What is the current share value of UniCredit Company's stock to an investor who has a required rate of return of 32 percent? The current dividend is $10.00(Do) and the dividends are expected to grow 12 percent per year for 4 years. At the end of 4 years, the investor expects to sell the security for $88.
A. $48.93
B. $55.96
C. $44.65
D. $62.51

Answers

Answer 1

the current share value of UniCredit Company's stock to an investor with a required rate of return of 32 percent is approximately $115.77. None of the provided answer options (A, B, C, D) match this value.

To calculate the current share value of UniCredit Company's stock, we can use the dividend discount model (DDM). The formula for DDM is:

Current Share Value = (Dividend / (Required Rate of Return - Dividend Growth Rate)) + (Expected Selling Price / (1 + Required Rate of Return)^n)

Given:

Dividend (Do) = $10.00

Dividend Growth Rate = 12%

Required Rate of Return = 32%

Expected Selling Price = $88

Number of years (n) = 4

Plugging in the values into the formula:

Current Share Value = ($10 / (0.32 - 0.12)) + ($88 / (1 + 0.32)^4)

Simplifying the equation:

Current Share Value = ($10 / 0.20) + ($88 / 1.338)

Current Share Value = $50 + $65.77

Current Share Value ≈ $115.77

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Related Questions

Product enhancements
A) do not really change the basic product.
B) include guarantees and warranties.
C) include features and options
D) reduce the number of target markets one product can satisfy.

Answers

Answer:

C or A

Explanation:

I could answer better with more context

The correct answer is C

Stephen owns a chemical plant. He is glad that his primary stakeholders are satisfied with the company's growth. However, he is concerned about pleasing the secondary stakeholders. How can he ensure the welfare of secondary stakeholders?

Answers

Answer: D. use a manufacturing process that is compliant with all state and federal regulations.

Explanation:

The options to the question are:

a. pay less taxes

b. substitute the existing labor power with machines

c. double the output of the manufacturing process by asking workers to work overtime

d. use a manufacturing process that is compliant with all state and federal regulations

e. organize picnics for employees

Since Stephen wants to ensure the welfare of secondary stakeholders, he should use a manufacturing process that is compliant with all state and federal regulations

The secondary stakeholders are the individuals or entities that the company doesn't have direct economic transactions with e.g. the government, environmental groups, media etc.

Therefore, to please the secondary stakeholders, he must abide to the necessary rules and regulations.

should you feel bad about quitting your job for more money when you like your job

Answers

Maybe if your new job is extremely boring or affects you in some way. But you shouldn’t feel bad since money can get you through rent and taxes and so on

Which best describes the facilities involved in the Healthcare cluster?

Some facilities are privately owned, some are funded and run by the government, and some are run by nonprofit organizations.
Some facilities are privately owned businesses that are owned by people who want to make money, and some facilities are nonprofit hospitals.
Most facilities are funded by taxes and run by the government, while a small few are privately owned facilities run by people who want to make money.
Many facilities are nonprofit clinics with the rest of the facilities owned and operated by private individuals to make a profit.

Answers

Answer: (C) Most facilities are funded by taxes and run by the government, while a small few are privately owned facilities run by people who want to make money.

Answer:

C. government

A person performs a cost-benefit analysis in order to:
A. calculate the expenses of multiple businesses competing in the
same market.
B. evaluate the possible positive and negative effects of different
economic decisions.
C. analyze economic data to reach general conclusions about a
country's economy.
D. determine the tax rates a business will pay depending on its
profits in a year.
o

Answers

Answer:

B. evaluate the possible positive and negative effects of different economic decisions.

Explanation:

Cost-benefit analysis (CBA) is used to examine and compare the cost associated with a project or task and the benefits derived from it.

Simply stated, cost-benefit analysis is a form of utilitarianism commonly used by individuals, business firms and government in the decision-making process, as all the cost incurred are determined and analyzed.

This ultimately implies that, it may be used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Cost-benefit analysis (CBA) sums the total cost associated with a project (activity) and compares this cost against the total benefits that would be generated. Thus, it helps in the decision-making process by comparing the net present value (NPV) of the cost of a particular project with the net present value (NPV) of its benefits.

