Kristin Graf is trying to decide how to invest a $10,000 inheritance. One option is to make an additional investment in Rocky Road Excursions in which she has an at-risk basis of $0, suspended losses under the at-risk rules of $7,000, and suspended passive activity losses of $1,000. If Kristin makes this investment, her share of the expected profits this year will be $8,000. If her investment stays the same, her share of profits from Rocky Road Excursions will be $1,000. Another option is to invest $10,000 as a limited partner in the Ragged Mountain Winery; this investment will produce passive activity income of $9,000. Complete the letter to Kristin to review the tax consequences of each alternative. Kristin is in the 28% tax bracket. If an amount is zero, enter "0".
Dear Kristin: This letter is in response to your request for assistance in analyzing the tax consequences from two investment alternatives. One alternative is to make an additional investment of $10,000 in Rocky Road Excursions. The other choice is to invest $10,000 as a limited partner in the Ragged Mountain Winery. The following analysis is based on these facts.
Invest $10,000 in Rocky Road Excursions:
Expected profit from investment $
Beginning at-risk basis $
Increase to at-risk basis due to profit $
Increase to at-risk basis due to investment $
Use of loss suspended by at-risk rules $
Ending at-risk basis $
Beginning suspended passive activity loss $
Reclassified suspended passive activity loss $
Use of suspended passive activity losses—revised $
Current taxable income $
Current tax liability $
Invest $10,000 in Ragged Mountain Winery:
Expected profit from investment—Ragged Mountain Winery $
Expected profit from investment—Rocky Road Excursions $
Use of suspended passive activity losses from Rocky Road Excursions $
Current taxable income $
Current tax liability $
As you can see, the tax effects of the two options vary significantly due to the interplay of the at-risk and passive activity loss rules. This analysis should help you make a more informed investment decision. If you need any further explanation, please contact me. Sincerely, Libba Eanes, CPA Partner
Answers
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
Invest $10,000 in Rocky Road Excursions:
Expected Profit from Investment = $8000
Beginning at risk basis = $0
Increase to at-risk basis due to Profit = $8000
Increase to at-risk basis due to investment = $10000
Total = $8000 + $10000 + $0 = $18000
Use of Loss Suspended by at-risk rules = $7000
Ending at risk basis = $11000
Beginning Suspended passive Loss = $1000
Reclassified Suspended passive loss = $ 7000
Use of Suspended passive losses - revised = $8000
Current Taxable Income = $0
Current Tax Liability = $0
Invest $10,000 in Ragged Mountain Winery:
Expected Profit from investment - Ragged Mountain Winery = $9000
Expected Profit from investment - Rocky Road Excursions = $1000
Use of Suspended passive losses from Rocky Road Excursions
($1000 + reclassified suspended under at-risk rules + $1000 suspended passive loss) = $2000
Current Taxable Income = $8000
Current Tax Liability = ($8000 x 28%) = $2.240
Related Questions
According to the video, what are some qualities Tellers need? Check all that apply.
a cheerful, outgoing personality
a dominant, confident presence independence
leadership skills
basic math skills
attention to detail
Answers
Answer:
a e f i did the assment
Explanation:
Answer:
the answer is:
a cheerful, outgoing personality
basic math skills
attention to detail
Explanation:
8) The term "fair market value" refers to
A) what an asset could be sold for today.
B) what you paid when you purchased an asset.
C) what an asset will be worth at some point in the future.
D) how the price of an asset has changed since its original purchase.
Answers
The change in technology and the globalization have brought new pattern of organizing
today's companies, and thus, the managers need to consider these new concepts in
organization's design process. With this statement, discuss the emerging issues in
organization design and architecture.
Answers
Following are the emerging issues in organization design and architecture:Technology and Globalization, Customer Relations,Technical Knowledge, Flexibility, Employee's Well-being.
Following are the emerging issues in organization design and architecture:
Technology and Globalization: The modern era's rapid technology and globalization have forced the organizations to adopt a new pattern of organizing. Managers are focusing more on technology and globalization and they are ensuring that the company can cope with the emerging challenges.Customer Relations: Customers are the major driving force in every business. To maintain the customer base, the managers need to focus on customer relations as the organization's design process should be centered around their needs. This will help the managers in creating a company that provides excellent customer service to its customers.Technical Knowledge: The success of an organization depends on the technical knowledge of its managers. Managers need to have knowledge about new and emerging technologies so that they can use them to enhance the organization's capabilities. In addition, managers need to know how to apply this technical knowledge to improve the organization's structure and operations.Flexibility: Flexibility is a crucial component in the organization's design process. The managers need to design the organization that is flexible enough to adapt to new changes and technologies. This will help the managers in keeping up with the rapidly changing business environment.Employee's Well-being: The well-being of employees is also a significant issue in the organization's design process. The managers need to design the organization in a way that the employees can work efficiently, and their personal needs are also met. This will help in improving the employee's productivity and motivation level and ensure their loyalty to the organization.For more such questions on Globalization
https://brainly.com/question/9761659
#SPJ8
Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10 10 % 8 % 2 0.20 13 % 7 % 3 0.20 12 % 6 % 4 0.30 14 % 9 % 5 0.20 15 % 8 % The expected rates of return of stocks A and B are _____ and _____, respectively. Multiple Choice 7.7%; 13.2% 14%; 10% 13.2%; 9% 13.2%; 7.7%
Answers
The expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
The expected rate of return refers to the profit or loss that an investor can anticipate on an investment.
