Investment A for $100,000 is invested at a nominal rate of interest, j, convertible semiannually. After 4 years, it accumulates to 214,358.88. (b) Investment B for $100,000 is invested at a nominal rate of discount, k, convertible quarterly. After two years, it accumulates to 232,305.73. 2 (c) Investment C for $100,000 is invested at an annual effective rate of interest equal to j in year one and an annual effective rate of discount equal to k in year two. Calculate the value of investment C at the end of two years.
The ledger of Marin Inc. at the end of the current year shows Accounts Receivable $82,000; Credit Sales $840,000; and Sales Returns and Allowances $49,000. (a) If Marin uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Marin determines that Matisse's $900 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.
Henrich is a single taxpayer. In 2019, his taxable income is $455,000.
What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends, and Capital Gains Tax Rates, Estates and Trusts for reference.
1) His $425,000 of taxable income includes $2,000 of a long-term capital gain that is taxed at preferential rates.
2) His $425,000 of taxable income includes $55,000 of a long-term capital gain that is taxed at preferential rates.
3) Henrich has $195,000 of taxable income, which includes $50,000 of a long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000.
