create the journal entries a) (8 points) You started last year with the following initial financial portfolio:
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a) (8 points) You started last year with the following initial financial portfolio: Stocks, 3% dividend yield $600,000 $300,000 Municipal Bonds, 2% yield @ par Cash (no interest) $100,000 $1,000,000 Financial Net Worth Last year you earned $350,000 in wages and spent $200,000. You pay 30% ordinary income taxes on your wages and 20% on your dividends and capital gains. Your municipal bonds (untaxed) are still at par, while your stock portfolio had a fully realized capital gain of 12%, which has been reinvested in the stock market. Your wages, bond and stock yields go into your cash account. a) (8 points) You started last year with the following initial financial portfolio: Stocks, 3% dividend yield $600,000 $300,000 Municipal Bonds, 2% yield @ par Cash (no interest) $100,000 $1,000,000 Financial Net Worth Last year you earned $350,000 in wages and spent $200,000. You pay 30% ordinary income taxes on your wages and 20% on your dividends and capital gains. Your municipal bonds (untaxed) are still at par, while your stock portfolio had a fully realized capital gain of 12%, which has been reinvested in the stock market. Your wages, bond and stock yields go into your cash account.
Expert Answer:
Answer rating: 100% (QA)
Calculating Your Financial Net Worth after One Year 1 Calculate income from various sources Stocks D... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
4.14 For the beam and loading shown, determine the range of the dis- tance a for which the reaction at B does not exceed 100 lb down- ward or 200 lb upward. 300 lb -6 in.- 300 lb A D C 50 lb 8 in....
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Solve exponential equation. Express irrational solutions in exact form and as a decimal rounded to three decimal places. 2 2x + 2 x - 12 = 0
-
A Harris Poll indicated that of those adults who drive and have a cell phone, the probability that a driver between the ages of 18 and 24 sends or reads text messages is 0.51. Can this probability be...
-
Determine whether the statement is true or false. If it is true, explain why. If it is false, explain why or give an example that disproves the statement. The equations r = 2, x 2 + y 2 = 4, and x =...
-
The Transit Transportation Company has the following operating results to date for 2006: A large Toronto manufacturer has inquired about whether Transit would be interested in trucking a large order...
-
1. Use the FOLKLORE method to complete the documentation of the Management Information Systems Unit GEMS system. Be sure to include customs, tales, sayings, and art forms. 2. In two paragraphs,...
-
To be eligible to fund a Health Savings Account (HSA), a taxpayer does NOT have to meet which of the following criteria: Seleccione una: a. an employer in the service industry/. O b. a self-employed...
-
1. Molly earns 96,000 RMB a year from an average-paying job. Due to personal circumstances, she anticipates that she will be working less next year, earning only 12,000 RMB. The income that she earns...
-
. The Sarbanes-Oxley Act of 2002 requires management to offer an opinion on the fairness of the financial statements each year. A True B False. Question10 ( 5Points 3 Pull manufacturing always...
-
a (1) Find a max flow in the network we looked at in class, but start with the all-0 flow. (2) (a) Solve the problem of finding a largest matching in the graph G below by formulating the matching...
-
A $2,000,000 property with a $210,000 projected netincome can be financed with an 8% interest loan, payablemonthly and amortized over 25 years. Calculate the DCR (Debt Coverage Ratio for each...
-
explain how phenotypic plasticity interacts with genetic assimilation and genetic accommodation processes to facilitate phenotypic evolution in response to environmental change, including the...
-
Is the following relation a function? Yes or no and explain why. {(3,2), (1, 2), (-1, -4), (1, 2)}
-
1. Describe what you understand by a Call Option and a Put Option. 2. During the GFC, the funding of longer-term assets with short-term borrowing was identified as a point of weakness in the...
-
Time left 3:0 Pick all that apply: [Rex Murphy, in 'Selling Something, Dr Suzuki?', Globe and Mail (28 Sept. 2002). Mr Murphy is responding to remarks made by David Suzuki at a press conference...
-
Differentiate. y = ln(3x + 1) ln(5x + 1)
-
Mary paid $2,000 of state income taxes in 2012. The total sales tax she paid during 2012 was $5,500, which included $3,000 for the cost of a new car. How should Mary treat the taxes paid on her 2012...
-
For each of the following situations, indicate whether the taxpayer(s) is (are) required to file a tax return for 2012. Explain your answer. a. Helen is a single taxpayer with interest income in 2012...
-
Indicate, in each of the following situations, the number of exemptions the taxpayers are entitled to claim on their 2012 income tax returns. Number of Exemptions a. Donna, a 20-year-old single...
-
EEG Ince. is a decentralized organization with four autonomous divisions. The divisions are evaluated on the basis of the change in their return on invested assets. Operating results in the...
-
The Willowbrook Community Bank recently decided to adopt a balanced scorecard system of performance evaluation. Below is a list of primary performance goals for four major performance categories that...
-
Washington State Products has several manufacturing divisions. The Seattle Division produces a component part that is used in the manufacture of electronic equipment. The cost per part for July is as...
Study smarter with the SolutionInn App