TABLE ACombined Federal & Quebec Tax Brackets and Tax Rates2021 Marginal Tax Rates2020 Marginal Tax RatesCanadian DividendsCanadian DividendsOther CapitalOther CapitalIncome GainsNon-IncomeGainsNon-EligibleEligible2021 Taxable IncomeEligible2020 Taxable IncomeEligible27.53% 13.70% 4.53%18.37%|27.53% 13.76% 4.53%first $45, 105first $44,54517.50%over $45,105 up to $49,020 32.53% 16.20% 11.43%over $49,020 up to $90,200 37.12% 18.50% 17.77%24.12%over $44,545 up to $48,53532.53% 16.26% 11.43%23.25%29.40%over $48,535 up to $89,08037.12% 18.56% 17.77%28.53%over $90.200 up to $98,04041.12% 20.56% 23.29%34.00%over $89,080 up to $97,06941.12% 20.56% 23.29%33.13%over $08,040 up to $109,755 45.71% 22.86% 29.62%39.28% over S97,089 up to $108,390 45.71% 22.86% 29.62%38.41%over $109,755 up to $151,978 47.46% 23.73% 32.04%41.30% over $108,390 up to $150,473 47.46% 23.73% 32.04%40.42%over $151,978 up to$216,511(1)over $150,473 up to$214,368(1)50.23% 25.12% 35.86%44.48%50.15% 25.07% 35.75%43.51%over $216,51153.31% 26.65% 40.10%48.02%over $214,36853.31% 26.65% 40.10%47.14% A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for$15.75/share. Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000shares on November 30, 2021, when the share price was at $9.55/share. His investmentbroker counselled him not to sell as the fund was a back-end loaded fund.Year funds are redeemed/soldDeferred sales chargeWithin the first year6%In the second year5%In the third year4%In the fourth year3%In the fifth year2%In the sixth year1%After the sixth year0%a) What is the amount that Max will receive for the sale of these shares (ignoreincome taxes)?Calculate the amount that Max will receiveApplicable charge=5%Number of shares to be sold=3000The investment value of these shares=3000*15.75=$47,250The back end charge=$47,250*5%=$2,362.5The fund received on selling=3000*$9.55=$28,650Net receipt=28,650-2,362.5-$26,287.5b) Knowing that capital losses are applied against capital gains, what would be theoverall taxes payable if Max sold shares in another company called Save The DayInc. which resulted in a capital gain in 2021 of $50,000 and the shares in point a)?Max is a resident of Quebec and in the highest tax bracket. See Table A.Calculate the amount of taxes payable on the sale of the shares:

Income tax is based on income. Suppose a person has salary income, capital gain income, house rent…

Answered: A year and half ago, Max purchased…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for $15.75/share. Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Within the first year In the second year In the third year In the fourth year In the fifth year In the sixth year After the sixth year Deferred sales charge 6% 5% 4% 3% 2% 1% 0% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)? Calculate the amount that Max will receive:
The Market Edge Mutual Fund charges a 3 percent back-end load. Todd invested $2,500 in this fund sixteen years ago. Today, the total NAV value of his shares is $9,948 so he decided to withdraw the entire amount and take a month's vacation to tour South America. How much did Todd receive when he made his withdrawal? O $9,948.00 O $10,246.44 O $9,873.00 O $10,023.00 O $9,649.56
Your friend never took a personal finance class, but found out you did. So he comes to you for advice. He has two funds offered through his employer. One is a high growth mutual fund with 10% growth. The other is a moderate growth index fund offering 7% growth. At first glance it seems like an obvious choice, but the mutual fund is taking a 2.7 % fee of your friends $500 deposit, while the index fund is taking only a 0.7% fee. Over his 40 year career, what is the future value of the high growth fund after accounting for the fee? I A) $142,832.61 B $1,514,331,61 C) $1,028,330.61 D $1,428,328.61 E $428,332.61
Mary is newly hired. Her company offers 4 choices for her 401-K plan, three of which are bond and one is equity. Mary allocates 25% to each fund. This is an example of Forecasting errors (Memory Bias) Overconfidence Conservatism Representativeness Bias Framing Mental Accounting Regret Avoidance Loss Aversion (Prospect Theory)
Investor Matt has $661,000 to invest in a CD and a mutual fund. The CD yields 7.3% and the mutual fund yields an average of 7.7%. The mutual fund requires a minimum investment of $20,000, and Matt requires that at least 4 times as much money be invested in the CD as in the mutual fund. You must invest in order to maximize his return. What is the maximum return? Enter 0 if no investment can be made satisfying the requirements. $ . Round to the nearest cent.
Mr. Jonas invested a total of &100,000 in three mutual funds: a growth fund that lost 8%, a balanced fund that gained 3%, and a bond fund that gained 2%. As a result, he lost $1600 on his investment. If he invested $20,000 more in the growth fund in the bond fund, how much did he invest in each fund?
A pension fund manager decides to invest a total of at most $30 million in US treausry bonds paying 6% annual intrest and in mutual funds paying 9% annual interest. He plants to invest at least $5 million in bonds and at least $15 million in mutual funds. Bobds have a initial fee of $100 per million dollars while the fee for mutual funds is $200 per million. the fund manager is allowed to spend no more than $5000 on fees. 1.How much should be invested in eacg ot maximise interest A-Amount to be invested in treasury bonds B-Amount that should be invested in mutual funds C-What is the maximum annual interrst
On January 1, 2020, Simon Love's portfolio of 15 common stocks had a market value of $263,000 At the end of May 2020, Simon sold one of the stocks, which had a beginning-of-year value of $26,400, for $31,000. He did not reinvest those or any other funds in the portfolio during the year. He received total dividends from stocks in his portfolio of $12,100 during the year. On December 31, 2020, Simon's portfolio had a market value of $246,000. Find the HPR on Simon's portfolio during the year ended December 31, 2020. (Measure the amount of withdrawn funds at their beginning-of-year value.) Simon's portfolio HPR during the year ended December 31, 2020, is %. (Round to two decimal places.)

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