Hence, a person performs a cost-benefit analysis in order to help him or her evaluate the possible positive and negative effects of different economic decisions with respect to an investment, project, activity, or programme.

Why is it common for producers of services to sell through short distribution channels directly to the end user

Answers

Answer: “The people providing the service often fo so by interacting directly with the user”

Explanation: just took the quiz

Answer: B. The people providing the service often fo so by interacting directly with the user

Explanation: I just took the quiz and the answer was correct

what led to pakistans economic crisis? what role did chinas belt and road initiative play

Answers

Pakistan's economic crisis was mainly driven by several factors, including fiscal imbalances, high inflation, and mounting external debt. The China-Pakistan Economic Corridor (CPEC), a key part of China's Belt and Road Initiative (BRI), played both positive and negative roles in Pakistan's economy.

On one hand, the CPEC brought infrastructure development and investment, contributing to economic growth.

On the other hand, the large-scale projects led to an increase in imports and external debt, contributing to the balance of payment crisis.

Overall, the CPEC's impact on the crisis was complex, but it was only one of several factors leading to Pakistan's economic challenges.

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You have collected the following cash flow data of Herman Miller Office Furniture for the year ended December 31, 2019Sale of a used Bus 45400Cash dividend 90000Purchase of land 28280Interest payment on debt 28260Cash Payment on Salary 90900Purchase of a New Drilling machine 66960Purchase of New Wood working machine 60000Repurchase of stock 85000Cash payments to Vendor 161600Cash collections from customers 393900Cash at the beginning of the year 400000Please answer the following questions:a . What is the net cash provided by or used in operating activities?(sample answer: -$135,000 or $135,000)b . What is the net cash provided by or used in investing activities? (sample answer: -$135,000 or $135,000)c . What is the net cash provided by or used in financing activities? (sample answer: -$135,000 or $135,000)d . What is the cash at the end of the year? (sample answer: -$135,000 or $135,000)

Answers

The net cash used in operating activities is -$135,600. The net cash used in investing activities is -$109,840. The net cash used in financing activities is -$23,260. The cash at the end of the year is $131,300.

a. The net cash provided by operating activities can be calculated by adding up the cash collections from customers and subtracting the cash payments on salaries and payments to vendors:

Net cash provided by operating activities = Cash collections from customers - Cash payments on salary - Cash payments to vendors

= $393,900 - $90,900 - $161,600

= -$135,600

Therefore, the net cash used in operating activities is -$135,600.

b. The net cash provided by or used in investing activities can be calculated by adding up the cash flows related to investing activities, such as the purchase of land, a new drilling machine, and new woodworking machine, and the sale of the used bus:

Net cash provided by investing activities = Sale of a used bus - Purchase of land - Purchase of new drilling machine - Purchase of new woodworking machine

= $45,400 - $28,280 - $66,960 - $60,000

= -$109,840

Therefore, the net cash used in investing activities is -$109,840.

c. The net cash provided by or used in financing activities can be calculated by adding up the cash flows related to financing activities, such as the cash dividend, repurchase of stock, and interest payment on debt:

Net cash provided by financing activities = Cash dividend - Repurchase of stock - Interest payment on a debt

= $90,000 - $85,000 - $28,260

= -$23,260

Therefore, the net cash used in financing activities is -$23,260.

d. The cash at the end of the year can be calculated by adding the net cash provided by operating activities, investing activities, and financing activities to the cash at the beginning of the year:

Cash at the end of the year = Cash at the beginning of the year + Net cash provided by operating activities + Net cash provided by investing activities + Net cash provided by financing activities

= $400,000 - $135,600 - $109,840 - $23,260

= $131,300

Therefore, the cash at the end of the year is $131,300.

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Mona Elliott’s gross pay is $33,500 a year. The state income tax rate is 3 percent of taxable wages. Elliott takes a single exemption for herself. Using Figure 2.1, how much is withheld a year for state income tax?

Answers

Answer: $960

Explanation:

Mona Elliott’s gross pay = $33,500

State income tax rate = 3%

Single exemption = $1500

The amount that'll be withheld a year for state income tax will be calculated as:

= Tax rate × (Gross pay - Single exemption)

= 3% × ($33500 - $1500)

= 3% × ($32,000)

= 3/100 × $32,000

= 0.03 × $32,000

= $960

The owner of the rapids river rafting company wants to advertise to a broader customer base as a way to increase revenue. Employees are a little resistant to his plan. What is one way he can persuade them that this is a good idea?

