9, Pg. 136. By age 50, they will have accumulated a lot more wealth in housing, RRSPs and CPP, and the children will have left home. Thus, their total insurance needs will have reduced greatly, and if they still want some coverage, they can get the lesser amount at higher rates and still fit within the sort of budget they have now. This is partly a practical decision given that we have not provided rates beyond 20 year term in the book.
The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jackson’s taxable income? Total Income $200,000 $200,000 $200,000 Total Income $200,000 Total Income $50,000 Nontaxable income total (250K-200K home sale) $50,000 Nontaxable income total (250K-200K home sale) $150,000 Gross Income $150,000 Gross Income $0 Total AGI deductions (2,500+1,500) $(3,000.00) Total AGI deductions (2,500+1,500) Adjusted Gross Income $150,000 $147,000 Std Deduction $(12,200.00) From Table, Married filing Jointly $(12,200.00) From
The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If Alicia’s AGI is $50,000 (before considering the loss), determine her itemized deduction for the casualty loss. a.|$2,100.| b.|$5,900.| c.|$6,100.| d.|$16,900.| e.|None of the above.| ANS: C |Business Use|Personal Use| Cost|$20,000 |$20,000 | Less: depreciation| (8,000)| -0- | Basis|$12,000 |$20,000 | Fair market value|$10,000 |$10,000 | Loss|$12,000 |$10,000 | AGI||$50,000 | Less: Business loss|| (12,000)| Modified AGI||$38,000
FIN- 515: Managerial Finance Homework 2: Chapter 3 Problems: (3-1) Days Sales Outstanding: Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $400,000 (3-2) Debt Ratio: Vigo Vacations has an equity multiplier of 2.5.
Again, note that the actual state rate is reduced by 25% to allow for the deductibility of state income taxes on the federal income tax return. If Dana’s state tax rate increases to 10%, corporate bonds are still superior to Treasury bonds. 50. [LO 1] At the beginning of his current tax year David invests $12,000 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $700 in interest ($350 every six months) from the Treasury bonds during the current
2a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $30,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $24,000. The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month.
The accounts payable at the Fiscal Year End increased by almost 200%. You should as mentioned in the paragraph above use these additional funds to reduce the payables and to be able to take advantage of the accounts from your supplies. Also you purchased items for your inventory with installment payments made available to you from your suppliers. What I recommend is that not to purchase items with an installment plan but to purchase less items and take the discounts by paying for the items within the time period allotted to the discounts. The line of credit at the bank has almost reached
As Bernadette’s AGI ($103,000) is less than $160,000, Bernadette qualifies for a $2,500 American Opportunity credit. The lifetime learning credit is available per taxpayer on the first $10,000 of qualifying tuition expenses. Accordingly, her tuition ($2,000) would qualify for the credit during 2011. Therefore, Bernadette’s maximum lifetime learning credit would be $400 (20% × $2,000) for 2011. However, the $400 maximum credit would have to be reduced by $20 since her $103,000 AGI exceeds the threshold level of $102,000 for married
She was an older lady that just wanted to financially help out friends and family. A gain of only two-thousands dollars certainly does not seem like she was motivated by financial gain. The fact that Griffin committed fraud against the IRS gave her the benefit of a delayed prosecution. These fraudulent tax credit were processed in 2009. It took almost two years to discover the wrongdoings.
,Sarah L. G January 6, 2013 Written Assignment #1 1. A) $1,000 with 5% interest after 10 years gives you $1,628. Therefore, you would gain $628 in interest. B) If the interest is withdrawn each year, a total of $500 would be earned because the $1,000 investment would earn $50 of simple interest each year. C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years.