What is the present value of the oconnells income tax

Reference no: EM133662566

Question: Tara and Ronan O'Connell are interested in obtaining life insurance to pay for the tax liability on their estate. Since they are in good health, they anticipate that they will live for another 25 years. They estimate that the . taxable amount of their registered and non - registered assets will be $ 550 , 000 and their marginal tax rate will be 50 % at that time. Their insurance broker gave them a quote of $ 5 , 000 per year for a $ 275 , 000 Term - 100 life insurance policy payable as joint life, last - to - die. Assume a discount rate of 6 % . Round your answer to two decimal places. What is the present value of the O'Connell's income tax on their investments?

Reference no: EM133662566

Questions Cloud

How changes in economic conditions could potentially affect : How Changes in Economic Conditions Could Potentially Affect the Funds and policies that direct the use of these funds. A change in the demand or need

Would you pursue a new fill strategy : Compass box whiskey company capitalizing or expensing. If you were John Glaser, would you pursue a new fill strategy?

What are the strengths and weaknesses of the article : What are the strengths and weaknesses of the article, did the authors succeed or fail in the process of the study?

What transfer price paid to nfl films will make the nfl : If the vertically integrated firmfiles income tax separately for each branch, what transfer price paid to NFL Films will make the NFL Networkearn zero profit

What is the present value of the oconnells income tax : Assume a discount rate of 6 % . Round your answer to two decimal places. What is the present value of the O'Connell's income tax on their investments

How can global firms best deal with this global problem : How can global firms best deal with this global problem but very different regional and individual country regulations should there be a global standard if yes.

Estimate the fixed cost associated with the production : average cost for the period was $2,277 with variable cost per unit of $1.72. Using an average activity level of 364 units, estimate the fixed cost associated

Explain how a slp would use the response-contingency therapy : Explain how a SLP would use the response-contingency therapy stuttering intervention on children who struggle with stuttering.

What would the entry look like to record the receipt : On August 1, 2015, Lifters, a gym, sells 5 annual memberships for $1,500 each. What would the entry look like to record the receipt of cash as deferred revenue

User Account

All Pages