Insurers have greater administrative charges for flexible-premium deferred annuities (FPDAs) than they do for single-premium deferred annuities (SPDAs) because:
A) they do not have minimum required deposits for FPDAs
B) there is considerably more adverse selection among persons purchasing FPDAs
C) FPDA purchasers have much greater flexibility in making premium payments
D) This is a trick question; insurers do not impose higher administrative charges on FPDAs versus SPDAs
C
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The building used in Terry's business was condemned by the city of St. Louis. Terry received a condemnation award of $125,000. He paid $1,200 in lawyer's fees and $800 for an appraisal of the property. Terry's adjusted basis in the building was $60,000. Terry reinvests in similar property costing $110,000, and Terry makes the proper election regarding the property. What is the amount of Terry's recognized gain on the condemnation?
A. $50,000 B. $13,000 C. $15,000 D. $63,000
Unless specifically denied, each share of capital stock of a business corporation gives its owner the right to
a. manage the daily operations of the corporation. b. hire and fire employees. c. set company policy. d. share in the assets if the corporation liquidates.
The future structure of the U.S. banking industry is likely to be characterized by many more smaller banks, as customers demand neighborhood banks operated by people they know personally
Indicate whether the statement is true or false
What are the key concepts and related definitions relating to CAS 540.07?
What will be an ideal response?