You give $2.1 million to your college in an irrevocable trust with the stipulation that you receive the earnings from the gift. You are guaranteed an 8% return on your investment. a. What would be the income from your gift? (Enter your answer in dollars, not millions of dollars.) Annual income $ b. How much of your gift would be a tax deduction? (Enter your answer in dollars, not millions of dollars.) Tax deduction $
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You give $2.1 million to your college in an irrevocable trust with the stipulation that you receive the earnings from the gift. You are guaranteed an 8%
a. What would be the income from your gift? (Enter your answer in dollars, not millions of dollars.)
Annual income $
b. How much of your gift would be a tax deduction? (Enter your answer in dollars, not millions of dollars.)
Tax deduction $
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- On December 30, you make a $4,100 charitable donation. a. If you are in the 32 percent tax bracket, how much will you save in taxes for the current year? (Assume your other itemized deductions exceed the standard deduction amount.) Tax savings b. If you deposit that tax savings in a savings account for the next four years at 6 percent, what will be the future value of that account? Use Exhibit 1-A. (Round FV factor to 3 decimal places. Round your answers to 2 decimal places.) Future value14. Future Value of a Tax Savings. On December 30, you decide to make a $2,500 charitable donation. If you are in the 24 percent tax bracket and you expect to itemize your deductions, how much will you save in taxes for the current year? If you deposit that tax savings in a savings account for the next five years at 4 percent, what will be the future value of that account?To be sure that you understand how to use the tables in Appendix A at the end of this book, solve the following exercises. Ignore income tax considerations. The correct answers, rounded to the nearest dollar, appear on page 855. Q.You have just turned 65 and an endowment insurance policy has paid you a lump sum of $400,000. If you invest the sum at 6%, how much money can you withdraw from your account in equal amounts at the end of each year so that at the end of 7 years (age 72), there will be nothing left?
- 1. A company wants to give an endowment for a college. They wish to give $10,202.41 in perpetuity. What would be the present value if the interest rate is 8.1%?What are the journal entries you would make if you sell 1 bitcoin for $36000? Bitcoin is an intangible asset so how would you account for this as journal entries? Could you please explain clearly. What would be the tax implication entries if the tax rate is 30%?You are given $50,000 to invest (not pay bills). How do you invest the money? Explain why this is a good investment(s) and how it would benefit one's financial goals.
- Assume you are working with the foundation to fund a scholarship in your name. Currently, the foundation can earn a 5 percent return on any donations. A. How much money would you need to donate to fund a scholarship that pays $25,000 every year forever, starting one year from now? B. How much money would you need to donate if the foundation could increase their return to 7 percent on any donations?Suppose you earn $60,000 per year and pay taxes based on marginal tax rates. The first tax bracket, which taxes at 5 percent, ranges from $0 to $30,000. The second tax bracket, which taxes at 25 percent, ranges from $30,001 to $120,000. How much will you pay in total taxes? Instructions: Enter your answer as a whole number. %24Answer each of the following independent questions. Ignore personal income taxes. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Suppose you invest $4,100 in an account bearing interest at the rate of 10 percent per year. What will be the future value of your investment in five years? 2. Your best friend won the state lottery and has offered to give you $11,600 in four years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at 8 percent annual interest. What is the present value of your friend’s future gift? 3. In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $68,500 when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of 4 percent per year in order to accumulate the $68,500 purchase price? 4. You have estimated that your educational expenses…
- 1. A company wants to give an endowment for a college. They wish to give $10,202.41 in perpetuity. What would be the present value if the interest rate is 8.1%? 2. Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until the day of your retirement (22 years from now). What is the present value of all these cash flows if the interest rate is 6.84%? 3. Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%? 4. Assume that you currently have $52,385 in the bank. That you are going to receive $585 four times a year until the day of your retirement (30 years from now). What is the present value of all these cash flows if the interest rate is 6.12%?You would like to give your son $70,000 towards his college education 12 years from now. How much money must you set aside today for this purpose if you can earn 8% on your investments? B. $176.271.91 C. $27.797.96 A. $12.250.00 interest rate, you will triple your money in ately D. $3,688.65 E. $14.211.111. A company wants to give an endowment for a college. They wish to give $10,202.41 in perpetuity. What would be the present value if the interest rate is 8.1%? 2. Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until the day of your retirement (22 years from now). What is the present value of all these cash flows if the interest rate is 6.84%? 3. Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%? 4. Assume that you currently have $52,385 in the bank. That you are going to receive $585 four times a year until the day of your retirement (30 years from now). What is the present value of all these cash flows if the interest rate is 6.12%? Give me answer all questions