Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in the sense that neither provides a tax deduction at the date of contribution. Which of the two types would be most advantageous to taxpayers and why

Answers

Answer 1
Answer:

Answer:

The query definition is mentioned in the clarification section following.

Explanation:

  • Throughout the particular instance of Roth IRA, more stability and fewer constraints along with existing lower federal premiums allow Roth IRA a safer long-term taxpayer option. It is recommended that the taxpayer should do so. Employers can opt for something like a non-qualified retirement package if the company wishes to attract prospective workers with extra perks.
  • It will include insurance as well as tax detention incentives along with extra payments. Non-qualified programs are more versatile which are used to accomplish specialized targets.

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A company advertises that its products are environmentally friendly in order to sell to climate-conscious consumers at a higher price. What is this practice called?
John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The Claussens anticipate that the store will generate cash flows of $70,000 per year for 20 years. At the end of 20 years, they intend to sell the store for an estimated $400,000. The Claussens will finance the investment with a variable rate mortgage. Interest rates will increase twice during the 20-year life of the mortgage. Accordingly, the Claussens’ desired rate of return on this investment varies as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Years 1-5: 7%Years 6-10: 10%Years 11-20: 12%Required: What is the maximum amount the Claussens should pay John Duggan for the hardware store?
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Which of the following reflects diseconomies of scale? A. Marginal product decreases as output increases
B. Short-run marginal cost increases as output increases
C. Long-Run marginal cost increases as output increases
D. Short-run average cost increases as output increases
E. As output doubles, long run total cost more than doubles

Answers

Answer:

B. Short-run marginal cost increases as output increases

Explanation:

diseconomies of scale are the cost disadvantages that economic actors accrue due to an increase in organizational size or on output, resulting in production of goods and services at increased per-unit costs.

Which of the following would you expect to decrease the demand for tennis racquets? A. A decrease in the price of tennis balls which are complements in consumption of tennis
B. An increase in the supply of tennis racquets
C. An increase in the price of tennis racquets
D. None of the above would decrease the demand for tennis racquets

Answers

Answer:

C) An increase in the price of tennis racquets

Explanation:

If tennis racquets become more expensive, the demand for them will decline, and people will try to supply this need with substitutes, for example, lacrosse raquets. The reason for this is that the classical supply and demand model tells us that demand and price are inversely correlated: if the price goes up, demand goes down, and viceversa.

Bohemian Company has 500,000 shares of no par common stock with a stated value of $8 per share issued and outstanding as of January 1, originally issued for $14 per share. During 2018, Bohemian Company had the following transactions involving its own stock: On March 6, acquired 27,965 shares of treasury stock at a cost of $12 per share On April 18, resold 5,280 shares of treasury stock at $19 per share. On June 11, resold an additional 2,210 shares of treasury stock at $10 per share If Bohemian uses the cost method of accounting for treasury stock, what will be the balance in additional paid in capital from treasury stock as a result of these transactions?

Answers

Answer:

$32540

Explanation:

The balance in additional paid in capital treasury stock as a result of the transactions is $32540.

The beginning balance was set at 0.

March 6 Acquisition in the treasury stock = 27965 shares × $12

In additional paid capital it is 0.

April 6 Reissued in treasury stock = 5280 shares × $12 while in additional paid capital = 5280 shares × $7 (19-12).

Please kindly see attachment to see the step by step working and the answer.

Answer:

Amount paid for the treasury stock on March 6 = $12*27,965 = $335,580

Total Amount realized on the resale of Treasury stock

April 18  =  5280*$19 =                                                          $100,320

June 11 =  2210*$10 =                                                             $ 22,100

                                                                                                  $122,420

cost of treasury stock sold

( $12 * 7,490)                                                                             (89,880)

Balance in additional paid in  capital from treasury stock      $32,540

Explanation:

Sheridan Company's trial balance reflected the following account balances at December 31, 2017: Accounts receivable (net) $37,000
Trading securities 11,500
Accumulated depreciation on equipment and furniture 29,000
Cash 33,000
Inventory 58,500
Equipment 45,000
Patent 9,000
Prepaid expenses 3,700
Land held for future business site 36,500

In Sheridan’s December 31, 2017 balance sheet, the current assets total is:

a. $212500.
b. $234300.
c. $146500.
d. $218300.

Answers

Answer:

$143,700

Explanation:

Current assets in Sheridan Company's trial balance are;

Accounts receivable (net) = $37,000

Trading securities = $11,500

Cash = $33,000

Inventory = $58,500

Prepaid expenses = $3,700

Total current assets = $37,000 + $11,500  + $33,000  + $58,500  + $3,700

                                 = $143,700

The right answer is not given as an option.

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $234,000 $204,000 $56,000 Equipment 84,000 152,000 27,000 Lily's taxable income before these transactions is $194,500. What are Lily's taxable income and tax liability for the year

Answers

Answer:

Tax Liability  = $59,170

Explanation:

Profit on building = 234,000-(204,000-56,000)

Profit on building = $86,000

Loss on equipment = 84,000 - (152,000-27,000)

Loss on equipment = $41,000

Net profit = Profit on building - Loss on equipment

Net profit = $86,000 - $41,000

Net profit = $45,000

Taxable income before transaction = $194,500

Total taxable income = $194,500 + $45,000

Total taxable income = $239,500

According to tax rules

Tax Liability  = ($194,500 - $85,650)28% + 17,442 + ($45,000)(25%)

Tax Liability  = $47,920 + $11,250

Tax Liability  = $59,170

Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in real GDP are often referred to as . True or False: Short-term fluctuations in real GDP are irregular and unpredictable. True False Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1950

Answers

Answer:

Consider the following explanations

Explanation:

Q1.) the short run fluctuations in the real GDp is known as the business cycles.

Q2.)yes , it is true that Short-term fluctuations in real GDP are irregular and unpredictable.

Q3.) A decrease in real GDPcoincide with declining personal income, and falling corporate profits. As incomes decline consumer spending also decline on retail goods and services and on durable goods, such asautomobiles. Households also contribute to declining investment expenditures by purchasing fewernew homes. As households spend less on products, firms cut back on industrial production and curbinvestment expenditures on physical capital.The unemployment rate tends to rise during periods of falling real GDP as firms cut back on productionand lay off workers. The unemployment rate tends to fall during economic expansions as firms expands production and hire additional workers.

Final answer:

Short-term fluctuations in real GDP are indeed irregular and unpredictable. In 1950, an increasing real GDP in the U.S. economy signifies a period of economic growth.

Explanation:

Short-term fluctuations in real GDP are indeed irregular and unpredictable. While real GDP tends to trend upward over time, it experiences ups and downs in the short run, which we call recessions.

In the context of the U.S. economy in 1950, if there was an increasing real GDP, it means that the economy was growing. This growth could be attributed to various factors such as increased consumer spending, business investment, government spending, or exports.

It could indicate a period of economic expansion with rising employment and incomes.

Learn more about Short-term fluctuations in real GDP and increasing real GDP in the U.S. economy here:

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