The expected rate of return of stocks A will be:
= 0.1(10%) + 0.2(13%) + 0.2(12%) + 0.3(14%) + 0.2(15%)
= 13.2%
The expected rate of return for stocks B will be:
= 0.1(8%) + 0.2(7%) + 0.2(6%) + 0.3(9%) + 0.2(8%)
= 7.7%
In conclusion, the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
Read related link on:
https://brainly.com/question/25218364
estion 1 Describe four demerits of incomplete records. (4 marks) (b) Becky, a sole trader, does not keep proper books of accounts. From your investigati discovered that she kept a small notebook into which she recorded all cash receipts payments for the year ended 31 March 2022. Receipts Cash in hand Sales Trade receivables Capital introduced Receipts and Payments Account GHe Payments 0 Shop premises Shop fittings Inventory Trade receivables Trade payables Rent prepaid Electricity bill outstanding 11,500 Rent 62,000 Communication expenses 32,500 Electricity 15,000 Purchases Trade payables 121,000 Insurance Drawings Sundry expenses Shop fittings Cash in hand Her assets and liabilities at the beginning and at the end of the year were a- 31/03/2022 31/03/ GH¢ 205,000 33,500 65,500 13,000 5,500 1,800 300 GH 225. 26 60 Discount received and discount allowed were GH¢800 and GH¢1,C Cost of goods returned by trade debtors were GH¢1,500. Cost of goods returned to trade creditors amounted to GH¢1,200. Capital introduced during the year amounted to GH¢15,000. re required to prepare: Statements of affairs as at 31 March 2021 and 31 March 2022 [8 ma A statement of profit or loss for the year ended 31 March 2022. [8 n [Total
Answers
Answer:
(a) Demerits of incomplete records:
1. Incomplete records make it difficult to track the financial performance of a business accurately, which can lead to poor decision-making.
2. It becomes challenging to prepare financial statements such as the income statement, balance sheet, and cash flow statement, making it difficult to assess the financial health of the business.
3. Incomplete records can lead to errors and inaccuracies in tax filings, which can result in penalties or legal issues.
4. It becomes difficult to identify fraudulent activities such as embezzlement, theft, or financial mismanagement, leading to financial losses.
(b) Based on the information provided, the following statements and calculations can be prepared:
Statement of Affairs as at 31 March 2021:
Assets:
Cash in hand: GH¢ 300
Trade receivables: GH¢ 5,500
Inventory: GH¢ 13,000
Shop fittings: GH¢ 33,500
Total assets: GH¢ 52,300
Liabilities:
Trade payables: GH¢ 1,21,000
Rent prepaid: GH¢ 11,500
Electricity bill outstanding: GH¢ 0
Total liabilities: GH¢ 1,32,500
Capital: GH¢ 2,05,000
Statement of Affairs as at 31 March 2022:
Assets:
Cash in hand: GH¢ 1,800
Trade receivables: GH¢ 65,500
Inventory: GH¢ 33,500
Shop fittings: GH¢ 33,500
Total assets: GH¢ 1,34,300
Liabilities:
Trade payables: GH¢ 0
Rent prepaid: GH¢ 0
Electricity bill outstanding: GH¢ 15,000
Total liabilities: GH¢ 15,000
Capital: GH¢ 2,25,300
Statement of Profit or Loss for the year ended 31 March 2022:
Cash receipts: GH¢ 2,05,000
Capital introduced: GH¢ 15,000
Total income: GH¢ 2,20,000
Expenses:
Purchases: GH¢ 1,21,000
Rent: GH¢ 62,000
Communication expenses: GH¢ 32,500
Electricity: GH¢ 15,000
Sundry expenses: GH¢ 1,800
Drawings: GH¢ 60
Cost of goods returned to trade creditors: GH¢ 1,200
Total expenses: GH¢ 2,32,760
Net loss: GH¢ 12,760
Hope this helps!
Johnson Motors' bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon rate is 8 percent. The bonds have a yield to maturity of 9 percent. What is the current market price of these bonds?
