Exhibit 14-10 USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S)

question 62

Multiple Choice

Exhibit 14-10
USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S)
The WallMal Company has entered into a 4-year interest rate swap, with semiannual settlement, to pay a fixed rate of 8% per year and receive 6-month LIBOR. The notional principal is $50,000,000.
-Refer to Exhibit 14-10. Indicate the market value of the swap to the WallMal Company.

• A) $5,786,345
• B) -$3,575,987
• C) $1,289,450
• D) -$1,514,900
• E) $1,250,075

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Definitions:

Gross Income

The total income earned before any deductions or taxes are applied.

Standard Deduction

The fixed amount the IRS allows taxpayers to subtract from their taxable income if they do not itemize deductions, differing by filing status.

Exemption

A provision that reduces or eliminates a taxpayer's obligation to pay tax, typically based on certain conditions or qualifications.

Tax Bill

A statement from a government authority specifying the amount of tax owed by an individual or entity.