Ch4 Homework

Ch4 Homework - Yichen Zhang Student ID: 12018413 42. The...

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Yichen Zhang Student ID: 12018413 42. The partnership deducted $1,800 in premiuns paid for group term life insurance. And these premiums of $10,000 have been deducted in calculating the partnership profit of $210,000. Each partner has a one-third interest in the capital and profit of the partnership. So each partner’s gross income from the partnership for the tax year is $70,600 [($210,000+1,800)/3] 46. a. Option1: D = $80,000-($65,000+$15,000) = $ 0 E = $95,000-[($80,000—$0+$65,000)/2+$15,000]= $7,500 R=$0+$7,500=$7,500 b. Option2: D = $95,000-($65,000+$15,000)= $15,000 E= $80,000-[($95,000—$15,000+$65,000)/2+$15,000]= -$7,500 But E must be $0 R= $0+$15,000= $15,000 Option1i Option2, Option1 will result in the least alimony recapture in year3 48. a. Option1 : Cash in the CDs and lend Roy the funds at 6% interest $9,000×(1-35%)—$9,000×(1-15%)= -$1,800 That’ll reduce the family’s negative cash flow: -$3,075+$1,800= -$1,275 b.Option2: Guarantee the loan for Roy As Roy’s father will gurarantee the debt, the interest on the loan is $10,500
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Ch4 Homework - Yichen Zhang Student ID: 12018413 42. The...

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