3a. 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 $45,000 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 $36,000. There is no loan period for the $45,000 car that would be under our $500
By the end of 2013 David’s stock basis is zero and the basis in his note has been reduced to $8,000. During 2014, the company’s operating income is $10,000. The company makes 2014 distributions to David of $11,000. David reports a(n): | | a) | $1,000 LTCG. | | | | b) | $3,000 LTCG.
1. If the Hunter Corp. has an ROE of 13 and a payout ratio of 30 percent, what is its sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate ____% 2. The most recent financial statements for Williamson, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $ 6,700 Assets $22,050 Debt $ 8,050 Costs 3,850 Equity 14,000 Net income $ 2,850 Total $22,050 Total $22,050 Assets and costs are proportional to sales.
She devotes none of her time to the management of the office building. She has a property management firm make all management decisions for her. During 2012, she incurred a loss, for tax purposes, of $30,000 on the office building. How must Mary Beth treat this loss on her 2012 tax return? Answer: Because Mary Beth does not devote more than 750 hours to office management she has to treat the income as passive.
Option two is the choice because the $2,716 savings difference in total interest from option two outweighs the $1,043 in interest savings from option one. Here the simulator reveals that loan option one is the correct choice. Loan option one is the best choice to solve the working capital shortfall because even though it has a higher interest rate, there is no prepayment limitation and has a total interest payment of only $32,603 after three months. The Financial Dictionary explains that “prepayment is good for the borrower because it relieves him/her of the debt, but it deprives the lender of interest he/she would have received otherwise” (Financial Dictionary, p. 1,
3) The available tax information would be provided via the finance statement. 4) The three years showing as underpaid are those included in the registration statement filed with the SEC. 5) The audit was described as having been done carefully and fairly. The implication is that in performing the audit, they followed the standard accounting procedures which includes a registration statement. “A registration statement contains audited financial statements, including balance sheets for a two year period and income statements, statements of retained earnings, and statements of cash flows for a three year period” (Whittington & Pany, 2012, p. 16).
Recall the CCA rules. If a positive balance remains in an asset class when all assets are sold, this positive balance may be viewed as a terminal loss and must be deducted in full from taxable income, or carried back three years, or carried ahead up to 20 years. Note: 1. You may do this question by hand or using Excel. 2.
The Roth IRA had to open at least five tax years. When a qualified distribution occurs, the earnings and contributions are tax free without penalty. Now if a non-qualified distribution occurs, there could be a 10% penalty, unless the owner is eligible for one of the eight exemptions spoken about earlier. The owner is still allowed to contribute after the age 70 ½, but is required to withdraw a certain amount at a specified time each
Explain the Federal Reserve’s current view about inflation Near-term inflation expectations as studied from the University of Michigan Surveys of Consumers in October continued to be well below the elevated levels seen in the spring, and now the expectations longer term inflation within the survey remained stable. Overall Inflation was expected to remain at certain levels consistent with or below rate as predicted earlier by the committee’s dual mandate. Below are the latest projections of the Federal Reserve Governors and reserve Bank presidents from the November 2011 meeting: |Table 1. Economic projections of Federal Reserve Governors and Reserve Bank presidents, January 2009 | |Percent
This was realized by the real gross domestic product and how it did not attain its pre-recession peak by the second quarter of 2011 (The Federal Reserve, 2011). The first quarter GDP growth was downward, consumer price inflation moderated, and long-run inflation expectations remained stable (The Federal Reserve, 2011). In June, the FOMC made decisions to maintain the zero to 0.25% target range for the federal funds rate (The Federal Reserve,