Distributions from profit-sharing plan

Assignment Help Financial Management
Reference no: EM132054580

1. Which of the following distributions from a profit-sharing plan would be subject to the 10% early withdrawal penalty, assuming the participant has not attained age 59½?

a. A distribution for a 50-year old spouse under a Qualified Domestic Relations Order (QDRO) pursuant to a divorce from the participant in the profit-sharing plan.

b. A distribution from the plan to pay income taxes due to a federal tax levy.

c. A distribution to pay for costs of higher education for a participant’s 18-year-old daughter.

d. A distribution made to the participant after he/she separated from service at age 57.

2. Colin receives a lump-sum distribution of employer securities (1,000 shares) from his stock bonus plan in Year 1 worth $140,000 ($140 per share). The total value of his employer contributions over the years was $30,000. Colin sells all of his distributed shares 3 months after he received it as a distribution from the qualified plan. He received proceeds of $150,000 from the sale. How much is Colin’s long-term capital gain upon sale?

a. $110,000

b. $120,000

c. $30,000

d. $40,000

Reference no: EM132054580

Questions Cloud

Bond pricing-capm and real estate mortgages : Thoroughly describe time value of money as it relates to each concept: Bond Pricing, CAPM, and real estate mortgages.
Making an investment involving more than one currency : Design and solve a problem involving EITHER investing on margin OR use of options OR making an investment involving more than one currency
What is the gain or loss on spot position-futures position : what is the gain or loss on the spot position and on the futures position, and the net hedging result?
Construct proposal that identify specific learning objective : In an 800 to 1,000 word paper (excluding the title and reference page), construct a proposal that identifies three specific learning objectives.
Distributions from profit-sharing plan : Which of the following distributions from a profit-sharing plan would be subject to the 10% early withdrawal penalty,
How the company formulates strategic decisions : Prepare a well-developed presentation discussing how this company engages in the three stages of strategic management. Provide as much of the following.
What discount rate is npv just equal to zero : At what discount rate is the NPV just equal to zero? If the discount rate is zero, what is the NPV?
What is the npv of the stadium : City A is building a stadium for the franchise. What is the NPV of the stadium? Is it economically feasible?
What are the potential payoffs and what are the risks : Write a short memo to the managers explaining the pros and cons of this arbitrage. What are the potential payoffs and what are the risks?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd