On October 1, 2014, Mikhail purchases a non-registered segregated fund contract for $55,000. The fund has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On October 1, 2014, Mikhail purchases a non-registered segregated fund contract for $55,000. The fund has 75% death and maturity guarantees. On Feb 1, 2015, when the fund value is $57,000, Mikhail utilizes the reset option. It is now June 1, 2016, and the fund value is $42,500. Which of the following statements about Mikhail's fund is CORRECT? If Mikhail dies today, his beneficiary will receive $42,500. Mikhail's contract matures on October 1, 2024. The death benefit is taxable to Mikhail's beneficiary. If Mikhail cancels the contract today, he will receive $42,500. 10 Oa) Ob) Oc) Od) l8888 On October 1, 2014, Mikhail purchases a non-registered segregated fund contract for $55,000. The fund has 75% death and maturity guarantees. On Feb 1, 2015, when the fund value is $57,000, Mikhail utilizes the reset option. It is now June 1, 2016, and the fund value is $42,500. Which of the following statements about Mikhail's fund is CORRECT? If Mikhail dies today, his beneficiary will receive $42,500. Mikhail's contract matures on October 1, 2024. The death benefit is taxable to Mikhail's beneficiary. If Mikhail cancels the contract today, he will receive $42,500. 10 Oa) Ob) Oc) Od) l8888
Expert Answer:
Answer rating: 100% (QA)
correct ans d If you cash out before the maturity date the ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these banking questions
-
Which of the following statements about the minimum variance portfolio of all risky securities are valid? (Assume short sales are allowed.) Explain. a. Its variance must be lower than those of all...
-
Which of the following statements about cross-bridges is false? a. They are composed of myosin. b. They bind to ATP after they detach from actin. c. They contain an ATPase. d. They split ATP before...
-
Which of the following statements about the security market line (SML) are true? a. The SML provides a benchmark for evaluating expected investment performance. b. The SML leads all investors to...
-
Describe the relationship of the AD, SRAS, and LRAS curves when the economy is in long-run macroeconomic equilibrium.
-
Let n Z+, n odd. If i1i2, . . . , in is a permutation of the integers 1, 2, ..., n, prove that (1 - i 1)(2 - i2) (n - in) is an even integer. (Which counting principle is at work here?)
-
An estimated regression for a random sample of vehicles is MPG = 49.22 0.081 Horse- power, where MPG is miles per gallon and Horsepower is the engine's horsepower. The standard error is se = 2.03....
-
The movie Avatar was given a rating of 4 stars on a scale of 5 stars. Determine which of the four levels of measurement (nominal, ordinal, interval, ratio) is most appropriate.
-
Company A purchased a certain number of Company B's outstanding voting shares at $20 per share as a long-term investment. Company B had outstanding 20,000 shares of $10 par value stock. Complete the...
-
Terrance is age 72 and retired. Beginning in 2022, he must start taking minimum distributions from his IRA account that had a balance of $120,000 as of December 31, 2021. Make these three...
-
1) You are using a 2252 thermistor, = 3940, and you measure a resistance of 672.5 ohms. What is the temperature in C that you are measuring? 2)Suppose we include the lead resistance in the...
-
A company is considering Projects X and Y with following information: Which project will you recommend and why?(A) Project Y as its higher expected NPV.(B) Project X as its coefficient of variation...
-
Thanos is a diversified company involved in a wide range of activities in the food takeaways. Take out the following activities during the year. The company purchased a brand on 1 January 2023 for R3...
-
A stock is selling for $18.50. The possible stock prices at the end of 6 months are $22.50 and $15.00. Interest rate is 6.0% and dividend yield is 0%. Construct a replicating portfolio of stock and...
-
9. Corporate AGT Lt Air Ca AssCap Avco Bell Bell BMO BNS BNS Card Tr Cdn Pa Clearn CnCrTr Coke Coupon Mat. date Bid $ Yid% 8.800 6.750 5.400 5.750 Sep 22/25 100.46 8.75 Feb 02/04 94.00 9.09 Sep 04/01...
-
Consider a security of which we expect to pay a constant dividend of $18.49 in perpetuity. Furthermore, its expected rate of return is 20.1%. Using the equation for present value of a perpetuity, we...
-
Roger Corporation uses the FIFO method in its process costing system. The following data are taken from the accounting records of a particular department for June: Beginning work in process...
-
Discuss one area where evidence in nursing care changed during the 20th century. Explain.
-
San Carlos Bank and Trust Company uses a credit-scoring system to evaluate most consumer loans that amount to more than $2,500. The key factors used in its scoring system are found at the conclusion...
-
The Williamsport Crosscutters baseball team had a player contract with Clemens (a promising young catcher) that was recorded in its accounting records at $500,000. The Reading Phillies hada player...
-
Audit engagement partners were comparing notes about changes in clients financial statement ratios or amounts from the prior years figures. Here is what the partners had discovered. Client 1....
-
Cayman Diving, Inc., needs to acquire a new dive boat. The seller will accept a noninterest- bearing note for $400,000 due in four years or $250,000 in cash. The companys incremental cost of...
-
Refer to Table 4.4 for the selectivity coefficients for ions that interfere with the determination of creatinine by the experimental ISE described in Section 4.3. Assume that \(\mathrm{Na}^{+},...
-
Draw a circuit and specify the resistances that will divide a voltage of \(6 \mathrm{~V}\) to give \(1 \mathrm{~V}\) at a point that you indicate.
-
The cyclic voltammogram below was recorded for a mixture of two different metal complexes, A and B, using a silver/silver chloride reference electrode (+0.197 V versus the normal hydrogen electrode...
Study smarter with the SolutionInn App