ago, Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Deferred sales charge Within the first year 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year 1% After the sixth year 0% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)?| Calculate the amount that Max will receive:

ago, Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Deferred sales charge Within the first year 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year 1% After the sixth year 0% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)?| Calculate the amount that Max will receive:

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 52P

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Ted Paulson needed money to pay for unexpected medical bills. To obtain $8,700, he decided to sell some of his shares in the Ridgemoor Capital Appreciation Fund. When he called the investment company, he was told that the following fees would be charged to sell his B shares: Ridgemoor Capital Appreciation Fund Fees First year 5 percent withdrawal fee Second year 4 percent withdrawal fee Third year 3 percent withdrawal fee Fourth year 2 percent withdrawal fee Fifth year 1 percent withdrawal fee If he has owned the fund for 16 months and withdraws $8,700 to pay medical bills, what is the amount of the contingent deferred sales load?
At the beginning of last year, Thomas purchased 100 shares of the Web.com Fund at an NAV of $34.64 and automatically reinvested all distributions. As a result of reinvesting, Thomas ended the year with 132 shares of the fund with an NAV of $46.27. What was his total return for the year on this investment? Thomas total return for the year on this investment was enter your response here%. (Round to two decimal places.)
Sarah Mix is a single 30-year-old business owner who has $500 a month toinvest. This money is in excess of the contribution to her company pensionplan. Sarah hears that many of her friends are investing in mutual funds. Hergrandfather, Grandpa Russ, invested in the stock market and lost everything.He advises her to invest only in bonds. Her uncle, Sam, thinks thatshe should invest in stock mutual funds, but only in conservatively managedfunds that invest in U.S. blue-chip stocks. Sarah notes that her Grandpais 70 years old and her uncle is 55 years old. Her friend Jane, who is also30 years old, said she only invests in small capital growth funds.a. What should you advise Sarah to invest in?b. Why do you think these people have different investment strategies?
Joseph is the sole trustee of a trust fund of $1,000,000. By the terms of the trust, he is under a duty to invest the money ‘as if he were absolutely entitled to the assets of the trust’. He is approached by Ronald, an investment broker, who offers to pay him $100,000 ‘no questions asked’ if he invests the trust fund with him. Joseph agrees, and is paid the $100,000. Ronald invests the $1,000,000 on the stock market, eventually making a loss of $700,000. With only $300,000 remaining, Joseph is now insolvent and Ronald has fled the country. Advise the beneficiaries of the trust.
Two years ago, Lizzy Martinez, from Atlanta, GA, invested $1,000 by buying 125 shares (8$ per share NAV) in the Can't Lose Mutual Fund, an aggressive growth no-load mutual fund. Last year, she made two additional investments of $500 each (50 shares at $10 and 40 shares at $12.50). Lizzy reinvested all of her dividends. So far, the NAV for her investment has risen from $8 per share to $13.25. Assuming that Lizzy has to pay income taxes on the difference between the sales price for the 60 shares and their cost, how much is the difference?
Mr. Jonas invested a total of &100,000 in three mutual funds: a growth fund that lost 8%, a balanced fund that gained 3%, and a bond fund that gained 2%. As a result, he lost $1600 on his investment. If he invested $20,000 more in the growth fund in the bond fund, how much did he invest in each fund?
Two years ago, Lizzy Martinez, from Atlanta, GA, invested $1,000 by buying 125 shares (8$ per share NAV) in the Can't Lose Mutual Fund, an aggressive growth no-load mutual fund. Last year, she made two additional investments of $500 each (50 shares at $10 and 40 shares at $12.50). Lizzy reinvested all of her dividends. So far, the NAV for her investment has risen from $8 per share to $13.25. Investors can use the IRS's "average-cost basis method" to determine the average price paid for one share. Begin by calculating the average price paid for the shares. In this case, the $2,000 is divided by 215 shares (125 shares+50 shares+40 shares). What was the average price paid by Lizzy?
On April 29, 2017, Corey purchased 2,000 units in a Canadian mutual fund company for $13,000. On April 29, 2021, he sold 1,500 shares when they hit $29/share and incurred a large gain. He of course bragged about the gain but did not tell anyone about the capital loss of $5,000 that he also incurred on some other mutual funds sold earlier in the year in January 2021. His tax rate is 40%, how much tax will he pay on the sale of these investments
When Su Young-Ji went to withdraw $3,000 from the Nationwide Fidelity Mutual fund, he was informed that the fund would charge 4 percent of the amount withdrawn. What is the dollar amount of the withdrawal charge?
Pielago has another excess fund amounting to P5,000,000. She is having difficulty whether to invest it in debt or in equity securities. List down the pros and cons of investing in each security to help her decide wisely.
6 years ago Clarissa purchased shares in a certain mutual fund at Net Asset Value (NAV) of $85. She reinvested her dividends into the fund, and today she has 5.1% more shares than when she started. If the fund's NAV has increased by 48.3% since her purchase, compute the rate of return on her investment if she sells her shares today.
Riley invests to a 7-year mutual fund. She invests P50,000 that has a net asset value of P1.25 per share. The fund charges a 1.5 percent entry fee. The market prices are as follows:Year 1 @P1.50 Year 2 @P1.34 Year 3 @P1.60 Year 4 @P1.50 Year 5@P1.54 Year 6 @P1.58 Year 7 @P1.60 How much is to be collected by Riley? *