Consider sharing of income risk as a gain from marriage. Assume that individual incomes Y are drawn from a continuous uniform distribution. Risk-averse individuals prefer a marriage where the individual incomes of spouses are perfectly negatively correlated. Select one: O True O False
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- 55. When can partnership/S corporation income can be used. Choose best answer A) Rental income and loss shows profit B) Borrower has accessed the income via cash distributions C) Positive income trends#43 The partnership agreement between Milan and Vera stipulates that Milan is to receive a bonus on profits before bonus, with the residual profit and loss to be apportioned in the ratio of 2:3 respectively. Which partner has a greater disadvantage when the partnership has a profit and when it incurred a loss? a. Profit: Milan Loss: Milan b. Profit: Vera Loss: Milan c. Profit: Milan Loss: Vera d. Profit: Vera Loss: Vera32. Which one of the following statements correctly identifies a purpose or characteristic of a second-to-die life insurance policy? A) The premium will cost more than the combined premiums for separate policies on all of the insured parties. B) When the insured parties are a husband and wife, a purpose may be to allow the first-to-die spouse to leave everything to the surviving spouse. C) This policy is also known as a split dollar policy. D) This is a type of policy that will pay benefits at the death of the first insured to die.
- Ma1. TRUE /FALSE in computing a partnerships business income the amount that can be claimed as CCA follows the very same rules that apply to other taxpayers9. Statement 1 – In installment liquidation, cash priority program and schedule of safe payment wouldresultto different available cash to be distributed to partners.Statement 2 – The partner with the highest capital balance will always have the highest share in the netprofit/loss of the partnership. a. True; Falseb. False; Truec. True; Trued. False; FalseWhat is the rate of tax for partner's distributive share from the net income of the general professional partnership? Group of answer choices 30% 15% None 25%
- 1. S1: Admission of a new partner by investment generally increases the total assets and capital of the new partnership unless there is a negative asset revaluation.S2: Admission of a new partner by the purchase of interest will never affect the total assets and capital of the new partnershipa. S1 is false, S2 is trueb. Both statements are truec. Both statements are false d. S1 is true, S2 is falseQUESTION 51) Kathy and Annise are a married couple who file jointly. In the current year, they have net ordinary income of $10,000 from a partnership interest in which they do not materially participate. They also have a net loss of $30,000 from a rent house in which they actively participate. Their adjusted gross income (AGI) exclusive of these investments is $120,000. What is their AGI after taking into account these investments? $105,000 $125,000 $120,000 $100,000Select for each of the following either "Yes", it is a guaranteed payment or "No", it is not.\\n\\n1. An amount paid to a partner for the performance of services. \\n2. An amount paid each year to the partners as a return on their investment in the partnership. \\n3. An amount paid that is comparable to a salary or interest payment. \\n4. Payments that are generally not deductible. \\n5. Payments that can result in a loss to the entity. \\n\\nb. Complete the statements below regarding the reporting of guaranteed payments on Form 1065 and its various schedules.\\n\\nGuaranteed payments are \\n on Form 1065. These amounts are also shown on \\n as an item that must be allocated to the partners for them to report as ordinary income. Therefore, in the partnership's "book-tax reconciliation" on \\n, the guaranteed payments are added to book income so that the two measures of the partnership's income can be equal.\\n\\nc. Complete the statement below regarding the reporting of guaranteed…
- Question No :-1 W. Mantle, N. Cash, and W. DiMaggio have a partnership called Outlaws. A dispute has arisen among the partners.Mantle has invested twice as much in assets as the other two partners, and he believes net income and net losses should be shared in accordance with the capital ratios.The partnership agreement does not specify the division of profits and losses. How will net income and net loss be divided?Question #76 of 85 Question ID: 1251888 Husband and Wife have two children and decide to divorce. Husband later remarries. He is concerned about his new wife inheriting his estate without sufficient assets being distributed to his two children. Which of the following trusts would be most appropriate to ensure the children receive sufficient assets from Husband's estate? A) A power of appointment trust that names the new wife as the sole income beneficiary and qualifies for the marital deduction, and the children as the remainder beneficiaries B) A revocable living trust that names the new wife as the income beneficiary with a general power of appointment, and the children as the remainder beneficiaries C) A testamentary trust that names the new wife as the sole beneficiary and states that it is Husband's wish for the new wife to distribute 10% of the assets to each child upon their 25th birthdays D) A qualified terminable interest property trust (QTIP) that…Franco and Jason share income and losses in a 2:1 (2/3 to Franco and 1/3 to Jason) ratio after allowing for salaries of $15,000 and $30,000, respectively. If the partnership suffers a $15,000 loss, by how much would Jason's capital account increase? Question 26 options: $10,000 $20,000 $40,000 $25,000