Statements concerning educational fund

Assignment Help Financial Management
Reference no: EM131625168

All of the following statements concerning educational fund 529 Savings Plans are correct EXCEPT:

Contributions are recognized on a five year pro rata basis.

Earnings grow on a tax deferred basis, unless used for qualified education expenses, and then distributions are tax free.

The primary benefit of a 529 Savings plan is the state income tax deduction for contributions.

Earnings are included in gross income and a 10% penalty is assessed if distributions are not used for qualified education expenses.

Reference no: EM131625168

Questions Cloud

True of asset management accounts : Which of the following is true of asset management accounts?
Calculate the expected return on a portfolio : Calculate the expected return on a portfolio of 35 percent Roll and 65 percent Ross by filling in the following table.
Evaluating these three investment possibilities : You are evaluating these three investment possibilities and you want to find the one that generates greater value at the time of your retirement:
Calculate expected return-standard deviation of portfolio : Use the following information to calculate the expected return and standard deviation of a portfolio that is 40 percent invested in 3 Doors, Inc., and 60 percen
Statements concerning educational fund : All of the following statements concerning educational fund 529 Savings Plans are correct EXCEPT:
True regarding the ownership of life insurance : Which of the following is / are true regarding the ownership of life insurance?
What is the net present value of the major engine repair : What is the net present value of the salvage value? What is the net present value of the major engine repair?
Shares of stock outstanding : Botox Facial Care had earnings after taxes of $280,000 in 2009 with 200,000 shares of stock outstanding.
What is the yield to maturity on this instrument : A deep discount bond is expected to grow from $75,325 to $150,000 over ten years. What is the yield to maturity on this instrument?

Reviews

Write a Review

Financial Management Questions & Answers

  Lease requires payment at end of each year for eight years

A lease requires a payment at the end of each year for eight years. The initial asset value is $300,000, and the lessor expects the residual value to be $50,000 at the end of the lease. If the lessor requires a return of 9 percent, how much is the an..

  What is beta of your portfolio

What is the beta of your portfolio?

  Calculate the total cost of the employees wages

Highlander Cutlery manufactures kitchen knives. Calculate the total cost of the employee’s wages during the week described above.

  What is the stock price per share

FFDP Corp. has yearly sales of $28 million and costs of $12 million. The company’s balance sheet shows debt of $54 million and cash of $18 million. There are 950,000 shares outstanding and the industry EV/EBITDA multiple is 7.5. What is the stock pri..

  Explain the shadow banking system

Explain the “shadow banking system,” and why the FederalReserve and other regulatory agencies rescued an “unregulated” insurancecompany and investment bank.

  Locate a report in a medical journal

Locate a report in a medical journal such as Lancet or the American Journal of Drug and Alcohol Abuse, and describe how the references are cited in the text.

  Which will leave the key financial variables unchanged

Do? nothing, which will leave the key financial variables unchanged.

  Higher rates of business investment and capital accumulation

Countries with higher personal saving rates tend also to have higher rates of business investment and capital accumulation. Explain why this fact does not provide a justification based on social efficiency for policies that increase U.S. personal sav..

  According to capital asset pricing model

What would be the fair return for each company, according to the capital asset pricing model (CAPM)

  Reorder the data to reflect income statement format

From the text " Fundamentals of Healthcare Finance" 2nd edition by Louis C. Gapenski, page 352 end of chapter problem 11.1. Entries for the Warren Clinic 2012 income statement are listed below in alphabetical order. Reorder the data to reflect income..

  What is the amount to use as the annual sales figure

Winnebagel Corp. currently sells 29,600 motor homes per year at $81,000 each and 8,600 luxury motor coaches per year at $123,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 24,600 of these..

  What is the projected net income

A proposed new investment has projected sales of $832,000. Variable costs are 57 percent of sales, and fixed costs are $187,260; depreciation is $94,500. Assume a tax rate of 30 percent. What is the projected net income?

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