Iris collected $150,000 on her deceased husband's life insurance policy. The policy was purchased by the husband's employer under a group policy. Iris's husband had included $5,000 in gross income from the group term life insurance premiums during the years he worked for the employer. She elected to collect the policy in 10 equal annual payments of $18,000 each.a. None of the payments must be included in Iris's gross income.b. The amount she receives in the first year is a nontaxable return of capital.c. For each $18,000 payment that Iris receives, she can exclude $500 ($5,000/$180,000 × $18,000) from gross income.d. For each $18,000 payment that Iris receives, she can exclude $15,000 ($150,000/$180,000 × $18,000) from gross income.e. None of these.

Answers

Answer 1

Answer:

Answer:

d. For each $18,000 payment that Iris receives, she can exclude $15,000 ($150,000/$180,000 × $18,000) from gross income.

Explanation:

The life insurance proceeds of $150.000 are excluded from Iri's gross income. The income proportion of each annuity payment is $3.000 (18.000 - 15.000 recovery of capital). Which will be included in gross income.

The recovery of capital of each annuity payment is $15.000 [(150.000/180.000]. Which will be excluded.

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One element in preparing a financial plan for a client is to determine the appropriate type and amount of life insurance. If a client is conservative, 30 years old, and married with 2 young children, whose income is unpredictable, the IA may recommend what type of life insurance policy?
Sales to customers who use bank credit cards such as mastercard and visa are usually recorded by:a. Debit to Cash and a credit to Sales b. Debit to Cash, credit to Credit Card Expense, and a credit to Sales c. Debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales d. Debit to Sales, debit to Credit Card Expense, and a credit to Cash
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Hammer Time Company sells hammers that it purchases at a cost of $5. Hammer Time sells the hammers for $15. Last year, it sold 12,000 hammers. The company estimates that it can sell 5,000 more hammers than last year if it decreases the selling price to $10 per hammer. What is the budgeted sales revenue if Hammer Time implements the decrease in selling price?

Answers

Answer:

The sales revenue would be 170,000 if Hammer Time implements the decrease in selling price.

This would generate a decrease of $10,000 in the sales revenue

Explanation:

Understanding the way sales revenue is generated:

$Units Sold * Unit Price = $Sales Revenue$

If the selling price drops to $10

and units sold increase by 5,000

$(12,000 + 5,000) * ( 15 - 5 ) = 17,000 * 10 = 170,000$

Comparing with the previous year:

$12,000 * 15 = 180,000$

This policy decrease the sales revenue which makes the business less profitable.

To achieve the social optimum,the government could set a tax equal to ________ per unit sold. A) $6
B) $4
C) $2
D) $3
E) $5

Answers

Answer:

A) $6

Explanation:

The equilibrium price arises when the marginal cost of private i.e. demand is $12 and when the social production cost is to be considered then the equilibrium price is $18

So, to accomplish the social optimum, the government should set a tax of

= $18 - $12

= $6

This shifted the private marginal cost to the left and there is yield to the social optimum

Hence, the correct option is A. $6

Empirical evidence finds that the average propensity to consume is falling: A. for neither the short-run nor the long-run consumption.
B. for only the long-run.
C. for both the short-run and the long-run.
D. for only the short-run.

Answers

Answer:

The correct option is D

Explanation:

Empirical evidence is the evidence which is defined as the information received through the senses, specifically by documentation as well as monitoring of patterns and behavior via experimentation.

APC stands for Average Propensity to Consume is the one which measures the percentage of income spent instead of savings. And it is evaluated by dividing the average household consumption by average household income.

So, if the empirical evidence states that the APC is falling or decreasing then it is only for short- run or short- period.

Answer:

D. for only the short-run.

initial cash investment of $388,000. The project will produce no cash flows for the first two years. The projected cash flows for years 3 through 7 are $69,000, $88,000, $102,000, $140,000, and $160,000, respectively. How long will it take the firm to recover its initial investment in this project?

Answers

Answer:

6.92 years

Explanation:

The payback period measures how long it takes for the amount invested in a project to be recovered.

The total cost of the project is $388,000.

Because the project generates no cash flow in the first and second year , the amount recovered would be 0.

In the third year, the amount recovered of $388,000 is $69,000. This reduces the cost of the project to $319,000.

In the fourth year , the amount recovered is $88,000. This reduces the cost of the project to $231,000.

In the fifth year, the amount recovered is $102,000. This reduces the cost of the project to $129,000.

In the sixth year, the amount recovered is $140,000. This covers the cost of the project and generates a profit of $11,000.

The amount is recovered in the 6th year + 129000/ 140,000 = 6.92 years

I hope my answer helps you

An underpinning of all commerce is effective communications, knowledge of where goods and services exit and where they are needed and the ability to communicate instantaneously across vast distances. Facilitation this movement into the future one can observe which shifts in examining world population and telecommunications?

Answers

Explanation:

Analyzing the historical context, it is possible to see how the new communication technologies were essential for the development of commerce. We currently live in the digital age, where almost every individual has access to a cell phone with internet and can communicate within seconds with any part of the world.

This technological revolution also had a great economic impact, generating new business models.

Companies have to adapt to this reality and insert themselves in the new market based on the internet, in creating relationships with consumers, in the practice of positive social and environmental attitudes, etc. Some companies needed to reinvent themselves to adapt to the new economic context, or they would lose strength in the market and would cease to exist.

The fact is that the technological revolution has impacted commercial relations around the world, today the consumer seeks the solution to his problems and desires, not being restricted to local consumption, which causes a new redesign of commerce and manages impacts on the economy of the world.

2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following: If your formulas are correct, you should get the correct answers to the following questions. a. What is the overall profit if all intermediate products are processed into final products?

Answers

Answer:

The answer is "74,000".

Explanation:

Please find the complete question in the attached file.

Profitability analysis of the total business:

The combined value for final sales $4,69,000$

Low cost of manufacturing end products:

Wool's cost $2,35,000$

Process cost of segregation $40,000$

Combined dyeing cost s $1,20,000 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3,95,000$

Gain benefit $74,000$

Final answer:

To determine the overall profit in industries that process joint products, calculate the difference between the sales value of the final products and the costs of the raw materials inputs.

Explanation:

In industries that process joint products, the overall profit can be determined by calculating the difference between the sales value of the final products and the costs of the raw materials inputs. To find out the overall profit, follow these steps:

Calculate the total sales value of the final products by summing up the sales values of all the final products.
Calculate the total costs of the raw materials inputs by summing up the costs of all the raw materials.
Subtract the total costs of raw materials inputs from the total sales value of the final products.

The resulting value will be the overall profit if all intermediate products are processed into final products.

Learn more about Overall profit in industries processing joint products here:

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