You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freakstreet sweeper accident. In the trial, doctors testified that it will be five years before theplaintiff is able to return to work. The jury has already decided in favor of the plaintiff. Youare the foreperson of the jury and propose that the jury give the plaintiff an award tocover the following: (a) The present value of two years' back pay. The plaintiff's annualsalary for the last two years would have been $34,000 and $37,000, respectively. (b) Thepresent value of five years' future salary. You assume the salary will be $41,000 per year.(c) $100,000 for pain and suffering. (d) $13,000 for court costs.Assume that the salary payments are equal amounts paid at the end of each month. Ifthe appropriate rate you choose is an EAR of 7 percent, what is the size of thesettlement? (Do not round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)Size of the settlementIf you were the plaintiff, would you like to see a higher or lower interest rate?O Higher interest rateO Lower interest rate

The value of the settlement can be calculated using the time value of money concept. The future cash…

Answered: You are serving on a jury. A plaintiff…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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11. Olabisi operates a lawn care service in southeastern Missouri. Olabisi incurs $63,000 of expenses determining the feasibility of expanding the business to southwestern Missouri. If Olabisi expands the business, the $63,000 is deductible in the current year. If Olabisi does not do so, then the $63,000 must be amortized over a 180-month period. True False
You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following: (a) The present value of two years' back pay. The plaintiff's annual salary for the last two years would have been $33,000 and $36,000, respectively. (b) The present value of five years' future salary. You assume the salary will be $40,000 per year. (c) $100,000 for pain and suffering. (d) $12,000 for court costs. Assume that the salary payments are equal amounts paid at the end of each month. If the interest rate you choose is an EAR of 8 percent, what is the size of the settlement? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Size of the…
-Betty is an unmarried attorney. During the year a hurricane completely destroys her home, which had a basis of $60,000. The value of her home before the tornado is $100,000 and the value afterwards is $35,000. Betty's home is located in a federally declared natural disaster area. Her AGI is $50,000. What is the amount that Betty can deduct after limitations? Group of answer choices $29,900. $54,900. $59,900. $65,000.
2. On November 5, 2021, a DEF Corporation's truck was in an accident with an auto driven by Mr. Dela Cruz. DEF received notice on January 12, 2022 of a lawsuit for P700,000 damages for personal injuries suffered by Mr. Dela Cruz. DEF Corporation's counsel believes it is probable that Mr. Dela Cruz will be awarded an estimated amount in the range between P200,000 and P450,000, and that P300,000 is a better estimate of potential liability than any other amount. DEF's accounting period ends on December 31, and the 2021 financial statements were issued on March 2, 2022. What amount of loss should DEF accrue at December 31, 2021?
You are the tax supervisor at a local tax return preparation firm. Suzanne and her husband Steve have been working with the local fire department for 8 years. They have a total income after adjustments (reported on line 11 of the form 1040) of $160,000. After reviewing the preparation of the return, you notice there are a few things not taken into consideration for her tax return preparation. For each of the following questions, provide where the change on the tax return would occur and how much would it effect their taxable income, if they had an effective tax rate of 21% and a marginal tax rate of 24%, prior to the change. The ROTH IRA contribution of $7000 for each of Suzanne and Steve. (5PTS) Fertility treatment for Suzanne, so she should conceive a child. The process is still going on, but in 2020, they spent $15,000 on treatments and racked up 300 miles going back and forth to hospitals. (5PTS) They made a charitable contribution for the Fireman’s Fund,…
Which of the following prizes or awards is not taxable? a.Prizes from a television game show. b.A $100 gift card received as a prize in a raffle run by the local school parentteacher organization. c.A crystal paperweight worth $125 given to an employee for achieving 10 years of service to the company. d.Awards for superior performance on the job. e.All of these choices are taxable.
Rebecca entered into a written contract to sell certain real estate to Mary, a minor, for $80,000, payable $4,000 on the execution of the contract and $800 on the first day of each month thereafter until paid. Mary paid the $4,000 down payment and eight monthly installments before attaining her majority. Thereafter, Mary made two additional monthly payments and caused the contract to be recorded in the county where the real estate was located. Mary was then advised by her attorney that the contract was voidable. After being so advised, Mary immediately tendered the contract to Rebecca, together with a deed reconveying all of Mary’s interest in the property to Rebecca. Also, Mary demanded that Rebecca return the money she had paid under the contract. Rebecca refused the tender and declined to repay any portion of the money paid to her by Mary. Can Mary cancel the contract and recover the amount paid to Rebecca? Explain.
Milly, the wife of a notorious criminal and underworld gang leader, has signed a contractwith a newspaper for the sole rights to her story, “My Life as a Crime Boss’ Moll”. Under thecontract, the newspaper was to pay the full sum of $500,000 after the completion of thewriting of the articles and the publication of the first part of the series, which occurredduring the current income year. However, on the instruction of the taxpayer, only $50,000was paid into her account; the remainder of the sum remained unpaid at the end of theincome year.a. Discuss what part, if any, of the total contract value of $500,000 is assessable in thecurrent income year. Give reasons for your answer with reference to relevantlegislation, case law and any relevant ATO issued guidance.

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