Matthew Kennedy of Urbana, Ohio, is single and has been working as an admissions counselor at a university for five years. Matthew owns a home valued at $250,000 on which he owes $135,000. He has a two-year-old vehicle valued at $32,000 on which he owes $26,000. He has about $20,000 remaining on his student loans. His retirement account has grown to $32,000, and he owns some stock valued at $9,000. Matthew has no life insurance and is considering buying some. How much should he buy?

Marianne is a 43-year-old tax attorney who wants to buy life insurance. Marianne's husband Gaetan, 61, is a retired police lieutenant with a substantial pension benefit that provides him and his family with a comfortable lifestyle. The couple has two children: Penny, who is in high school, and Leonard, who is in university on a full scholarship. Marianne's mother Beatrice lives in a retirement home that Marianne pays for. Which of Marianne's family members will experience the greatest financial loss if Marianne were to die prematurely? Select one correct answer from the list 1 2. Gaetan Penny 3. Leonard 4 Beatrice » 0 0 0 0

Sam is currently 30 years of age. He owns his own business and wantsto retire at the age of 60. He has little confidence in the current SocialSecurity system. He wants to retire with an annual income of $72,000a year.a. If Sam believes he will live to age 90, how much does he have to accumulateby the time he reaches age 60 to receive $72,000 at the end of each yearfor the rest of his life? Sam believes he can earn 8 percent on his money in astock mutual fund.b. How much does he have to accumulate if he wants the payment of $72,000at the beginning of each year?c. What dollar amount of interest will Sam have earned during retirement if hereceives his $72,000 at the beginning of each year?

Donald Jefferson and his wife, Maryanne, live in a modest house located in a Los Angeles suburb. Donald has a job at Pittsford Cast Iron that pays him $50,000 annually. In addition, he and Maryanne receive $2,500 interest from bonds that they purchased 10 years ago. To supplement his annual income, Donald bought rental property a few years ago. Every month he collects $3,500 in rent from all of the property he owns. Maryanne manages the rental property, and she is paid $15,000 annually for her work. During 2015, Donald had to have the plumbing fixed in the houses that he rents as well as the house in which he and Maryanne live. The plumbing bill was $1,250 for the rented houses and $550 for the Jeffersons’ personal residence. In 2015, Donald paid $18,000 for mortgage interest and property taxes—$12,650 was for the rental houses, and the remaining $5,350 was for the house occupied by him and his wife. The couple has three children who have graduated from medical school and now are…

Kate Beckett and her two children, Austin and Alexandra, moved into the home of her new husband, Richard Castle, in New York City. Kate is a novelist, and her hus-band is a police detective. The family income consists of the following: $60,000 from Kate’s book royalties; $90,000 from Richard’s salary; $10,000 in life insurance proceeds from a deceased aunt; $140 in interest from savings; $4,380 in alimony from Kate’s ex-husband; $14,200 in child support from her ex-husband; $500 cash as a Christmas gift from Richard’s parents; and a $1,600 tuition-and-books scholarship Kate received to go to college part time last year. (a) What is the total of their reportable gross income?(b) After Richard put $5,600 into qualified retirement plan accounts last year, what is their adjusted gross income?(c) How many exemptions can the family claim, and how much is the total value allowed the household?(d) How much is the allowable standard deduction for the household?(e) Their itemized deductions are…

Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year, Junior: • Personally stayed in the home for 22 days. Rented it to his favorite brother at a discount for 10 days. ● . Rented it to his least-favorite brother for 8 days at the full market rate. • Rented it to his friend at a discounted rate for 4 days. . Rented the home to third parties for 58 days at the market rate. • Did repair and maintenance work on the home for 2 days. • Marketed the property and made it available for rent for 150 days during the year (but did not rent it out). How many days of personal use and how many days of rental use did Junior experience on the property during the year? Answer is complete but not entirely correct. Days of personal use Days of rental use 97 x 80 x

Mitch and Bill are both age 75. When Mitch was 23 years​ old, he began depositing ​$1300 per year into a savings account. He made deposits for the first 10​ years, at which point he was forced to stop making deposits.​ However, he left his money in the​ account, where it continued to earn interest for the next 42 years. Bill​ didn't start saving until he was 46 years​ old, but for the next 29 years he made annual deposits of ​$1300. Assume that both accounts earned an average annual return of 4​% ​(compounded once a​ year). Complete parts​ (a) through​ (d) below. A) How much money does Mitch have in his account at age 75? B) How much money does Bill have in his account at age 75.  C) Compare the amounts of money that Mitch and Bill deposit into their accounts. Mitch deposits _ in his accunt and Bill deposits _ in his account. D) Draw a onclusion about the parable. Choose the correct answer.  -Bill ends up with more money in his account than Mitch because he makes more deposits than…

Jenny, single, age 42, earns $50,000 working in 2022. She has no other income. Her medical expenses for the year total $5,000. During the year, she suffered a nonbusiness casualty loss of $7,500 when her apartment is damaged by flood waters (part of a Federally declared disaster area). Jenny contributed $10,000 to her church. She is trying to decide whether to contribute $1,000 to a traditional IRA. Fill in the table below to see if the IRA contribution reduces taxable income. Don't forget to apply the floors to the medical expenses. The deductible casualty loss has been calculated for you. We will look at personal (nonbusiness) casualty losses in another chapter; note that the nonbusiness casualty loss calculation involves 2 floors. 1. Complete the table to show the effect the IRA contribution would have on Jenny's itemized deductions. Without IRA Contribution Gross Income Contribution to IRA AGI Itemized Deductions Charitable contribution Medical expense deduction Casualty loss…

Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year, Junior: Personally stayed in the home for 22 days. Rented it to his favorite brother at a discount for 10 days. Rented it to his least-favorite brother for 8 days at the full market rate. Rented it to his friend at a discounted rate for 4 days. Rented the home to third parties for 58 days at the market rate. Did repair and maintenance work on the home for 2 days. Marketed the property and made it available for rent for 150 days during the year (but did not rent it out). How many days of personal use and how many days of rental use did Junior experience on the property during the year? Days of personal use:  Days of rental use:

Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2022. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,250 to move their personal belongings, and she and Heather spent two days driving the 1,600 miles to Georgia. Reba rented a home in…