answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lisabon 2012 [21]
1 year ago
9

Lorraine invested $50,000 in a nonqualified deferred annuity at the age of 50. Three years later, the contract has grown to $64,

000, and Lorraine takes a $5,000 withdrawal. The contract is still in its accumulation stage. Which of the following statements is true? a. The withdrawal is fully taxable. b. The withdrawal is not taxable. c. $4,000 of the withdrawal is taxable; $1,000 is tax free. d. $1,000 of the withdrawal is taxable; $4,000 is tax free.
Business
1 answer:
stepan [7]1 year ago
3 0

Answer:

a. The withdrawal is fully taxable.

Explanation:

When withdrawing from annuity before the age of 59.5, the amount is taxable as income. There will also be a 10% tax penalty, and there may be a surrender charge by the insurance company.

Lorraine was 53 when the withdrawal was made, so she will be affected by these charges.

It is advisable to not make withdrawals till after the accumulation phase and above 59.5 years old. Then these penalties will not apply, onlybthe income tax on the withdrawal.

You might be interested in
Fred is a new employee who has been assigned to your team. This is the first time Fred has worked in your country. Aware that he
andreev551 [17]

Answer:

1 Ask Fred to run team meetings in order to get to know people more quickly.

Explanation:

This alternative is the most effective to help Fred adjusting to the team and build cultural competence. There are 2 reasons: 1. The other options did not allow Fred of socializing with team members and take a lesson of them. 2. Cultural competence goes beyond knowing business rules and how to make decisions.

7 0
1 year ago
The united states department of agriculture (usda) found that the proportion of young adults ages 20–39 who regularly skip eatin
deff fn [24]

Full Question

The united states department of agriculture (usda) found that the proportion of young adults ages 20–39 who regularly skip eating breakfast is 0.238. suppose that lance, a nutritionist, surveys the dietary habits of a random sample of size n=500 of young adults ages 20–39 in the united states.

Apply the central limit theorem for the binomial distribution to find the probability that the number of individuals, ?, in Lance's sample who regularly skip breakfast is greater than 122. You may find table of critical values helpful.

Express the result as a decimal precise to three places.

Answer:

The probability using the Normal Approximation that out of lance’s sample more than 122 people is 0.356

Explanation:

Given

n = Sample Size = 500

p = Probability = 0.238

Using the normal approximation to binomial distribution,

Let X = Event such that a person skips breakfast

If X ~ Binomial (n,p)

Using normal approximation

X ~ Normal (np,npq)

Where n = 500 and p = 0.238

So, X ~ Binomial (n,p) becomes

X ~ Binomial (500 , 0.238)

Using Normal Approximatiom

X ~ (119, 90.678)

The critical table is then constructed as follows;

Binomial --------- Normal

P(X = a) --------- P(a - 0.5 < X < a + 0.5)

P(X ≥ a) --------- P(X > a - 0.5)

P(X > a) --------- P(X > a + 0.5)

P(X ≤ a) --------- P(X < a + 0.5)

P(X < a) --------- P(X < a - 0.5)

Calculating the probability using the Normal Approximation that out of lance’s sample more than 122 people skips

This can be written as P(X > 122)

Looking at the critical table above.

P(X>a) ----- P(X>a + 0.5)

So,

P(X > 122) ---- P(X > 122 + 0.5)

P(X > 122) ---- P(X > 122.5)

Calculating Z score using

z = (x - u)/√σ²

X = 122.5

From X ~ (119, 90.678)

u =mean = 119

σ = standard deviation = √90.678

So,

Z = (122.5 - 119)/√90.678

z = 0.367550550865750

Z = 0.37 ---- Approximated

P(X > 122.5) = P(Z > 0.37)

P(X > 122.5) = 1 - P(Z<0.37) --- using z table

P(X > 122.5) = 1 - 0.6443

P(X > 122.5) = 0.3557

P(X > 122.5) = 0.356 -- Approximated

6 0
2 years ago
Prepare the issuer's journal entry for each of the following separate transactions. On March 1, Atlantic Co. issues 43,500 share
Tcecarenko [31]

Answer:

Atlantic Co. Journal entries

a.

March 1

Dr Cash$300,500

Cr Common Stock $174,000

(43,500×4)

Cr Paid-in Capital$126,500

($300,000-$174,000)

(Record of common stock for cash)

b.

April 1

Dr Cash$72,000

Cr Common Stock$72,000

(Record of common stock for cash)

c.

April 6

Dr Inventory $41,000

Dr Machinery$145,000

Dr Note Receivable$91,000

Cr Common Stock$55,000

(2,200 shares *$25 per share)

Cr Paid-in Capital $222,000

($145,000+$91,000+$41,000=$277,000-$55,000= $222,000)

(To record Insurance for Inventory, machinery,and notes receivable)

Explanation:

Since On March 1 Atlantic Co. was said to issues 43,500 shares of $4 par value common stock for $300,500 this means that we have to

Debit Cash with $300,500 and Credit Common Stock with $174,000(43,500×4) as well as Credit Paid-in Capital with $126,500 ($300,000-$174,000)

On April 1, OP Co as well issues no-par value common stock for $72,000 cash this means we have to Debit Cash with $72,000 and Credit Common Stock with the same amount .

While On April 6, based on information given to us about MPG transaction, we have to record Insurance for Inventory, machinery,and notes receivable by Debiting each and Crediting common stock and paid in capital .

4 0
1 year ago
True or false the risk premium is primarily concerned with business risk, financial risk, and inflation risk.
Nikitich [7]
The answer is true .
7 0
2 years ago
Given a stock index with a value of $1,200, an anticipated dividend of $45, and a risk-free rate of 6%, what should be the value
kramer

Answer: $1,227

Explanation:

The value of the futures contract should be calculated by the formula;

= Stock Index Value * ( 1 + risk free rate ) - dividends

= 1,200 * ( 1 + 0.06) - 45

= $1,227

8 0
1 year ago
Other questions:
  • Which of the following describes Hoover's philosophical approach to stimulating the economy?
    6·2 answers
  • What is the pv of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%?
    6·1 answer
  • Barber and Atkins are partners in an accounting firm and share net income and loss equally. Barber's beginning partnership capit
    9·1 answer
  • A manager wants to motivate the maintenance staff to be more productive. She starts by providing training and assures employees
    13·1 answer
  • Data were collected in twenty major urban areas on the percent of women in the labor force. Data were collected in 1968 and agai
    10·1 answer
  • You have the option to play tennis or a round of golf​ (but not​ both). The tennis match requires you to take 2 hours off from w
    8·1 answer
  • Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable expenses are $8 per uni
    6·1 answer
  • Attorneys Arianna and Alexander share an office that has a sign reading: "A &amp; A, a law firm." Their billing invoices have bo
    10·1 answer
  • Grant Company gathered the following reconciling information in preparing its July bank reconciliation: Cash balance per books,
    13·1 answer
  • Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $9,250,000 and a current sto
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!