Bubba Corporation has a profit sharing plan. The company president, Bubba, is receiving the maximum plan contribution amount. The corporation has one other employee, who is eligible for the plan.
If this person earns $12,000 per year, how much must be deposited in the plan for the employee?
$3,000. The maximum contribution is 25% of compensation. That percentage of $12,000 is $3,000.
Service charges by a FINRA dealer for transfer and safekeeping of customer securities held in street name:
may be levied only if the charge if fair, reasonable, and non-discriminatory. This is the standard in the FINRA rules.
A front-end loan mutual fund plan is most suitable for:
a contractual plan. The other choices are not suitable. In a voluntary accumulation plan, the load is level. In an automatic withdrawal plan, the load is front -end because the bulk of the sales charge is taken early in the life of the plan.
Bubba buys one XYZ September 50 call at $7 and sells one XYZ September 60 call at $3. At that time, XYZ stock is at $55. Bubba has no other stock positions. At what must XYZ trade for Bubba to break even?
$54. Bubba's position is a bullish spread. The breakeven is determined by adding the debit amount to the lower strike price. The debit amount is $4 ($7 - $3). Adding that to $50 equals $54.
If recaptured deductions are added to income, recaptured investment tax credits are added to:
taxes. Tax credits are not deductible expenses and have no effect on basis.
