In your personal portfolio account, not a qualified 401K retirement account, you get paid a dividend and it automaticallygets reinvested, (meaning you buy more of this stock or fund), but it never touches your hands or enters into your bankaccount; therefore what does that mean from a tax liability standpoint at the end of the year.O Since the money never passed through your bank, you do not owe taxes on that money in that yearO It never entered your bank account, but the dividends are taxed in the year it was receivedO Since its a dividend, those have already been taxed at the corporate level so you owe no taxesO Since its a dividend, you pay taxes when you withdraw that money

Dividend - It is the amount of profit distribution by the company to tis shareholders. It will on…

Answered: In your personal portfolio account, not…

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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Answer the following a. If Kathleen receives a $17,000 distribution from her traditional 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? b. If Kathleen receives a $17,000 distribution from her Roth 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? c. If Kathleen retires from MH and then receives a $17,000 distribution from her traditional 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution?
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Imagine that you have worked every summer for the last four years in order to save money to buy a car. You have $23,000 deposited in a savings account at your local bank. One day, you turn on the news and discover that the stock market is crashing and people are rushing to banks to withdraw all of their money. Your best course of action is to:
the concept "pay yourself first". With this in mind, what is your advice to someone on paying off credit card debt and investing for their retirement? Do you feel as though they should pay off all credit card debt before investing for their retirement or is it best to start investing for retirement as soon as possible? Why? * 350 word minimum
H5.
You and your friend Amy, while discussing your tax class, were surprised to learn that a substantial amount of income goes unreported each year by taxpayers. When taxpayers do not report all their income, the missing income must be replaced by imposing higher taxes on current taxpayers. Consider a time when you were trying to decide whether something should be put on your income tax return or not. Explain the differences between tax avoidance and tax evasion, and discuss the rewards of tax avoidance and the penalties of tax evasion.
Last year, lana purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected. a.$7,000 gain b.$3,000 loss c.$13,000 loss d.$2,000 gain
A taxpayer pulled out $85,000 from their retirement plan to cover living expenses in TY2020 due to loss of income related to the COVID-19 pandemic. Assuming that they did not opt to tax all income in TY2020; What is the amount of the retirement income they will report in TY2021? Select one: a. $42,500 b. $28,333 c. $21,250 d. $0
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Chapter 1 TRP 1-3 Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Jin Xiang is single and lives at 2468 North Lake Road in Deerwood, MN 56444. Her SSN is 412-34-5670. She worked the entire year for Lakeland Automotive. The Form W-2 from Lakeland contained information in the following boxes: Wages Federal W/H Social security wages Social security W/H (box 1) = (box 2) = (box 3) = (box 4) = (box 5) = Medicare W/H (box 6) Medicare wages = $ 42,851.89 $ 4,583.91 $ 42,851.89 $ 2,656.82 $ 42,851.89 $ 621.35 On the weekends, Jin worked at Parts-Galore, a local auto parts store. The Form W-2 from Parts-Galore contained information in the following boxes: Wages (box 1) = Federal W/H (box 2) = Social security wages (box 3) = Social security W/H (box 4) = Medicare wages (box 5) =…
Would you be more favorably inclined to advise a 30-year-old individual to establish a traditional deductible IRA or a Roth IRA? Explain. Consider any tax problems involved if the IRA funds are needed before age 59 1/2. Would your answer change for a 55-year-old individual? C Would you be more favorably inclined to advise a 30-year-old individual to establish a traditional deductible IRA or a Roth IRA? Consider any tax problems involved if the IRA funds are needed before age 59 1/2. Most tax advisors would advise a 30-year old individual to establish O A. a Roth IRA rather than a traditional deductible IRA. The major reason is that even though the contributions to the Roth IRA are nondeductible, the contributions and earnings grow tax-free. Since the 30-year old has nearly 30 years before distributions are eligible to be made, the Roth IRA should experience significant growth and all future distributions are not subject to tax. Should an emergency occur and the money in the Roth IRA is…

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