Which of the following statements about portfolio income from investments that are not held in a tax-deferred account, is accurate?
A) It is also called investment income.
B) It is normally in the form of dividends and interest.
C) It must be reported on your tax return.
D) It may be taxed at a lower rate than wages and salaries are.
E) All of the above
Answer: E
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Exhibit 20-4 On January 1, 2016, Average Leasing Company entered into a direct financing lease with a lessee, Lenny Company. The lease agreement calls for five equal annual payments of $75,000 at the beginning of each year with the first payment due on January 1, 2016. The leased property has an estimated residual value of $10,000, which Lenny does not guarantee. The property remains the property
of Average at the end of the lease term. Average desires a 12% rate of return. Present value factors for a 12% interest rate are as follows: Present value of $1 for n = 1 0.892857 Present value of $1 for n = 5 0.567427 Present value of an ordinary annuity for n = 5 3.604776 Present value of an annuity due for n = 5 4.037349 ? Refer to Exhibit 20-4. What is the amount of the credit to Unearned Interest: Leases to be recorded by Average Leasing on January 1, 2016 (round the answer to the nearest dollar)? A) $82,199 B) $66,525 C) $72,199 D) $76,525
Beckham Corporation has 3,000 shares of $100 par value, 7 percent cumulative preferred stock, and 10,000 shares of $10 par value common stock outstanding during its first five years of operation. Beckham Corporation paid cash dividends as follows: 2006, $14,000; 2007, $18,000; 2008, $65,000; 2009, $30,000; 2010, $15,000 . The amount of dividends received by the preferred stockholders during 2010
was a. $17,500. b. $15,000. c. $16,500. d. $17,000.
Averaging the total cost of completed beginning work-in-process inventory and units started and completed over all units transferred out is known as
a. strict FIFO. b. modified FIFO. c. weighted average costing. d. normal costing.
While hunting, Roger enters Adele's property without permission and is injured by falling into a ditch that was obscured by the underbrush. Under the common law, Adele is liable for Roger's injuries
Indicate whether the statement is true or false