Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. otis is the ceo of rectify, inc., a private founda

Otis is the CEO of Rectify, Inc., a private foundation. Otis invests $500,000 (80%) of the...

50.1K

Verified Solution

Question

Accounting

Otis is the CEO of Rectify, Inc., a private foundation. Otisinvests $500,000 (80%) of the foundation's investment portfolio inhigh-risk derivatives. Previously, the $500,000 had been investedin corporate bonds with an AA rating that earned 4% per annum. Ifthe derivatives investment works as Otis's investment adviserclaims, the annual earnings could be as high as 20%.

Compute the amount of the initial tax, if any.

  1. The initial tax imposed on Rectify (if any) is $.
    The initial tax imposed on Otis (if any) is $

If the act causing the imposition of the tax is not addressedwithin the correction period, compute the additional tax, ifany.

  1. The additional tax for Rectify (if any) would be $.
    The additional tax for Otis (if any) would be $

that's the whole question from the homework

Answer & Explanation Solved by verified expert
3.6 Ratings (471 Votes)
1 Compute the amount of the initial tax if any2 If    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

40. Primary aldosteronism leads to a. hypernatremia b. hyponatremia c. hyperkalemia d. none of the above 39. Hypernatremia secondary to...

Advance Math
1.2K views

Assume there are 14 homes in the Quail Creek area and 4 of them have a...

Biology
1.2K views

The graph below shows oxygen dissociation curves for the haemoglobin of a mother and her...

Biology
1.2K views

In pea plants purple flowers P are dominant over white flowers p If two heterozygous...

Biology
1.2K views

Both aerotolerant anaerobes and facultative anaerobes can live in places that have oxygen or no...

Physics
1.2K views

In Young s double slit experiment to increase the fringe width 1 the wavelength of...

Basic Math
1.2K views

If possible, use the Law of Syllogism to make a conclusion. If it is not...

Algebra
1.2K views

Expand each logarithm 9 log 11 log 13 log 6 15 log 5 12 7...

Algebra
1.2K views

automatically A formula for compound interest is shown below where A is the value of...

Accounting
1.2K views

Jason is investing his money in a financial institution whose interest rate is 15% compounded...

Accounting
1.2K views

Sherrod, Inc., reported pretax accounting income of $76 million for 2016. The following information relates...

Accounting
1.2K views

Use the DuBois Corporation data in question 2. The company reports changes in fair value...