What tax planning objective may ms jl have accomplished

Assignment Help Financial Management
Reference no: EM13887702

Ms. JL is a successful attorney in the 39.6 percent marginal tax bracket. During the past several years, she provided legal services to her great uncle, who is 78 years old and in failing health. Although the uncle offered to pay for her work, she re-fused any compensation, requesting instead that her uncle remember her appropriately in his will. The uncle recently added a codicil providing for a $250,000 cash bequest to Ms. JL. The remainder of his estate will pass to his two children and seven grandchildren.

a. What tax planning objective may Ms. JL have accomplished through her request of her uncle?

b. Can you identify both the opportunity cost and the risk inherent in her plan?

Reference no: EM13887702

Questions Cloud

Price discrimination is the practice of selling : Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences.evaluate the following statement:"Price discrimination requires market segregation."A. False, becaus..
The future of airport operations : 1. What are the effects on airport design and the frequency of airport pavement replacement and repairs? 2. What are the effects on taxiway and apron separations? 3. What are the effects on gate capacity and baggage handling operations?
Develop the company''s branding, pricing and distribution : Develop the company's branding, pricing, and distribution strategy.
Describe the business : Assume that you are going to start a small business of your own.Describe the business and, utilizing the concepts of this unit and the earlier units, discuss:what costs you would incur;what competition you might experience;
What tax planning objective may ms jl have accomplished : Ms. JL is a successful attorney in the 39.6 percent marginal tax bracket. During the past several years, she provided legal services to her great uncle, who is 78 years old and in failing health. What tax planning objective may Ms. JL have accomplish..
What incentives do pharmaceutical companies : What incentives do pharmaceutical companies have to undertake R&D in medicines for treating AIDS? Malaria? Erectile dysfunction? What can policymakers do about this?
Research paper regarding the funding of airports : Research paper regarding the funding of airports. A complex relationship has developed between the private sector and the federal government with the increase in privatization of large airports over the last 70 plus years and the requirement for fede..
What were the reasons for the great migration? : What were the reasons for the great migration?
Compute mrtbs annual after tax cost : Compute Mr. TB's annual after tax cost and Mrs. TB's annual after-tax cash ‚if he pays her $4,000 monthly child support and she claims their children as dependents. Compute Mr. TB's annual after tax cost and Mrs. TB's annual after-tax cash ‚if she ac..

Reviews

Write a Review

Financial Management Questions & Answers

  Contemplating replacing some existing equipment

Ace Software, Inc. is contemplating replacing some existing equipment with some new hardware. The existing equipment, carried on the books at $800, is being depreciated using the straight-line method to a salvage value of $80 over its remaining life ..

  Compute three-week weighted moving average for time series

Using a weight of 1/2 for the most recent observation, 1/3 for the second most recent, and 1/6 for third most recent, compute a three-week weighted moving average for the time series. Compute the MSE for the weighted moving average in part (a). Do yo..

  Currency forward market and a futures market

Explain the basic differences between the operation of a currency forward market and a futures market and calculate the intrinsic value and the time value of the call and the put option.

  What is the hospitals current receivable balance

Fargo Memorial Hospital has annual patient service revenues of $14,400,000. It has two major third-party payers, and some of its patients are self-payers. The hospital's patient accounts manager estimates that 10 percent of the hospital's billings ar..

  Weighted average cost of capital be before the debt issue

Green Manufacturing, Inc., plans to announce that it will issue $2,000,000 of perpetual bonds and use these funds to repurchase equity. The bonds will have a 6-percent coupon rate. Green manufacturing currently is an all-equity firm. What will Green’..

  Real risk-free rate is expected to remain

The real risk-free rate is expected to remain at 3 percent. Inflation is expected to be 3 percent this year, and 4 percent next year. The maturity risk premium is estimated to be equal to 0.1%(t - 1), where t = the maturity of a bond (in years).

  Make an investment decision

Summarize additional information on Procter and Gamble that a potential investor would need to know to make an investment decision. Other than what the company sells and its history. Use credible business sources.

  Prepare all entries required to properly record the sale

On April 1, 2014, West Company purchased $450,000 of 6.00% bonds for $467,750 plus accrued interest as an available-for sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2019. Prepare the journal entry on April 1..

  Statute of limitations affect income tax obligations

How does the Statute of Limitations affect income tax obligations? How does the Bankruptcy Code affect income tax obligations?

  About the present value

Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target?

  A stock will pay constant dividends

A stock will pay constant dividends of $5 every year. Its required rate of return (a.k.a., cost of capital, discount rate) is 12%. What is the value of the stock? Round to the penny.

  What annual dividend will they have to promise

ABC wants to raise $12 million from the sale of preferred stock. If the ABC wants to sell 1 million shares of preferred stock, what annual dividend will they have to promise if investors demand

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd