5) Your priceless art collection is stolen (the Gregcasso!), you paid $10,000 for it (sorry no insurance) next you sold your Mutual funds for $3,700 and your ACB was $2,250 with no outlays and expenses. Calculate the combined effect of both Dispositions and what is your Capital gain or loss.
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- A6) Finance Nuno purchased five crypto coins for $1000 in October 2020. He sold two of the coins for $375 in May 2021. He later sold the remaining three coins for $720 in September 2021. What is his net gain or loss on the coins? a: $25 short term loss. b: $95 short term gain. c: $120 short term gain. d: $145 short term gain.Michael Wittry has been investing in his Roth IRA account for 25 years. Two years ago, his account was worth $239,000. After losing 1/3 of its original value, it then gained 1/2 of its new value back. Original Account value: Original value lost: New value gained back: $ 239,000 1/3 1/2 Required: Using the information above, answer the following questions: 1. What was his 1/3 loss? 2. What does Michael's account total after the 1/3 loss? 3. What is the current value of his Roth IRA?2. Suppose that Vickie has the following assets and liabilities: Dec. 31, 2017 $1,200 $2,000 $10,000 Checking account Credit card debt Stock market shares Dec. 31, 2018 $1,000 $1,800 $13,000 If Vickie's income in 2018 was $50,000 and her spending for current needs was $49,000, what were her capital gains in 2018? (Assume no capital losses.)
- 2. Your grandfather left an inheritance for you of $100,000. However you can only drawdown on the investment as follows:Years 1 – 3 $15,000 each yearYear 4 to 6 $10,000 each yearYear 7 $25,000Interest on the fund is 5%. a) What is the present worth of this inheritance? b) Due to high liquidity interest rate have dropped to 4%. What will be the impact on the present worth of this inheritance as a consequence of the market change? 2. Consider Donald and Joe who are both 30- years of age and recently graduated with a degree in Finance. Both Donald and Joe plan to retire at age 67, and the retirement plan pays a 12 percent per annum return and is also compounded monthly. Donald plans to invest $1,000 per month beginning next month into his retirement account, while Joe shall invest $2,000 per month. Joe however does not plan to begin investing until 10 years after Donald begins to invest. How much will each of the newly grads have at retirement?Q1: Hansen bought his primary residence on 1/1/2010 for $400,000. He put $50,000 of his own money as the down payment, and borrowed $350,000 from a bank for the remainder of the purchase price. On 1/1/2021, he was laid off from his job, and he could not make his mortgage payments. On 3/30/2021, the bank foreclosed on the house, and took the house back from Hansen. On 3/30/2021, the house was worth $150,000, and he owed $300,000 to the bank. The bank sold the house for $150,000 which the bank used to pay off half of the $300,000 that Hansen owed. The bank forgave the remaining $150,000 that Hansen owed the bank, pursuant to the foreclosure. In 2021, how much taxable income does Hansen recognize from the bank forgiving the home loan to Hansen? a. $0 b.$150,000 c. $300,000 d. $400,000 Q2. Diamelle purchased a life insurance policy on her life, and named Eric, her husband, as the beneficiary. Diamelle paid $50,000 for the life insurance policy. Upon Diamelle’s death, the life insurance…Initially, your net worth is $100,000. There is then a pandemic, during which you lose your job, you clear out your retirement savings account of $50,000 and spend the whole of your bank deposit of $20,000; your house value falls by 10% from $600,000; your credit card debt increases $25,000; your car depreciates $4,000 in value and your other durables drop in value by $1,000. Your net financial assets change by __________________ and your net worth is now _____________________.
- Jennifer has the transactions below, what is the combined impact on her net worth when considering all of the transactions? She purchases $5,000 worth of a mutual fund with cash from her savings account. She spends $6,000 on a two-week vacation to Italy using funds in her money market account. She purchases $10,000 worth of furniture for her house and uses her credit card to finance the purchase. A. $21,000 decrease in net worth B. $6,000 decrease in net worth C. $15,000 increase in net worth D. $6,000 increase in net worthAssume you have £300,000 worth of assets (W). This includes savings, property and your car. You use the car to drive to school/university every day and there is a 1 in 20 (or 5 per cent) chance per year that you will be involved in an accident that results in the car being a write-off. Assume its market value is £40,000 and remains the same i.e. it does not depreciate. You can take out a full insurance policy for the year that pays out the full £40,000 market value of the car if you have the accident. Assume the insurance company has many customers with exactly the same assets as you and who all face the same risk of being involved in a similar accident. What is the expected value of taking the gamble i.e. not buying the insurance policy?In 2003 your parents put 16 million HUF aside for you to help you buy your first apartment. They invested in a fund that promised a return 10.0% yearly, but they have not kept an eye on the fund's performance. It is 2022 today. 1. How much money do you expect your parents to give you today if they liquidate the investment? million HUF 2. You look at the account statement, and are surprised to find that only 48.93 million HUF is in the account. How much was the actual compound annual growth rate of the fund?
- 1 John and Mary had the following transactions for 2020. Calulate net capital gain/loss, how much to deduct in 2020 and any carryford to 2021 Short Term capital loss (8,000) Long term capital gain 24,000 Long term capital loss (30,000) 2 John purchased an office building in 2010 for $450,000. In 2020 he sells the building for $950.000. John's remaining mortgage on the building was $150,000. The buyer paid $650,000 and assumed the remainig debt on the building. John had taken $100,000 depreciation on the building. Calculate a -Adjusted basis in the building b- Any realized gain or loss on the building2. Suppose you bought a condo for $200,000 financing it with a $40,000 down payment of your own funds and a $160,000 mortgage loan from a bank. D.you only put down $20,000 and borrowed $230,000 to buy the $250,000 house. Assuming that the market value of your house has fallen to $210,000 and ignoring interest and other costs, calculate your rate of return on your asset (ROA) and your rate of return on equity (ROE).You have an HO policy with the following limits: A $75,000 (dwelling) B-$ 7,500 (other structures) C-$25,000 (personal property). A tornado strikes your property. You lose your house, which is worth $65,000 at the time of the loss. You also lose an unattached shed worth $8,000, and personal property worth $30,000. You will collect? (assume $0 deductible, ignore the ACV calculation and assume there is no fraud or other unusual circumstances surrounding the loss.) OA$107,500 OB. $97,500 OC.$103,000