted the Old-Age, Survivors, and Disability Insurance (OASDI) program to support retired and disabled workers.

5. State income tax: it is collected from workers in most states to fund their budget and the rate differs from state to state.

9 0
3 years ago
An activity-based costing system is developed in four steps: a. Compute the predetermined overhead allocation rate for each acti
Andru [333]
<h3>Hello there!</h3>

Your question asks what order does a activity-based costing system work by.

<h3>Answer: b, c, a, d</h3>

The order:

1. b). Identify activities and estimate their total indirect costs.

2. c). Identify the allocation base for each activity and estimate the total quantity of each allocation base.

3. a). Compute the predetermined overhead allocation rate for each activity.

4. d). Allocate indirect costs to the cost object.

The reason why the answer choice "b, c, a, d" is the correct answer because that's the correct order for the activity-based costing system.

The activity-based costing system first identifies the activities that are going on and find the indirect cost, then identifies the allocation base for the activities that are occurring to find the quantity of the allocation base, then solve the pre-determined rate of allocation for each activity, and finally get the indirect cost for the object.

<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
8 0
3 years ago
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