Answers
Answer:
$935.83
Explanation:
market price of the bonds:
PV of face value = $1,000 / (1 + 9%)¹⁰ = $422.41
PV of coupon payments = $80 x 6.4177 (PV annuity factor, 9%, 10 periods) = $513.42
current market price = $935.83
Since the market rate is higher than the coupon rate, the bonds will be sold at a discount.
Studying products for similarities or differences is known as ______ shopping.
-Marginal
-Comparison
-Emotional
-Research
Answers
It's a form of research to look at products from different websites, but comparison means when you are comparing two things.
My answer would be B. Comparison
Studying products for similarities or differences is known as Comparison shopping. Option B. This is further explained below.
What is Comparison shopping.?Generally, Comparison shopping is simply a typical technique in which buyers check the prices of various things from several stores before making a purchasing choice.
In conclusion, Comparison shopping is the process of examining things for similarities and differences.
Read more about Comparison shopping https://brainly.com/question/3610890
#SPJ2
Select the correct answer.
Diversity awareness is the ability to understand and respect other cultures. Which interpersonal skill might be affected by a lack of diversity
awareness?
ОА
teamwork
OB
time management
OC goal-setting
OD self-representation
Answers
Answer:
Teamwork
Explanation:
What does “Barbarian” mean?
Answers
what is the definition of REO
Answers
Answer:
Real estate owned
Explanation:
It is property owned by a lender, such as a bank, that has not been successfully sold at a foreclosure auction.
Answer:
REO stands for real estate owned
Explanation:
Real estate owned, a property owned by a lender because it failed to sell in a foreclosure auction after the borrower defaulted on their mortgage.
which stage of short run production is efficient? why?
Answers
The range of variable input employment where marginal utility of variable factor is dropping yet positive is efficient area of production located. This manufacturing stage is rational or economic stage.
What exactly is a job?A compensated cooperative work agreement here between recruiter and also an employee is called an employment. This phrase refers to a person who is hired by an organization to perform labor or duties in exchange for a wage or other kind of payment.
What is the name of employment?The terms business, calling, métier, profession, pursuit, and work are some frequent synonyms for employment. Employment denotes labor in which one has been hired and is receiving compensation from an employer, despite the fact that all of these phrases refer to "a specific ongoing activity engaged in expressly to earn one's livelihood."
To know more about employment visit:
https://brainly.com/question/17459074
#SPJ1
Some people include a letter of last instruction in their estate planning. What is likely TRUE about this letter?
a) It lists all of the medical interventions needed before decisions about the person’s end-of-life plans are decided.
b) This letter is always legally binding, with legal questions rarely coming into play.
c) It gives family members important information, such as where the person wants to be buried.
d) This letter lists who has power of attorney and, therefore, who receives any leftover money or land.
Answers
Answer:
C
Explanation:
A Letter of Last Instruction (LOLI) serves to give family important information such as where the person wants to be buried, instructions for any pets, or location of important legal documents.
Side note: this is not a will, and should not be used as a substitution for one. A will is a legal document, a LOLI is not.
Hope this helps! Let me know if you have any further questions about my response.
It gives family members important information, such as where the person wants to be buried. Therefore, This statement is True about letter of last instruction .
What is a Letter of Last Instruction?
A Letter of Last Instruction (LOLI) serves to give family important information such as where the person wants to be buried, instructions for any pets, or location of important legal documents. A will is a legal document, a LOLI is not. A letter of instruction isn't legally binding in any way, unlike a last will. Rather, it's meant to be something of a crib sheet for the executor of your will or your loved ones.
Therefore, (C) option is the correct answer.
To learn more about Letter of Last Instruction,refer here :
https://brainly.com/question/27936609
#SPJ2
Given the points (-4,8) and (6,-12)
Answers
Answer:
N/A
Explanation:
What is the question. There is nothing to answer.
tough Rock Ltd. needs to acquire a piece of drilling equipment which will cost the company $55,000. It is estimated that in 14 years’ time the machine can be salvaged for $5,500. The company’s bank has agreed to advance funds for the entire purchase price at 6 percent per annum payable in equal installments over the 14 years. Alternatively, the machine could be leased over the 14 years from the manufacturer, by way of an operating lease with annual lease payments of $4,250. The company’s tax rate is 25 percent, and its cost of capital is 12 percent. The equipment has a CCA rate of 20 percent. If the machine is owned, annual maintenance costs will be $550.
Answers
Before deciding upon whether to purchase or lease drilling equipment, a helpful analysis entails cogitating the respective net present values (NPV) of both options while minding the business's cost of capital at 12%.