Answers

Answer:

Document ways diversity played a crucial role for business in the past

Explanation:

River rafting refers to the activity of moving quickly in a small boat along rivers

The owner of the rapids river rafting company wants to advertise to a broader customer base as a way to increase revenue.

But the employees are a little resistant to his plan.

For this document ways, diversity has played a crucial role in business in the past.

So, he can follow such ways.

2. What does AOC stand for?
d. Area of Concentration
c. Area of Careers
b. Awareness of Careers
na Awareness of College

Answers

Answer:

The answer is D. Area of Concentration

Explanation:

Area of concentration (AOC) must be listed along with a skill identifier (if applicable) and listed as the primary specialty.

The level of nitrogen oxides (NOX) and nonmethane organic gas (NMOG) in the exhaust over the useful life (150,000 miles of driving) of cars of a particular model varies Normally with mean 90 mg/mi and standard deviation 4 mg/mi. cars of this model in its fleet. company has 25 Using Table A, find the level L such that the probability that the average NOX + NMOG level x for the fleet is greater than L is only 0.03.
Give your answer to three decimal places.
L =

Answers

NOX and NMOG in the exhaust over the useful life (150,000 miles of driving)of cars of a particular model varies Normally with mean 90mg/ml.The level L is approximately 97.52 mg/mi.

To find the level L such that the probability that the average NOX + NMOG level x for the fleet is greater than L is only 0.03, we need to calculate the z-score corresponding to this probability and then convert it back to the original scale using the mean and standard deviation.

The z-score can be found using Table A (standard normal distribution table). We are interested in the area under the curve to the left of the z-score, so we subtract 0.03 from 1 to get 0.97.

Looking up the closest value to 0.97 in Table A, we find that the corresponding z-score is approximately 1.88.

Now, we can convert the z-score back to the original scale using the mean and standard deviation:

L = Mean + (z-score * Standard Deviation)

= 90 + (1.88 * 4)

= 90 + 7.52

= 97.52

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The GoGo had been variously described as combination of a hoverboard and a self-driving scooter. Weighing 18 pounds, it would be sold through wholesale distributors to retailers who would sell to final consumers. The GoGo would be initially priced at retail for $300.00. After discounts for distribution, the GoGo would deliver to Whoyser $176.88 revenue per unit. The $300 retail price was believed to be exceptionally low compared to early versions of the Segway Personal Transporter, which had been priced at around $5000. The market for the GoGo and its direct competitors was forecast to be 8,000,000 units annually in the GoGo's first selling year. Whoyser had direct variable manufacturing costs of $127.00 per GoGo, coupled with fixed manufacturing costs of $9,000,000 The annual advertising budget for the GoGo was $5,000,000. Direct management salaries and expenses totaled $350,000. The GoGo salespeople working for Whoyser were paid solely by a 10% commission on Whoyser's sales. Shipping costs, breakage and insurance were forecast to be $6.00 per unit.. what is the unit dollar contribution for a gogo?

Answers

The unit dollar contribution for the GoGo is $26.19. This means that for each unit sold, $26.19 contributes to covering the fixed costs of manufacturing, advertising, and management salaries and expenses, as well as generating profit for Whoyser.

The unit dollar contribution for GoGo can be calculated by subtracting the total variable costs per unit from the revenue per unit.

In this case, the total variable costs per unit include the direct variable manufacturing costs of $127.00, the shipping costs, breakage and insurance of $6.00, and the salespeople's commission of 10% of $176.88, which is $17.69. Therefore, the total variable costs per unit are $150.69 ($127.00 + $6.00 + $17.69).

The revenue per unit is $176.88, which is the selling price of $300.00 after discounts for distribution.

Subtracting the total variable costs per unit from the revenue per unit, we get the unit dollar contribution as follows:

Unit dollar contribution = Revenue per unit - Total variable costs per unit

Unit dollar contribution = $176.88 - $150.69

Unit dollar contribution = $26.19

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Part D Why did the head of the school first teach under a tree? ​

Answers

Answer:

The teacher taught under a tree because there were no school buildings.

