Tom Roberts loves to read about stocks. He subscribes to the Los Angeles Times, the Ne

John Smith owns 3 apartment buildings. He employees himself as the business manager and pays himself a market wage for this function. Being recently divorced, this job has brought stability to his life. Financially he does not need the manager salary but emotionally he needs the job. Considering the behavioral finance issues Smith would be least receptive to a:

A) hedge of the buildings value.

B) monetization of the buildings.

C) sale of the buildings.

Using the credit method and assuming an individual is taxed on foreign income at a rate of 50% and their domestic tax rate is 40% what percentage of taxes would they pay to their resident country on the foreign income?

A) 0%.

B) 40%.

C) 10%.

If the donor of a gift pays the gift taxes instead of the recipient, then the relative value of the gift:

A) decreases.

B) increases.

C) experiences no change.

Social security and other employment-related pension payments are considered:

A) financial capital because they are derived from an accumulation of the investor's past labor.

B) human capital because they are derived directly from the investor's labor.

C) neither human capital nor financial capital because they are received after retirement.