Problem 12-9 Estimating Life Insurance Needs Using the DINKMethod [LO12-2]You are a dual-income, no-kids family. You and your spouse have the following debts:Mortgage = $260,000; Auto loan = $11,500; Credit card balance = $2,250; and otherdebts = $6,500. Further, you estimate that your funeral will cost $6,000. Your spouseexpects to continue to work after your death. Using the DINK method, what should beyour need for life insurance?Answer is complete but not entirely correct.Total insurance need$ 146,125 ×

DINK = dual income, no kids.The DINK method is the method used where both persons earn income and it…

Answered: You are a dual-income, no-kids family.…

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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c. How much will the family receive (to the nearest dollar)? 647.51/1-6 1-(1.005264 .OOS 647.51.146.4 = 94795.46 150000-94795.46-55204.54₁,6 = 33122.72 4. A couple are planning for retirement. They plan to retire at age 70. At that time they wish to be able to withdraw $7500 per month from their retirement account for a period of 25 years, reducing the balance to zero. How much should they start saving now in an account that pays 7.54% compounded monthly to achieve their goal? Assume that they will be able to earn at least 7.54% interest compounded monthly from now until they are age 95. nt How much interest is earned over the 65 year period? A = P(1 + £ ) m² FV= PMT ((1+1)^-1) 7500 (1.076+25-1)
1. Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2021. Robert has an operation on his big toe in 2021 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2021? a.Robert must claim the $1,200 premium and the $6,800 insurance payment as income. b.Robert must claim the $1,200 premium paid by his employer as income. c.Robert must claim the $6,800 paid by the insurance company for the operation as income. d.None of these events are taxable on his 2021 return. 2. Electronically filed tax returns: a.Have error rates similar to paper returns. b.Offer faster refunds than paper returns. c.May not be transmitted from a taxpayer's home computer. d.Constitute less than 50 percent of the returns filed with the IRS. 3. John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,400 of…
Marie wants to provide retirement income for her dependent parents for 35 years should she die. Marie earns $67,500 and feels that her parents could live on 65% of that amount. If the insurance funds could be invested at 5%, how much life insurance does she purchase using the desired income method? Group of answer choices $1,273,499 $1,450,087 $932,743 $877,500
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?
Your 55-year old client,Gertrude,has income of $24,054 derived from her rental incomeshe receives from a 4-unit apartment building.Gertrude has no other income.What amount of deductible contribution can this taxpayer make to a Traditional IRA?
Daryl is a single 25-year-old with no children. He has $75,000 in unpaid student loans, $10,000 in a savings account. His employer offers $50,000 of annually renewable term life insurance to him at no cost as an employee benefit. How much additional life insurance should he purchase? O $65.000. O $0. O $15.000. O $25,000.
Please do not give solution in image format ?
Benjamin has the following dependents. child age 19 child age 15 mother age 67 How may of these dependents qualify for the $500 nonrefundable Credit for Other dependents in 2021?
Jesus and Victoria Gonzales' filing status is married filing jointly. They provide care for Victoria's aging parents who both qualify as their dependents. Their adjusted gross income is $410,000. How much of the credit for other dependents is phased out? OA) $1,000 OB) $250 OC) $0 OD) $500

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