Explanation: Plato

Answer:

no buildings

Explanation:

True/False? income from dividends is considered earned income if the stocks are listed on the public exchange.

Answers

Income from dividends is considered earned income if the stocks are listed on the public exchange. i.e. the given statement is false .

Dividends are payments made by corporations to their shareholders in exchange for their earnings. When a company makes a profit or has a surplus, it has the option of paying a portion of that earnings as a dividend to its shareholders. All extra money is gathered and put back into the business.

Both the profit from the current year and the retained profits from earlier years are available for distribution because a corporation is often not permitted to pay a dividend out of its capital. If the corporation has a dividend reinvestment plan, the money might be distributed to shareholders in cash, by issuing new shares, or by repurchasing existing shares. It's possible that valuables will occasionally be distributed.

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The role of corporate support in event marketing has
in the past few decades.
a. Increased
b. Decreased
C. Remained status quo
d. Developed

Answers

So the answer of the question is a
A.incrased

Sales taxes collected by a retailer are recorded by.

Answers

Answer:

There recorded by sales

Explanation:

Sales taxes collected by a retailer are recorded as credit to sales taxes payable under the current liabilities section on the balance sheet.

Sales taxes collected by a retailer are typically recorded by the retailer themselves for accounting and reporting purposes.

How is the sales tax collected

This is done to ensure compliance with tax regulations and to accurately track the amount of sales tax owed to the appropriate tax authority.

Retailers usually use point-of-sale (POS) systems or specialized accounting software to record sales transactions and calculate the sales tax amount. These systems are programmed to apply the appropriate tax rate based on the location of the sale and the type of product or service being sold.

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On January 1, 2011, Ellsworth Company completed the following transactions (use an 8percent annual interest rate for all transactions):a. Borrowed $2,000,000to be repaid in five years. Agreed to pay $150,000interest each year for the five years.b. Established a plant addition fund of $1,000,000to be available at the end of year 10. A single sum that will grow to $1,000,000will be deposited on January 1, 2011.c. Purchased a $750,000machine on January 1, 2011, and paid cash, $400,000. A four-year note payable is signed for the balance. The note will be paid in four equal year-end payments starting on December 31, 2011.1. In transaction (a), determine the present value of the obligation.2. In transaction (b), what single amount must the company deposit on January 1, 2011? What is the total amount of interest revenue that will be earned?3. In transaction (c), what is the amount of each of the equal annual payments that will be paid on the note? What is the total amount of interest expense that will be incurred?

Answers

In transaction (a), the total present value of the obligation is $2,043,678.14.
In transaction (b), the company must deposit a single sum that will grow to $1,000,000 at the end of year 10. In transaction (c), the amount of each of the equal annual payments that will be paid on the note is $139,258.18.

1. To determine the present value of the obligation in transaction (a), we need to calculate the present value of the $150,000 annual interest payments for five years and the $2,000,000 principal payment to be made at the end of year five.

Using an 8% annual interest rate, the present value of the interest payments is $574,349.58 and the present value of the principal payment is $1,469,328.56. Therefore, the total present value of the obligation is $2,043,678.14.

2. In transaction (b), the company must deposit a single sum that will grow to $1,000,000 at the end of year 10. Using an 8% annual interest rate, the single amount that must be deposited on January 1, 2011 is $463,193.51. The total amount of interest revenue that will be earned is $536,806.49 ($1,000,000 - $463,193.51).

3. In transaction (c), the amount of each of the equal annual payments that will be paid on the note is $139,258.18. The total amount of interest expense that will be incurred is $146,946.34. This is calculated by taking the total interest payable on the note ($249,946.34) and subtracting the interest payable in the first year ($103,000).

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Two accounts that would appear on the financial statements of a merchandising company that are not needed by a service company are:
A. cost of goods sold and inventory
B. cost of goods sold and depreciation
C. cost of goods sold and net income
D. inventory and depreciation

Answers

Cost of goods sold and inventory are two accounts that would appear on the financial statements of a retailing company but are not required by a service company. Thus, option a is correct.

What is service company?

