How large of a refund will they receive?
Q: Why should we call an annuity a periodic payment problem?
A: Annuity- An annuity is a contract between an individual and an insurance company in which the…
Q: What is an annuity? How does it differ from a lump sum payment?
A: Annuity:An annuity refers to a series of payments made at regular time intervals. These are…
Q: Calculate the loan amount on a purchase having a cash price of $47,900 with a down payment of…
A: Down Payment: The down payment is the portion of the purchase price that you pay out-of-pocket (as…
Q: would you approve or deny them in receiving this loan and why
A: Annual Income is $10,000, Monthly Debt payment 30% of monthly Income, FICO score is 550 Checking…
Q: Santana Rey is considering the purchase of equipment for Business Solutions that would allow the…
A: The payback period is the amount of time necessary for an investor to achieve a breakeven point or…
Q: What is the net present value of an annuity?
A: Net present value is defined as the temporal variation in the present value of cash inflows and…
Q: what is the best thing to consider in solving general ordinary annuity?
A: Annuity means a set of finite number of payments which are the same in size and made in equal…
Q: What’s the difference between an ordinary annuity and an annuity due?
A: Annuity is the fixed sum paid on annual basis. In other words, annuity is the series of payment…
Q: From the borrower’s standpoint, what are the advantages and disadvantages ofsecuring a loan?
A: Secured loans means offering an asset or property to the lender as a collateral against the funds…
Q: What is a deferred annuity?
A: Annuity: An annuity is a contract between an individual and an insurance company in which the person…
Q: What will be the Effect of the After-Tax Interest Cost on Loan Decisions?
A: Interest cost for loan borrowers depends mainly upon the rate of interest charged by lenders.…
Q: How can we determine the borrowing rate of return?
A: The borrowing rate of return is the return that is charged on the borrowings made by the firms or…
Q: How does the present value of a future payment change as the time to receipt islengthened? As the…
A: Present Value of a future payment is calculated based on the length of time and the interest rate…
Q: Can someone give an example or scenario of deferred annuity?
A: Under deferred annuity, the investment is made with the insurance company and any taxes to be paid…
Q: Student Loan. Is it worth it?
A: A loan suggests a borrowing by the student to finance the study costs.
Q: How does compound interest affect the loans you undertake? For example, how would this affect…
A: Interest is an additional value which is charged on borrowed or deposited amount. Interest can be an…
Q: amount to be paid in full settlement
A: FOB that is Free on Board is defined as the shipping term for the sale and purchase of goods. Under…
Q: What is the present worth of a uniform series payment?
A: The present worth is the value of an asset at present considering an assumed discount rate, which…
Q: What is a better investment Certificate of Deposit (CD) or Annuity and why?
A: Certificate of Deposit (CD) - Certificate of Deposit (CD) is a safe financial products i.e., low…
Q: What is the future worth of a uniform series payment?
A: The future worth is the value of an asset at a predefined future date which increases at a specific…
Q: What are a few things to consider before you cosign a loan?
A: Cosigning a loan means that in case the borrower is unable to make the payments due on loan the…
Q: What is an annuity?
A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…
Q: How long does it take you to eliminate the debt?
A: The debt refers to the financial instruments which are bought by investors, or corporations, or…
Q: Which factor sets an upper limit on how much can be paid for savings?
A: The expected return seems to be the benefit or disadvantage anticipated by a participant on…
Q: Why might a borrower be willing to pay a higher price for a home with an assumable loan?
A: An assumable loan is a loan that can be taken over by a purchaser, who may then continue making…
Q: Explain the Market Value of a Loan?
A: The market price of Debt refers to the value investors would be willing to shop for a company’s debt…
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- During the last five months of the year, Dwana opens a new Internet telecommunications business called Dwan-Com. Dwan-Com bills 50,000 of revenues, but receives only 40,000 cash. Dwan-Com incurs 3,000 of supply expenses, and 41,000 of labor costs. Dwan-Com pays for 2,200 of the supplies and 38,000 of the labor costs in the current year. a. What is Dwan-Coms taxable income if it elects the cash method of accounting? b. What is Dwan-Coms taxable income if it elects the accrual method of accounting? c. What method of accounting do you recommend that Dwan-Com elect?How much taxable income should each of the following taxpayers report? a. Kimo builds custom surfboards. During the current year, his total revenues are 90,000, and he incurs 30,000 in expenses. Included in the 30,000 is a 10,000 payment to Kimos five-year-old son for services as an assistant. b. Manu gives hula lessons at a local bar. During the current year, she receives 9,000 in salary and 8,000 in tips. In addition, she engages in illegal behavior, for which she receives 10,000.Leroy and Amanda are married and have three dependent children. During the current year, they have the following income and expenses: Salaries 120,000 Interest income 45,000 Royalty income 27,000 Deductions for AGI 3,000 Deductions from AGI 9,000 a. What is Leroy and Amandas current year taxable income and income tax liability? b. Leroy and Amanda would like to lower their income tax. How much income tax will they save if they validly transfer 5,000 of the interest income to each of their children? Assume that the children have no other income and that they are entitled to a 1,050 standard deduction.
- Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they have AGI of $80,300. They have excess depreciation on real estate of $67,500, which must be added back to AGI to arrive at AMTI. The amount of their mortgage interest expense for the year was $25,000, and they made charitable contributions of $7,500. If Otto and Monica's taxable income for the current year is $47,800 determine the amount of their AMTI. _______________________________________________________________________Paul Barrone is a graduate student at State University. His 10-year-old son, Jamie, lives with him, and Paul is Jamies sole support. Pauls wife died in 2018, and Paul has not remarried. Paul received 320,000 of life insurance proceeds (related to his wifes death) in early 2019 and immediately invested the entire amount as shown below. Paul had 42,000 of taxable graduate assistant earnings from State University and received a 10,000 scholarship. He used 8,000 of the scholarship to pay his tuition and fees for the year and 2,000 for Jamies day care. Jamie attended Little Kids Daycare Center, a state-certified child care facility. Paul received a statement related to the Green bonds saying that there was 45 of original issue discount amortization during 2019. Paul maintains the receipts for the sales taxes he paid of 735. Paul lives at 1610 Cherry Lane, Bradenton, FL 34212, and his Social Security number is 111-11-1111. Jamies Social Security number is 123-45-6789. The university withheld 2,000 of Federal income tax from Pauls salary. Paul is not itemizing his deductions. Part 1Tax Computation Compute Pauls lowest tax liability for 2019. Part 2Tax Planning Paul is concerned because the Green bonds were worth only 18,000 at the end of 2019, 5,000 less than he paid for them. He is an inexperienced investor and wants to know if this 5,000 is deductible. The bonds had original issue discount of 2,000 when he purchased them, and he is curious about how that affects his investment in the bonds. The bonds had 20 years left to maturity when he purchased them. Draft a brief letter to Paul explaining how to handle these items. Also prepare a memo for Pauls tax file.Cooper and Brandy are married and file a joint income tax return with two separate Schedule Cs. Cooper is an independent security specialist who spent $395 on uniforms during the year. His laundry expenses for the uniforms were $175 for this year, plus $65 for altering them. Brandy works as a drill press operator and wears jeans and a work shirt on the job, which cost $175 this year. Her laundry costs were $50 for the work clothes. Brandy is also required by state regulators to wear safety glasses and safety shoes when working, which cost a total of $115. How much is Cooper's total deduction on his Schedule C for special clothing and uniforms? $_____________ How much is Brandy's total deduction on her Schedule C for special clothing and uniforms? $_______________