User Account

All Pages

What is the tax savings from the special tax treatment

Assignment Help Accounting Basics
Reference no: EM133012062

Question - Daniel is considering selling two stocks that have not fared well over recent years. A friend recently informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $74,000 on this stock as an ordinary loss rather than the typical capital loss. Daniel figures that he has a loss of $88,800 on each stock. If Daniel's marginal tax rate is 35 percent and he has $177,600 of other capital gains (taxed at 15 percent), what is the tax savings from the special tax treatment?

Reference no: EM133012062

Questions Cloud

Estimate expected annual profit for this new product : How many iterations would you need to estimate expected annual profit for this new product within $50 for a 95 percent confidence level
Should this sale be recorded in the cash receipts journal : They paid $500 today in cash and will pay the remaining $1,800 after we invoice them. Should this sale be recorded in the Cash Receipts Journal
Calculate new ratio : Question - X & Y share profit in 5/9:4/9 ratio. Z is admitted. X gives 2/9 and Y gives 1/3 from their share. Calculate new ratio
Discuss the expected levels of control risk : Discuss the expected levels of control risk and detection risk you would expect to see in the Audit Program for Milky-Bar
What is the tax savings from the special tax treatment : If Daniel's marginal tax rate is 35 percent and he has $177,600 of other capital gains (taxed at 15 percent), what is the tax savings from the special tax
What is the preimum or discount : A 15000$, 8% bond with quarterly interest coupons redeemable at par in 7 years is purchased to yield at 9% compounded quarterly. What is the preimum or discount
How much would you receive : Question - If you own 50 shares and the company declared a 22% stock dividend, how much would you receive
What is the price of this bond : Assume you have a bond with a 5% semiannual-pay and a face value of $1,000. This bond will mature in 6 years. If the yield is 7%, what is the price of this bond
What and how would you approach this situation : You are very excited to have a new client, but you are not sure how she would react to your mistake. What and how would you approach this situation

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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