Questions from General Investment

Q: Shawn Healy bought 300 shares of Apple Computer common stock at $

Shawn Healy bought 300 shares of Apple Computer common stock at $132 a share. Fifteen months later, in December, Apple was up to $147 a share and Shawn was considering selling her shares because she b...

Q: Karen Kline purchased 200 shares of Mex Inc. common stock for

Karen Kline purchased 200 shares of Mex Inc. common stock for $10 per share exactly two years ago, in December 2017. Today, December 15, 2019, the stock is selling for $18 per share. Because Karen str...

Q: Juan Gonzalez, a single person working for Harla, Inc.,

Juan Gonzalez, a single person working for Harla, Inc., will earn $48,000 in 2018 and contribute $7,000 to the firm’s 401(k) plan. If Juan is in the 12% tax bracket, what will his reportable income be...

Q: Stan Marsh, an investor, is considering two financing plans for

Stan Marsh, an investor, is considering two financing plans for purchasing a parcel of real estate costing $150,000. Alternative 1 involves paying cash; alternative 2 involves obtaining 80% financing...

Q: In the coming year, the McCormicks expect a rental property investment

In the coming year, the McCormicks expect a rental property investment costing $180,000 to have gross potential rental income of $30,000, vacancy and collection losses equaling 5% of gross income, and...

Q: Walt Hubble is contemplating selling rental property that originally cost $200

Walt Hubble is contemplating selling rental property that originally cost $200,000. He believes that it has appreciated in value at an annual rate of 6% over its four-year holding period. He will have...

Q: Bezie Foster has estimated the annual after-tax cash flows and

Bezie Foster has estimated the annual after-tax cash flows and after-tax net proceeds from sale (CFR) of a proposed real estate investment as noted below for the planned four-year ownership period. Th...

Q: You have $5,000 in a 50% margin account

You have $5,000 in a 50% margin account. You have been following a stock that you think you want to buy. The stock is priced at $52. You decide that if the stock falls to $50, you would like to buy it...

Q: Stefani German, a 40-year-old woman, plans

Stefani German, a 40-year-old woman, plans to retire at age 65, and she wants to accumulate $500,000 over the next 25 years to supplement the retirement programs provided by the federal government and...

Q: During 2018, the Smiths and the Joneses both filed joint tax

During 2018, the Smiths and the Joneses both filed joint tax returns. For the tax year ended December 31, 2018, the Smiths’ taxable income was $130,000, and the Joneses had total taxable income of $65...