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Alexus [3.1K]
3 years ago
12

Klaus, a German citizen and non-resident for US tax purposes, owns a small business in New York City that imports and sells acce

ssories for various German-manufactured automobiles. Once a month, the business pays its net profits back to Klaus in Germany. The income from this business will be classified as:____.
a. effectively connected income.
b. fixed and determinable.
c. annual or periodic income.
Business
1 answer:
Luden [163]3 years ago
5 0
The answer is (a.) effectively connected income
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umka21 [38]

Answer:

the future value of the cash flow in year 4 is $5,632.73

Explanation:

The computation of the future value of the cash flow in year 4 is as follows:

= $1,075 × (1.08^3) + $1,210 × (1.08^2) + $1,340 × (1.08^1) + $1,420 ×(1.08^0)

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