Answer:
d. All of the last 12 payments he received are taxable.
Explanation:
In the case when the life expectancy is 180 months and collected 192 payments prior he died
So according to the question, all the 12 payments would be received are taxable
Here the payment that received for 180 months would not be involved in the gross income and the remaining 12 payment would be taxable
Therefore the option d is correct
Answer:
$0, income statement s not affected.
Explanation:
The purchase and resale of treasury stock does not affect the income statement. When a company's treasury stock is resold, additional paid-in capital increases (if the stock were sold at a price above cost) or decreases (if the stock were sold at a price below cost).
Answer:
External funds needed = $40,000.
Explanation:
An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the Asset = Liability + Shareholder's Equity Equation unbalanced.
Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).
Net income = Sales * profit margin = $500000*10% = $50000
Dividend= Net income * payout ratio = $50000*20%= $10000
Increase in retained earnings = Net income - Dividend = $(50000-10000)
= $40000
Increase in assets = $80000
External funds needed = $(80000-40000) = $40,000.
In the year 2000, the US census showed that 9.1% of those over 75 had not married so the percentage is relatively low and from 75-84 yrs old, about 50% were still married, 40% were widowed and 5.4 % were divorced.
When Federal reserve banks purchase government securities from commercial banks, they increase the reserves in the banking system and they also increase the lending ability of the commercial banks.
If the Federal reserves want to increase the reserves, what they do is to buy securities. They then make a deposit to the account held at the commercial bank.
An example is if the Feds should buy securities of 1000 dollars, the bank would be having an excess of 1000 dollars to lend.
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