Ron and Janice Mawson are now both 55 years old but Ron was disabled for eight years which resulted in excess medical costs so they had to refinance the house. The current mortgage is $150,000 and the house has a market value of $800,000. They also have two children aged 12 and 14 and they continue to work in their current positions.
They currently have no liabilities other than the mortgage and they continue to invest in their RRSPs on a monthly basis. Ron has grown his RRSP to $300,000 and Janice has $350,000 in her RRSP. They each contribute $800 per month to these plans and will continue to do so until their planned retirement at age 65. These registered plans are currently invested 30% income and 70% equity.
Both Ron and Janice also have a defined benefit pension plan with their employer's which will pay 1.5% of their final salaries times their years of service. Ron and Janice will have final salaries of $125,000 and $80,000 respectively. Their years of service are 25 years for Ron and 30 years for Janice.
In addition, Janice has a non-registered portfolio worth $100,000 which is allocated 50% preferred dividend funds and 50% capital growth equity funds. This non registered fund currently has an unrealized capital gain of $30,000. She expects this fund to continue to grow by 8% per year with all of the growth relating to capital gains. Ron also has $80,000 invested in Canada Savings Bonds that are earning 3% interest and he plans on holding these bonds until retirement.
Their house is held in joint tenancy and they have designated each other as beneficiary on their RRSP and Pension Plans. The non-registered accounts are held in their individual names and do not have beneficiary designations or rights of survivorship.
How would these probate fees change if the estate was the beneficiary of Ron's RRSP? What is the amount owed in this scenario?
Total Stockholders' Equity 201.006 224.805 Total Linbilities and Equity 390,805 659.376 712,231 Costs were estimated on the assumption that expenses incurred in manufacturing in the United States for export would run approximately the same as for existing business. However, selling and warehousing expenses would not be incurred. Turner considering selling at cost ($177,750) in order to increase his chances of adding volume and getting a foothold in the German market, but eventually decided that an offer to sell for $225,000 would not lessen chances of receiving the order. Exhibit 3 German mark-U.S. dollar Exchange Quotations: Tuesdays in January, February, and March 1983 (DM/S) 1-Month 3-Month 6-Month Quotation Dare Spot Forward Forward Forward January 4 2.3607 2.3552 2.3491 2.3430 January 11 2.3485 2.3419 2.3354 2 3288 January 18 2.3998 2.3923 2.3793 2.3579 January 25 2.4213 2.4143 2.3992 2.3764 February 1 2.4734 2.4667 2.4498 2.4248 February 8 2.4343 2.4284 2.4131 2.3895 February 15 2.4033 2.3975 2.3827 2.3596 February 22 2.4290 2.4225 2.4079 2 3866 March 1 2.4375 2.4298 2.4153 2.3945 When Turner learned on March I that his offer had been accepted he began to think about foreign exchange risk. Although the mark had dropped in dollar value for the four weeks before the offer was made, he noted that since February 1 the mark had strengthened. The sales price of DM562,000 divided by the March 1 rate of DM2,4375/$ meant that the effective sales price was not $230.769. With jubilation, Turner noted that Culver Radio had already earned $5,769 on exchange rate changes during the bid period! Turner wondered if he should do anything now that the order was certain, Turner called his banker, Beverly Wu, to ask her advice. She suggested four possible courses of action: Hedge in the forward market. Obtain protection via a money market hedge. Seek protection through trading in the foreign currency option market newly created on the Philadelphia Stock Exchange 4. Do nothing. After explaining the alternatives, Beverly Wu read to Turner a forecast for the German mark that had been published a few weeks earlier by a London foreign exchange market advisory service Deutschemark. No change in this service's evaluation of the DM. Pending Germany's121 Accounts Receivable-Spring Designs Decorators 129 Allowance for Doubtful Accounts EXPENSES 132 Notes Receivable 510 Cost of Merchandise Sold 141 Merchandise Inventory 520 Salos Salaries Expense 145 Office Supplies 521 Advertising Expense 146 Store Supplies 522 Depreciation Expense-Store Equipment 151 Prepaid Insurance 523 Delivery Expense 181 Land 524 Repairs Expense 191 Store Equipment 529 Selling Expenses 192 Accumulated Depreciation-Store Equipment 530 Office Salaries Expense 193 Office Equipment 531 Rent Expense 194 Accumulated Depreciation-Office Equipment 532 Depreciation Expense-Office Equipment 533 Insurance Expense LIABILITIES 534 Office Supplies Expanse 210 Accounts Payable 535 Store Supplies Expense 211 Salaries Payable 536 Credit Card Expanse 213 Sales Tax Payable 537 Cash Short and Over 214 Interest Payable 538 Bad Debt Expense 215 Notes Payable 539 Misoullaneous Expense 710 Interest Expense EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary ( Previous Check My Work 2 more Check My Work uses remaining.Restaurants do a large volume of business by credit and debit cards. Suppose Cityside Collection restaurant had these transactions on January 28, 2016: National Express credit card sales $ 10,800 ValueCard debit card sales 6,000 Requirements 1. Suppose Cityside Collection's processor charges a 3% fee and deposits sales net of the fee. Journalize these sales transactions for the restaurant. 2. Suppose Cityside Collection's processor charges a 3% fee and deposits sales using the gross method, Journalize these sales transactions for the restaurant. Requirement 1. Suppose Cityside Collection's processor charges a 3% fee and deposits sales net of the fee. Journalize these sale transactions for the restaurant. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journalize the credit sales net of the fee, first. Accounts and Explanation Debit Credit Now joumalize the debit card sales net of the fee. Accounts and Explanation Debit CreditWhich of the following statements is FALSE? O A. Both credit cards and debit cards are financial innovation responses to changes in supply conditions. O B. A firm issuing credit cards earns income from loans it makes to credit card holders and from payments made by stores on credit card purchases. O C. Credit cards have become extremely popular that in addition to VISA and Mastercard, nonfinancial institutions such as General Motors and Walmart have entered into the credit card business. O D. Debit cards are a spin off from credit cards and purchases on debit cards is immediately deducted from the card holder's bank account, making it a higher cost in processing transactions. Reset Selection
