You bought a house in 2004 for $150,000. Sadly, you suffered an injury. Your doctor prescribes wateraerobics as your therapy and prescribes building a pool. You spend $31,000 to build the pool. Becauseyou built the pool your house now appraises for $165,000. Assume all of your other injury related costswere covered by your health insurance, which you pay $4,400 a year for. If your AGI is $200,000, whatis your allowable medical expense deduction?○ $40000$20,400$35,400$0$5,400

Here I suffered an injury and doctor prescribed water aerobics as physical therapy. So the cost of…

Answered: You bought a house in 2004 for…

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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Ray had a terminal illness that would require almost constant nursing care for the remaining two years of his estimated life, according to his doctor. Albert had a life insurance policy with a face amount of $100,000. He had paid $25,000 of premiums on the policy. The insurance company has offered to pay him $80,000 to cancel the policy, although its cash surrender value was only $55,000. He accepted the $80,000. Albert used $15,000 to pay his medical expenses. Albert made a miraculous recovery and lived another 20 years. As a result of cashing in the policy: a.Albert must recognize $55,000 of gross income, but he has $15,000 of deductible medical expenses. b.Albert must recognize $65,000 ($80,000 – $15,000) of gross income. c.Albert is not required to recognize any gross income because of his terminal illness. d.Albert must recognize $40,000 ($80,000 – $25,000 – $15,000) of gross income.
3. Johnathan was provided a private health care plan for his family. The employer paid $3000 of premiums for this plan. He also earned a cash bonus of $800 for being the hardest working employee during the year. Additionally, he received a large painting as a Christmas present from his employer, which has a value of $1250. Answer the question: Private health care plan is ??
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $54,000. The object is to save on horse transporter rentals.Marsha had been renting a transporter every other week for $219 per day plus $1.95 per mile. Most of the trips are 80 or 100 miles in total. Marsha usually gives Joe Laminitis, the driver, a $30 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.64 per mile. Insurance costs for Marsha’s transporter are $2,150 per year.The transporter will probably be worth $34,000 (in real terms) after eight years, when Marsha’s horse Spike will be ready to retire. Assume a nominal discount rate of 7% and a 4% forecasted inflation rate. Marsha’s transporter is a personal outlay, not a business or financial investment, so taxes can be ignored.Calculate the NPV of the investment. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
Below is your client’s actual list of her family’s unreimbursed medical ex-penses for the year. Of course she wants to deduct everything, so it’s up to you to tell her which items really are deductible as medical expenses. (Ignore the % of AGI floor.) My Family’s Medical Expenses: (A) Aspirin (B) Contact lenses (C) Medical marijuana (bought in Oklahoma – it’s legal!) (D) Veterinary bills (for “Whiskers” the cat, but she’s family, too!) (E) Acupuncture (it worked!) (F) Sunscreen (preventing skin cancer!) (G) Botox injections (Wonderful for my mental health – I look 10 years younger!) (H) Running shoes (heart health!) (I) Viagra (brought home from Mexico, much cheaper!) (J) Mileage for driving to/from doctors’ offices (K) Birth control pills (L) Parking at the hospital (visiting Aunt Mary) (M) Massage therapy (at the Elizabeth Arden “Red Door” Salon, wonderful!) (N) A book on meditation and self-hypnosis (I now feel so calm and serene!).…
Donna is 84 years old and needs to move to an assisted living care facility. Her health is not great, so you are using a life expectancy of 6 years. She has investments totalling $200,000 in mostly low yielding savings accounts. Her pension income amounts to $3,000 per month, received at the beginning of each month (this excludes any income from her investments). Donna has found several places to live but the monthly cost is quite high, and she doesn't know if she can afford any of them. Donna wants to know the maximum amount she can afford to spend per month (payment at beginning of month) if she has no other monthly expenses. Assume you can invest her $200,000 and earn 5% compounded monthly.
i need the answer quickly
Your parents have accumulated a $120,000 nest egg. They have been planning to use this money to pay college costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $15,000 to help her get started, and they have decided to take year-end vacations costing $10,000 per year for the next four years. How much money will your parents have at the end of four years to help you with graduate school? You plan to work on a master's and perhaps a PhD. If graduate school costs $26,353 per year, approximately how long will you be able to stay in school based on these funds? Use 9 percent as the appropriate interest rate throughout this problem. Round all values to whole numbers. Refer to this information to solve the rest of the questions. What are the funds available after the Nail Salon? ○ $100,000 ○ $105,000 ○ $72,000 $98,500 What is the Present Value of the vacations? $32,397 $37,900 $45,000…
-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.
Jane is a roofing contractor. Jane's friend needed a new roof but did not have the cash to pay. Jane's friend instead paid with a used truck that Jane could use in her roofing business. The truck had originallycost the friend $17,500 but it was gently used and only worth $6,000. Jane did not actually need the truck and ended up selling it to a used car dealer for $5,200 a few months later. Explain what amount of gross income Jane must recognize as a result of the truck payment and why.
Lauren has an accident and goes to the hospital. All the procedures necessary to put Lauren back together again add up to $250,000. Which plan would have been the best for Lauren?
: "Home insurance and options" You own a house that costs $200,000 to build. You buy a $15,000 insurance policy to compensate you for damage to the house. The deductible is $25,000. (If your house suffers $4,000 damage from a storm, you pay for all repairs yourself. If the house suffers $45,000, in damage, you pay $25,000 and the insurance company pays the remaining $20,000.) (1) Graph the positions of the unhedged home, the home insurance and the hedged home position on the profit and loss diagram. In the diagram, specify the relevant values on the diagram. (2) To which trader type the insurance company belong? Explain your answer. a. Call buyer b. Call seller c. Put buyer d. Put seller
Your great-uncle Buford just passed on. You didn't even know you had a great-uncle Buford. In his will, he left you the proceeds from the sales of some land. It was just sold for $16,880. Unfortunately, you can't get your hands on the money for another 6 years (Uncle Buford thought you would just blow it all on partying with college friends if you got it now). The executor of Uncle Buford's estate tells you that the proceeds will be invested between now and when you get access to the proceeds in 6 years. If the proceeds are invested at 11.52% annually, how much will you have access to in 6 years? Please respond to the nearest penny.

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