### What is the annual benefit of parents gifting bonds

Assignment Help Finance Basics
##### Reference no: EM13332174

Question 4 options:
What is the annual benefit of parents gifting bonds with annual investment income of \$300 to their 10-year-old child if the parents are in the 35 percent and the child is in the 15 percent bracket?
Tax due if in parent’s name (a) =

Tax due if in child’s name (b) =

Annual Tax benefit [(a) - (b)] =

Save
________________________________________
Question 5

Question 5 options:
Laurence bought a classic car for \$40,000 as a business investment opportunity. He was allowed to depreciate it over 10 years and take the amount as a business tax deduction on his return. At the end of 10 years, the car was sold for \$40,000. If Laurence was in the 38 percent marginal tax bracket and could earn 8 percent after tax on the cash flow generated, what was his cumulative cash benefit after sale on this transaction?
(a) Yearly Deductible Depreciation =

(b) Yearly Tax Benefit =

(c) Cumulative Tax Benefit (future value) =

(d) Tax on \$40,000 Capital Gain =

(e) Net Cash earned [(c) - (d)] =

#### Calculate how many usd a new york based firm will receive

Calculate how many USD a New York based firm will receive or pay for its following four foreign currency transactions: (i) The firm receives dividend amounting to Euro 1,20,

#### What is parkers degree of financial leverage

Parker Inventmemts has EBIT of \$20,000, interest expense of \$2,900, and preffered dividends of \$3,980. If it pays taxes of rate of 38%, what is Parker's degree of financial

#### Compute new stock price

The capital structure of Ricketti Enterprises, Corporation, consists of ten million shares of common stock and 1 million warrants. Each warrant gives its owner the right to pu

#### Discuss federal laws that affect the federal budget

PAD 506: PUBLIC BUDGETING AND FINANCEDiscuss three major federal laws that affect the federal budget process (in at least 500 total words). Discuss at least ten factors influe

#### Evaluate this decision, and make a recommendation

The firm is currently selling 12,000 units but believes that as a result of the proposed change, sales will decline to 10,000 units. The sale price per unit is \$56, and the va

#### Determine the best currency option

Using cash flow analysis determine the best currency option in which Exxon should invest. Be sure to show your complete calculations of the annual return on each investment

#### Situation of an insurance company

Consider the situation of an insurance company which offers personal injury policies to professional hockey players. The typical payoffs to one of these policies are forecas

#### Calculate the present value of growth opportunities

Calculate the Present Value of Growth Opportunities based on the following information: Earnings Per Share = \$8.00, Required Rate of Return = 14%, Dividends Per Share = \$1.5