Julia suffered a severe stroke and has been admitted to a private hospital where she is expected to remain for the rest of her life. She is certified by a licensed health care practitioner as being a "chronically ill individual." Her hospital expenses amount to $350 per day. She will receive $340 per day from a $500,000 life insurance policy as an accelerated death benefit. In 2018, she was in
the hospital for 10 days and received $3,400. How much of this amount is taxable?
A) $0
B) $500
C) $100
D) $3,400
A) $0
Because she is a chronically ill individual, Julia may exclude the full amount she receives as it is less than the amount of actual expenses and the daily limitation of $360 established by law.
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A corporation has all of the following except
A) government regulations. B) a limited existence. C) separation of ownership and control. D) its own tax liability.
Bart, the owner of Clear Cut Corporation, signs an instrument that includes the phrase "payment for this note will be made from the proceeds of next year's timber sale." This instrument is A) negotiable
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Elway Electronics has debt with a market value of $350,000, preferred stock with a market value of $150,000, and common stock with a market value of $450,000
If debt has a cost of 8%, preferred stock a cost of 10%, common stock a cost of 12%, and the firm has a tax rate of 30%, what is the WACC? A) 8.64% B) 9.12% C) 9.33% D) 9.46%