An organisation that offers services makes money by offering such services to its clients rather than selling them products. A good illustration of a service company business is an accounting firm. By keeping books, auditing businesses and assets, and preparing income tax returns, accountants make money.

Airlines, banks, IT support organisations, law offices, plumbing repair shops, movie theatres, and management consulting firms are a few examples of pure service enterprises. A service-based business adds value to its customers by providing high-quality services. These businesses make sure that their clients or consumers believe their services are worthwhile by providing them with value.

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which of the following is a critical issue in sustainable development? question 1 options: labor and legal problems supply base optimization countertrade climate change

Answers

Last option. Climate change is a critical issue in sustainable development

What is climate change?

Long-term changes in temperature and weather patterns are referred to as climate change. These changes may be organic, but since the 1800s, human activity has been the primary cause of climate change. This is mainly because burning fossil fuels, such as coal, oil, and gas, releases gases that trap heat.

A long-term change in the typical weather patterns that have come to characterize local, regional, and global climates on Earth is referred to as climate change. The phrase is synonymous with a wide variety of observed outcomes that are a result of these changes.

A progressive change in all the interconnected weather components on our planet over the course of about 30 years is referred to as climate change. According to the evidence, the Earth is warming, and it is up to us to bring about the required changes for a healthier planet.

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you are an administrative assistant in the purchasing department. Another administrative assistant is getting married in three weeks. Rumor has it that after the wedding, she will not be returning, and two of your peers have come to you asking if it is true because they want to apply for her job. you have not seen an official announcement, however, the assistant did tell you that she plans not to come back. What should you say to your two coworkers?

Answers

In this situation, You should tell your coworkers that you are unsure and that it is not yet official announced.

Co - workers.

Co workers refers a person with whom one works, typically someone in a similar role or at a similar level within an organization.

Given,

Here we have given that, you are an administrative assistant in the purchasing department. And another administrative assistant is getting married in three weeks. There is a rumor has it that after the wedding, she will not be returning, and two of your peers have come to you asking if it is true because they want to apply for her job. Now, you have not seen an official announcement, however, the assistant did tell you that she plans not to come back.

Here we need to find how you should handle this situation.

While we looking into the given question, we have identified the following,

There are 2 administrative assistant in your company.

One is you and another one is a girl and she get married in three weeks. And she also planned to resign after her marriage but this resignation is not officially confirmed.

So, in this situation, two of your peer interested for the position and asking you about the recruitment process.

Here you have to reply the co workers that the resignation is not conformed and if it is officially announced they you have the option to apply for that position.

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What can hope do to change the numbers 2, 3, 5 and 6 to lowercase letters?

What can hope do to change the numbers 2, 3, 5 and 6 to lowercase letters?

Answers

Answer: D

Explanation:

Use the Mutlilevel List Icon

What does the concept of scarcity explain?choose three answers

Answers

The concept of scarcity explains:

why consumers are willing to pay high prices for items.why decisions must be made on how to use resourceswhy a single resource has more value than another resource.

Scarcity as an economic idea "refers back to the basic reality of lifestyles that there exists most effective a finite quantity of human and nonhuman resources which the first-rate technical expertise is capable of the usage of to provide most effective restricted most amounts of each economic appropriate. shortage in economics refers to whilst the call for for a resource is greater than the deliver of that aid, as assets are limited. shortage consequences in purchasers having to make selections on how high-quality to allocate assets a good way to satisfy all simple needs and as many desires as feasible. shortage refers back to the confined availability of a useful resource in contrast to the infinite desires. shortage may be with appreciate to any natural assets or with admire to any scarce commodity. scarcity can also be called paucity of sources.

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Answer:

why consumers are willing to pay high prices for items.

why decisions must be made on how to use resources

why a single resource has more value than another resource.

Explanation:

why a product could lose significant value over time.

why people continue to purchase different products.

why consumers are willing to pay high prices for items.

why decisions must be made on how to use resources

why resources can be both renewable and nonrenewable.

why a single resource has more value than another resource.

