User Account

All Pages

Which of the statements is correct and why

Assignment Help Accounting Basics
Reference no: EM132880719

Question - Julia plans to purchase a 10-year annuity with pre-tax payments of $2,466 at the end of each year. The cost of the annuity is $20,000. She is uncertain whether she will use funds directly from her RRIF or funds directly from her non-registered investments to purchase the annuity. Which of the following statements is correct and why?

a) If Julia purchases the annuity with funds from her non-registered investments, none of the annuity payment received each year will be taxable.

b) If Julia purchases the annuity with funds from her non-registered investments, $466 of the annuity payment will be taxed each year.

c) If Julia purchases the annuity inside her RRIF using existing RRIF funds, $466 of the annuity payment will be taxed each year.

d) If Julia purchases the annuity inside her RRIF using existing RRIF funds, $2,000 of the annuity payment will be taxed each year.

Reference no: EM132880719

Questions Cloud

What is the share of han in the net income for first year : Gee will be allowed a bonus of 10% of the net income after salaries. What is the share of Han in the net income for first year
What can be added to the privacy policy : What is the current privacy policy of the online store? Outline how the information is collected and used? What can be added to the privacy policy? Explain why?
Significant pieces of legislation : There are two significant pieces of legislation that impact maritime security in the United States
Effective succession management programs : Explain why technology is important to effective succession management programs?
Which of the statements is correct and why : Julia plans to purchase a 10-year annuity with pre-tax payments of $2,466 at the end of each year. Which of the statements is correct and why
Techniques for forecasting labour supply and demand : What can organizations do in the short run when they recognize a gap in which supply far exceeds demand.
Common discretionary and contingent assessment methods : What are the most common discretionary and contingent assessment methods? What are the similarities and differences between the use of these two types of method
Briefly outline the performance management process : 1. Briefly outline the performance management process. Be sure to discuss the role of individual managers in the implementation of the process.
Course comprehensive project : Collaboration in a business environment is a best practice that leverages the collective knowledge of the team that is assembled.

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