Sean is the business of buying and selling stocks and bonds. He has a bond of Green Corporation for which he paid $200,000. The bond is currently worth only $50,000. Discuss wether Sean can take a $150,000 loss for a business bad debt or for a worthless security.
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- Robert owns a $140,000 townhouse and still has an unpaid mortgage of $110,000. In addition to his mortgage, he has the following liabilities: Visa $565 MasterCard 480 Discover card 395 Education loan 920 Personal bank loan 800 Auto loan 4,250 Total $7,410 Robert’s net worth (not including his home) is about $21,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. What is Robert’s debt-to-equity ratio? Has he reached the upper limit of debt obligations? ExplainGerry is an entry-level engineer at Boeing Aerospace in California. He took a financial risk and bought a bond from a different corporation that had defaulted on its interest payments. The bond bought at 4240, is an 8% $10,000 bond with interest payable quarterly. The bond paid no interest for the first 3 years after Gerry bought it. If interest was paid for the next 7 years, and then Gerry was able to resell the bond for $11,000, what rate of return did he make on the investment? Assume the bond is scheduled to mature 18 years after he bought it. Plz do fast asap, urgent..Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $24,000 for 980 shares of Malti Company’s common stock. She received a $823 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $22,000. Kathy would like to earn a return of at least 10% on all of her investments. She is not sure whether the Malti Company stock provide a 10% return and would like some help with the necessary computations. Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 10% return?
- Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate ofreturn that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company’s common stock. She received a $420 cash dividend on the stock at the end of each year for three years.At the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14%on all of her investments. She is not sure whether the Malti Company stock provided a 14% return andwould like some help with the necessary computations.Required:(Ignore income taxes.) Using the net present value method, determine whether or not the Malti Companystock provided a 14% return. Use the general format illustrated in Exhibit 12–2 and round all computationsto the nearest whole dollar.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 investmentsKathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $25,000 for 1,200 shares of Malti Company’s common stock. She received a $1,032 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $24,000. Kathy would like to earn a return of at least 13% on all of her investments. She is not sure whether the Malti Company stock provided a 13% return and would like some help with the necessary computations. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 13% return?
- Mr. Mango, a single taxpayer, lent a friend $8,000. The friend did not repay the loan when it was due and then declared bankruptcy. The loan is totally uncollectible. Mr. Mango also was notified that the Oak corporate bonds he owned became worthless on March 3, 2020. He purchased the bonds for $22,000 on November 10, 2019. He also had a $60,000 loss on the disposition of § 1244 corporate stock that he purchased several years ago. a. For the loan, bonds, & stock, what is the amount and character of gain and/or income and/or loss? 25% LTCG, 25% LTCL, 28% LTCG, 28% LTCL, 0/15/20 LTCG, 0/15/20 LTCL, STCG, STCL, ordinary gain, ordinary loss, 1245 recapture, 1250 recapture, 1231 gain, 1231 loss? b. If Mr. Mango has gross income of $65,000 from wages, what is his AGI. c. What are the nature of Mr. Mango’s loss carry forwards?Monty loaned his friend Ned 20,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remaining balance was 11,000, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the 11,000 as a nonbusiness bad debt last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of 9,000 and taxable income of 45,000. During the current year, Ned paid Monty 10,000 in satisfaction of the debt. Determine Montys tax treatment for the 10,000 received in the current year.Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?