(i took the test)

Which action would a government most likely take to reduce its
unemployment rate?
A. Use tax money to hire workers for government projects
B. Cut taxes on businesses that operate with very few workers
C. Increase taxes on businesses that operate outside the country
D. Cut off loans to businesses in order to reduce the money supply
SUBMIT

Answers

A; sounds like the best option

The unemployment rate is the unemployed divided by the sum of employed and unemployed, in order to reduce it the government can hire workers for a new project by using tax money.

What is the unemployment rate?

It is the rate of unemployment calculated by the number of people unemployed to the total number of people employed and unemployed multiplied by 100.

In order to reduce it, the government can hire workers for a new project by using tax money

Therefore, option A can help in the reduction of the unemployment rate.

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The Nigel Co. had four separate operating segments:What amount of revenues must be generated from one customer before that party must be identified as a major customer

Answers

The amount of revenues must be generated from one customer before that party must be identified as a major customer is: $53,180.

Revenue generated

Any revenues generated from a single customer have to be disclosed if the amount is either 10% or more of consolidated sales.

Hence:

Using this formula

Consolidated revenue= Total sales to outsider for 4 separate operating segments×10%

Let plug in the formula

Consolidated revenue=($173,600+$115,300+$134,000+$108,900)×10%

Consolidated revenue=$531,800×10%

Consolidated revenue= $53,180 minimum

Inconclusion the amount of revenues must be generated from one customer before that party must be identified as a major customer is: $53,180.

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Two countries, P Country and Q Country produce and trade C Thing and D Stuff with each other. To produce 1 C Thing P Country gives up 0.5 D Stuff. To produce 1 C Thing Q Country gives up 0.67 D Stuff. Based on this if they trade D Stuff, then a fair price would be between a. 0.67 and 1.5 C Things b. 1.5 and 2.0 C Things c. 0.5 and 2.0 C Things d. 0.5 and 0.67 C Things

Answers

Correct option is a. fair price for trading D Stuff would be between 0.67 and 1.5 C Things, because of the differing opportunity costs of production between the two countries.

When comparing the exchange rates of P Country and Q Country for producing C Things, we find that P Country gives up 0.5 D Stuff to produce 1 C Thing, while Q Country gives up 0.67 D Stuff to produce the same quantity.

This implies that Q Country has a higher opportunity cost for producing C Things compared to P Country.

To determine the fair price range for trading D Stuff, we need to consider the relative exchange rates between the two countries. If P Country were to trade 1 C Thing to Q Country, they would be giving up 0.5 D Stuff. Similarly, if Q Country were to trade 1 C Thing to P Country, they would be giving up 0.67 D Stuff.

Considering these exchange rates, we can conclude that the fair price for trading D Stuff would fall between 0.67 and 1.5 C Things. This range represents the opportunity cost for each country when producing C Things and provides a mutually beneficial trade outcome.

In summary, based on the given information, Correct option is a. fair price for trading D Stuff would be between 0.67 and 1.5 C Things.This range accounts for the differing opportunity costs of production between P Country and Q Country, ensuring a balanced exchange for both parties involved.

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Problem 4-3
Wang Inc. paid $1,560,000 to acquire 40,000 (80%) of the outstanding shares of Brandon Ltd. on January 1, Year 5. Brandon's shares were trading for $33 per share just prior to the acquisition by Wang.
The balance sheet of Wang Inc. at January 1, Year 5, was as follows:
Carrying Amount
Fair Value
Cash
$
75,000
$
75,000
Accounts receivable
295,000
310,500
Inventory
207,000
188,200
Property, plant, and equipment
1,369,000
1,237,500
Accumulated depreciation
(320,000)
$1,626,000
Current liabilities
$ 157,500
157,500
Liability for warranties
119,000
151,600
Common shares
680,000
Retained earnings
669,500
$1,626,000
Required (a) Prepare a schedule to calculate and allocate the acquisition differential. (b) Calculate goodwill and noncontrolling interest under the identifiable net assets approach.

Answers


(a) To calculate and allocate the acquisition differential, we need to determine the fair value of Brandon Ltd.'s identifiable net assets at the acquisition date. The identifiable net assets include assets and liabilities that can be specifically identified and measured.

