Answer: b. 3 years
Explanation:
Based on the future value of $3,246 and the annual payment of $1,000, one can guess that the number of payments (years) till the future value is reached will be 3 years.
Plug 3 years in to find out if you are right;
= Annuity * (( (1 + r)^n - 1) / r)
= 1,000 * (( ( 1 + 8%)³ - 1) / 8%)
= $3,246
<em>Answer is proven to be 3 years. </em>
Answer:
Fair Value adjustment $5,000 Dr.
Unrealized holding gain-net income $5,000 Cr.
Explanation:
Common stock purchase price = $500,000
North company outstanding stock = $10,000,000
5% stock of outstanding stock purchased :
(5/100) * $10,000,000
0.05 * 10,000,000
= $500,000
Fair value of investment = $505,000
Adjustment in fair value = $505,000 - $500,000 = $5000 ( Debit)
Unrealized holding gain-net income = $505,000 - $500,000 ( Credit)
Answer:
A qualified dividend is taxed at the capital gains tax rate and ordinary dividends are taxed at standard federal income tax rates. Qualified dividends must meet special requirements put in place by the IRS.
Explanation: