If you invest $475 per month for a period of 30 years, earning 10.2% (annual), how much will you have at the end of the period?

In need of extra cash, Troy and Lily decide to withdraw $2 comma 100 from their traditional IRA. They are both 40 years old. T

krek1111 [17]

Answer:

Calculate the tax consequence of withdrawal from retirement account.

T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.

Analysis

They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.

Calculation of tax consequences if withdrawal amount is $2,100:

Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.

= $2100 × 35%

= $735

The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.

= $2100 × 10%

= $210

(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)

Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:

Total expenses =$735 + $210

Total expenses = $945

Conclusion

Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.

8 0

2 years ago

Someone with dollar bills to lend will never agree to make a loan with a nominal interest rate of less than zero because:

saw5 [17]

<span>Having a nominal interest rate less than 0 would mean that a depositor pays a bank to hold its money. If the annual nominal interest rate is negative 1 percent, a deposit of $1000 dollar would come out $10 dollar short the following year which is why someone with dollar bills will never agree to loan with a nominal interest rate that is negative percent.

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7 0

2 years ago

Tim is a member of the sales department at FreshOveggie, a gourmet grocery store. One of hismajor tasks includes sending e-mails

Zina [86]

Answer:

D.

Explanation:

Variety of sales jobs: There are hundreds, maybe thousands, of different types of sales positions. Almost every good or service you know of has a salesperson who sells it to one or more people.

Types of sales jobs:

-Retail sales person. Sells goods or services to consumers for their personal use.

-Wholesale sales person. Buys products from manufactures and sell to other organizations.

-Manufacturer’s sales representative, typically sell directly to wholesalers or retailers.

-Order taker: usually will ask the customer what he/she wants or wait for the customer to order. They do NOT have a sales strategy and often use no sales presentation. Example: think of a waiter.

-Order getter: get new and repeat business using creative sales strategies and a well-executed sales presentation.

8 0

2 years ago

Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.

Masteriza [31]

Answer:

a. Determine the amount Stoll should report on its December 31, 2017, balance sheet for its long-term investments in available-for-sale securities.

Company B notes $82,300
Company C bonds $603,800
Company X bonds $120,000
Company Z notes $276,000

b. (same as c.)Prepare any necessary December 31, 2017, adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.

Dr Company B notes 4,800
Cr Unrealized gain on Company B notes 4,800 (= $82,300 - $77,500)

Dr Unrealized loss on Company C bonds 38,340 (= $603,800 - $642,140)
Cr Company C bonds 38,340

Dr Unrealized loss on Company X bonds 2,100 (= $120,000 - $122,100)
Cr Company X bonds 2,100

Dr Company Z notes 8,100
Cr Unrealized gain on Company Z notes 8,100 (= $276,000 - $267,300)

Explanation:

beginning of the year cost fair value

Company A bonds $534,100 $492,000

Company B notes $159,140 $155,000

Company C bonds $662,400 $642,140

since available for sale assets must be recorded at fair value, we must assume that the company prepared the adjusting entries at the end of the previous year (unrealized gains or losses):

Jan. 29 Sold one-half of the Company B notes for $78,820.

Dr Cash 78,820

Cr Company B notes 77,500

Cr Gain on sale of Company B notes 1,320

July 6 Purchased bonds of Company X for $122,100.

Dr Company X bonds AFS 122,100

Cr Cash 122,100

Nov. 13 Purchased notes of Company Z for $267,300.

Dr Company Z bonds AFS 267,300

Cr Cash 267,300

Dec. 9 Sold all of the bonds of Company A for $524,800.

Dr Cash 524,800

Cr Company A notes 492,000

Cr Gain on sale of Company B notes 32,800

3 0

2 years ago

Given the law of demand, you would expect the rise in the price of gasoline to ______ the quantity of gasoline demanded and _

just olya [345]

Answer:

C. decrease; not change

Explanation:

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

The rise in price of gasoline only affects the quantity demanded. Other factors affect the demand for gasoline.

I hope my answer helps you

6 0

3 years ago