Here's a schedule to calculate and allocate the acquisition differential:

1. Determine the fair value of Brandon Ltd.'s identifiable net assets at the acquisition date:
  - Cash: $75,000
  - Accounts receivable: $310,500
  - Inventory: $188,200
  - Property, plant, and equipment: $1,237,500
  - Accumulated depreciation: ($320,000)
  - Current liabilities: $157,500
  - Liability for warranties: $151,600

2. Calculate the total fair value of identifiable net assets:
  Total fair value = Sum of fair values of identifiable net assets
  Total fair value = $75,000 + $310,500 + $188,200 + $1,237,500 + ($320,000) + $157,500 + $151,600

3. Calculate the acquisition differential:
  Acquisition differential = Purchase price - Total fair value of identifiable net assets
  Acquisition differential = $1,560,000 - Total fair value of identifiable net assets

4. Allocate the acquisition differential:
  Allocate the acquisition differential to the individual identifiable net assets based on their relative fair values.

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For an FBLA-PBL member who is interested in running for a state or national

office, what FBLA-PBL activity would be the most likely to help them?

O A. Participate in the Institute for Leaders

B. Network with local business people

C. Participate in local community service

D. Compete at the National Leadership Conference

SUBMIT

Answers

Answer:A

Explanation: i did the test

For each taxpayer, compute the maximum contribution to the retirement plan. a. Lewis a self-employed individual, has net earned income of $50,000 in 202]. If Lewis has no employees, calculate the maximum contribution to a SEP plan that he may deduct from his adjusted gross income. b. During 2021, Lindar age 32, has a salary of 540,001]. She participates in a Section 401(k) plan and chooses to defer 25 percent of her compensation. What is the maximum amount Unda can contribute to the Section 401(k) plan on a taxideferred basis?

Answers

Linda can contribute a maximum of $10,000 to her Section 401(k) plan on a tax-deferred basis.

a. For Lewis, a self-employed individual with a net earned income of $50,000 in 2021 and no employees, the maximum contribution to a SEP plan that he may deduct from his adjusted gross income can be calculated as follows:

1. Determine Lewis's net profit from self-employment. This can be calculated by subtracting any business expenses from his net earned income. Let's assume Lewis has $5,000 in business expenses, so his net profit is $50,000 - $5,000 = $45,000.

2. Calculate the maximum contribution limit. As a self-employed individual, Lewis can contribute up to 25% of his net profit to the SEP plan. Therefore, the maximum contribution limit is 25% of $45,000, which is $11,250.

3. Determine the deductible amount. The deductible amount is the lesser of the maximum contribution limit or 20% of Lewis's adjusted gross income. Since Lewis has no other adjustments to his gross income, his adjusted gross income is the same as his net earned income of $50,000. Therefore, the deductible amount is the lesser of $11,250 or 20% of $50,000, which is $10,000.

Therefore, Lewis can deduct a maximum contribution of $10,000 to his SEP plan from his adjusted gross income.

b. For Linda, a 32-year-old individual with a salary of $40,000 in 2021 who chooses to defer 25% of her compensation to a Section 401(k) plan, the maximum amount she can contribute on a tax-deferred basis can be calculated as follows:

1. Determine Linda's compensation that is eligible for deferral. Linda's eligible compensation is $40,000 multiplied by 25%, which is $10,000.

2. Determine the elective deferral limit. In 2021, the elective deferral limit for a Section 401(k) plan is $19,500.

3. Determine the maximum amount Linda can contribute. The maximum amount Linda can contribute is the lesser of her eligible compensation or the elective deferral limit. Therefore, the maximum amount Linda can contribute is $10,000.

Therefore, Linda can contribute a maximum of $10,000 to her Section 401(k) plan on a tax-deferred basis.

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What are 3 reasons for having a checking account?

Answers

The major reason for having the checking account are financial safety, easy access to your funds, savings from check-cashing fees, and overall financial peace of mind.

Checking account:

In accounting, checking account is the  type of bank account that allows you to easily deposit and withdraw money for daily transactions.

Given,

Here we need to find the 3 reasons for having a checking account.

Based on the given definition we know that the checking account is the that is perfectly suitable for the daily transactions actions.

Therefore, the reason behind the usage of checking account is listed as,

=> helps you manage your day-to-day finances, such as paying your bills,

=> receiving direct deposit of your paycheck, and

=> withdrawing cash from an ATM.

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