When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $7. Based on actuarial tables, "Joltin' Joe" could expect to live for 30 years after the actress died. Assume that the EAR is 6.8 percent. Also, assume that the price of the flowers will increase at 3.5 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks, and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $7. Based on actuarial tables, "Joltin' Joe" could expect to live for 30 years after the actress died. Assume that the EAR is 6.8 percent. Also, assume that the price of the flowers will increase at 3.5 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks, and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 53P: For each of the following, determine the amount that should be included in gross income: a. Peyton...

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When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $5. Based on actuarial tables, "Joltin' Joe" could expect to live for 31 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will increase at 4.6 percent per year, when expressed as an EAR. Assuming that each year has exactly 52 weeks, what is the present value of this commitment? Joe began purchasing flowers the week after Marilyn died.
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $6. Based on actuarial tables, "Joltin' Joe" could expect to live for 36 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will increase at 4.7 percent per year, when expressed as an EAR. Assuming that each year has exactly 52 weeks, what is the present value of this commitment? Joe began purchasing flowers the week after Marilyn died. Please answer fast i give you upvote.
When Marilyn Monroe died, ex - husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $8. Based on actuarial tables, "Joltin' Joe" could expect to live for 15 years after the actress died. Assume that the EAR is 8.3 percent. Also, assume that the price of the flowers will increase at 3.5 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $5. Based on actuarial tables, “Joltin’ Joe” could expect to live for 20 years after the actress died. Assume that the EAR is 9 percent. Also, assume that the price of the flowers will increase at 3.4 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment?
Catherine buys and sells real estate. Two weeks ago, she paid $300,000 for a house on Pine Street, intending to spend $50,000 on repairs and then sell the house for $400,000. Last week, the city government announced a plan to build a new landfill on Pine Street just down the street from the house Catherine purchased. As a result of the city’s announced plan, Catherine is weighing two alternatives: She can go ahead with the $50,000 in repairs and then sell the house for $290,000, or she can forgo the repairs and sell the house as it is for $250,000. What should Catherine do?
As soon as she graduated from college, Kay began planning for her retirement. Her plans were to deposit $500 semiannually into an IRA (a retirement fund) beginning six months after graduation and continuing until the day she retired, which she expected to be 30 years later. Today is the day Kay retires. She just made the last $500 deposit into her retirement fund, and now she wants to know how much she has accumulated for her retirement. The fund earned 10 percent compounded semiannually since it was established. a. Compute the balance of the retirement fund assuming all the payments were made on time. b. Although Kay was able to make all of the $500 deposits she planned, 10 years ago she had to withdraw $10,000 from the fund to pay some medical bills incurred by her mother. Compute the balance in the retirement fund based on this information.
Shemar and Jordan are cousins who were both born on the same day, and both turned 25 today. Their grandfather began putting $2,900 per year into a trust fund for Shemar on his 20th birthday, and he just made a 6th payment into the fund. The grandfather (or his estate's trustee) will make 40 more $2,900 payments until a 46th and final payment is made on Shemar's 65th birthday. The grandfather set things up this way because he wants Shemar to work, not be a "trust fund baby," but he also wants to ensure that Shemar is provided for in his old age. Until now, the grandfather has been disappointed with Jordan, hence has not given him anything. However, they recently reconciled, and the grandfather decided to make an equivalent provision for Jordan. He will make the first payment to a trust for Jordan today, and he has instructed his trustee to make 40 additional equal annual payments until Jordan turns 65, when the 41st and final payment will be made. If both trusts earn an annual return of…
Shemar and Jordan are cousins who were both born on the same day, and both turned 25 today. Their grandfather began putting $2,900 per year into a trust fund for Shemar on his 20th birthday, and he just made a 6th payment into the fund. The grandfather (or his estate's trustee) will make 40 more $2,900 payments until a 46th and final payment is made on Shemar's 65th birthday. The grandfather set things up this way because he wants Shemar to work, not be a "trust fund baby," but he also wants to ensure that Shemar is provided for in his old age. Until now, the grandfather has been disappointed with Jordan, hence has not given him anything. However, they recently reconciled, and the grandfather decided to make an equivalent provision for Jordan. He will make the first payment to a trust for Jordan today, and he has instructed his trustee to make 40 additional equal annual payments until Jordan turns 65, when the 41st and final payment will be made. If both trusts earn an annual return of…
Susan has purchased a whole life policy with a death benefit of $400,000. Assuming that she dies in 9 years and the average inflation has been 4 percent, what is the value of the purchasing power of the proceeds? I need help using appropriate factor(s) from the tables provided & rounding time value factor to 3 decimal places and final answer to 2 decimal places. Purchasing power of proceeds = ???
a) Catherine buys and sells real estate. Two weeks ago, she paid $300,000 for a house on Pine Street, intending to spend $50,000 on repairs and then sell the house for $400,000. Last week, the city government announced a plan to build a new landfill on Pine Street just down the street from the house Catherine purchased. As a result of the city’s announced plan, Catherine is weighing two alternatives: She can go ahead with the $50,000 in repairs and then sell the house for $290,000, or she can forgo the repairs and sell the house as it is for $250,000. What should Catherine do? (b) Consider your decision whether to go skiing for the weekend. Suppose transportation, lift tickets and accommodation for the weekend costs $300. Suppose also that restaurant food for the weekend will cost $75. Finally, suppose you have a weekend job that you will have to miss to go skiing, which pays you $120. Calculate the opportunity cost of going skiing? Do you need any other information about computing the…
Nadine is retiring at age 62 and expects to live to age 85. On the day she retires, she has $1,650,000 in her retirement savings account. She is somewhat conservative with her money and expects to earn 6 percent during her retirement years. How much can she withdraw from her retirement savings each month if she plans on giving $300,000 to her grandson on the morning of her death? PLEASE SHOW WORK
After reading an estate planning article, Vaughn has decided to take action to reduce his gross estate by making annual gifts to his four children, eight grandchildren, and four great-grandchildren. Vaughn has discussed the gifting strategy with his wife, Rebecca and she has agreed to split each gift. If Vaughn gifts the maximum amount each year without incurring gift taxes, how much can he gift this year? Must a gift tax return be filed? Celeste and Raymond have bene married for 29 years. Last year, Raymond sold his business and his net worth now exceeds $30 million. Celeste and Raymond have twin daughter, Kelly and Shelly. Celeste and Raymond, neither of whom have given any gifts in the past, would like to give their daughters the maximum amount of cash possible without incurring any gift tax liability. How much can Celeste and Raymond give to Kelly and Shelly this year?