10:14 O 4G 4G Vo 0.00 A LTE2 KBs 73 01:56:00 Remaining Multiple Choice X purchased the life insurance of Y for 150,000. He continued the policy by paying P60,000 premium after which Y died. X collected the P1,000,000 proceeds of the policy. How much will X exclude from his gross income? O P60,000 O P150,000 O P210,000

10:14 O 4G 4G Vo 0.00 A LTE2 KBs 73 01:56:00 Remaining Multiple Choice X purchased the life insurance of Y for 150,000. He continued the policy by paying P60,000 premium after which Y died. X collected the P1,000,000 proceeds of the policy. How much will X exclude from his gross income? O P60,000 O P150,000 O P210,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

9 r
28 aw 11 ! 1 Ed Long promised to pay his son $370 semiannually for 11 years. Assume Ed can invest his money at 4% in an ordinary annuity. How much must Ed invest today to pay his son $370 semiannually for 11 years? (Do not round intermediate calculations. Round your answer to the nearest cent.) Present value 9 of 18 www www Next > MacBook Air AMA FG F6 6: F1 Q A 2 N -6 F2 W S #3 80 F3 E X $ 54 D DOD ODD F4 R C % 5 F < Prev F5 T V A 6 G Y & 7 B F7 17 H * 00 8 U DII FB J N ( 9 DD F9 FW K M -O 0 O F10 L V ,! P
Plz don't copy answer from Chegg pls little different answers i give up vote
3
True/Fahe True O Fahe Question 4 Carol and John shared equally inan inheritance Uhing his inheritance, John immediutely boughta 20-year annuity immedate with a annual payment of $2.000 each Carol put her inheritance in an investment fund earming an annual effective interest rate of 5. Two yearm later. Carol bought a 10 year ansuity-due with annual payment of Q The present value of both annuities was determined using an annual elfective interest rate of 4. Calculate Q $3.55 $342 $3.929 $3.988
3
man.2
palse step by step solution
3
Question 12 You just received an insurance settlement offer related to an accident you had three years ago. The offer provides you with three choices: • Option A: $1,500 a month for 6 years • Option B: $1,025 a month for 10 years • Option C: $85,000 as a lump sum payment payable today You can earn 7.5 percent on your investments and do not care if you personally receive the funds or if they are paid to your heirs should you die within the settlement period. Which option should you select and why is that option justified? 0000 1 pts Option A: It provides the largest monthly payment. Option A: It has the greatest value today. Option C: It is all paid today. Option B: It pays the largest total amount.
Exercise 10-3A (Algo) Determining the present value of a lump-sum future cash receipt LO 10-1 Gail Trevino expects to receive a $630,000 cash benefit when she retires seven years from today. Ms. Trevino’s employer has offered an early retirement incentive by agreeing to pay her $368,000 today if she agrees to retire immediately. Ms. Trevino desires to earn a rate of return of 10 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required a. Calculate the present value of the $630,000 future cash benefit. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Trevino accept her employer’s offer? (Round your final answer to the nearest whole dollar value.)
Problem 12-7 Calculating the Amount of Life Insurance Needed Using the Easy Method [LO12-2] Suppose that yours is a typical family. Your annual income is $55,000. Using the easy method, what should be your need for life insurance? (Do not round intermediate calculations.) Life insurance need $ 26,950