Option 1: Buying• Initial expenditure: $55,000
• Yearly loan payment approximating $5,936.98 (at 6% interest over 14 years).
• Annual maintenance expenditure: $550.
• Tax savings from Capital Cost Allowance (CCA): Highest in Year 1 with approximately $8,250, relenting afterwards.
• Salvage value - $5,500.
Option 2: Leasing• Yearly lease installment: $4,250.
• Tax savings from lease repayment amounting to around $1,062.50.
• Net annual leasing payment tallying – $3,187.50.
Calculate and analyze each course of action’s NPV.
Choose whichever offers the elevated NPV accounting for any stipulated information and suppositions; still, it is fundamental for one to take stock of other boundaries such as market moods, interest levels, and fisc regulations, in order to obtain an informed judgment on the matter.
Read more about leasing here:
https://brainly.com/question/29353358
#SPJ1
Help ASAP
Applying the conept of "Thinking at Margin" which of the following statements are relevant for a TV manufacturer to make a decision:
the average revenue of a television is $114.55
the average cost of 10 televisions is $100 each, while the 11th one requires the hiring of an extra truck for deliveries at $50
the total cost of a television is $1104.55
the average cost of a television is $104.55
Answers
Applying the concept of "Thinking at Margin", the relevant statement for a TV manufacturer to make a decision is: the average cost of 10 televisions is $100 each. Option C. This is further explained below.
What is Thinking at Margin?Generally, It implies giving some thought to the next move you will take. "extra" is the meaning of the term "marginal." On a hot day, the first glass of lemonade you drink satisfies your thirst, but the subsequent glasses may not have the same effect.
When you ponder at the margin, you are contemplating what the next or subsequent action will entail for you personally.
In conclusion, Using the "Thinking at Margin" methodology, the important statements for a television maker to consider while making a choice are as follows: the typical cost of producing 10 TVs is $100 apiece. Alternative C
Read more about Thinking at Margin
https://brainly.com/question/4468044
#SPJ1
Do you think teams are a valuable new management technique that will endure, or are they just a fad that will be replaced with something else in the near future?
Answers
Teams are a valuable management technique that is likely to endure, but their implementation may change as the needs of organizations and the workforce evolve.
Are teams valuable management techniques that will endure?Teams have been a valuable management technique for decades, and their popularity has only increased over time. Teams can bring together individuals with different skills and perspectives, enabling them to work collaboratively to achieve a common goal. Additionally, teams can foster innovation and creativity, as well as promote a sense of ownership and accountability among team members.
There is no reason to believe that teams will become less important in the future. In fact, with the rise of remote work and the need for organizations to be more agile and adaptable, teams are likely to become even more prevalent. However, it is possible that the way teams are managed and organized may evolve over time, as new technologies and management theories emerge.
Learn more on management technique here;
https://brainly.com/question/1276995
#SPJ1
Using the appropriate tool from the Accountant Tools menu, which 4 of the following can be batch reclassified in QuickBooks Online Accountant?
Answers
Using the appropriate tool from the Accountant Tools menu, the 4 options that can be batch reclassified in QuickBooks Online Accountant are options A, B, C and F:
ClassesCustomersProducts and ServicesAccountWhat is QuickBooks Online Accountant?In the above question, too batch reclassify these items, you can use the "Batch Reclassify Transactions" tool, which can be found under the Accountant Tools menu.
This tool allows you to select multiple transactions and reclassify them to a different account, class, customer, or product/service.
Therefore, Locations, tax codes, and suppliers cannot be batch reclassified using this tool. However, you can edit individual transactions to change their location, tax code, or supplier if necessary.
Learn more about QuickBooks Online from
https://brainly.com/question/24441347
#SPJ1
See full question below
Using the appropriate tool from the Accountant Tools menu, which 4 of the following can be batch reclassified in QuickBooks Online Accountant?
Classes
Customers
Products and Services
Locations
Tax Code
Account
Suppliers
Given the information below, calculate the net cash provided from operating activities for Baskin Peter Pty. Ltd.
Receipts from customers $279,247
Payments for property, plant & equipment $42,310
Interest paid $4,231
Proceeds from issue shares $25,836
Payments to supplier and employees $220,013
Repayment of borrowings $53,331
GST paid $16,924
Payments for motor vehicle $37,985
Interest received $6,770
Select one:
$61,773
$44,849
$55,345
$49,080
Answers
The cash inflows from operating activities are:
Receipts from customers: $279,247
Interest received: $6,770
Total cash inflows from operating activities: $286,017
The cash outflows from operating activities are:
Payments to suppliers and employees: $220,013
GST paid: $16,924
Total cash outflows from operating activities: $236,937
Therefore, the net cash provided from operating activities is:
Net cash provided from operating activities = Cash inflows from operating activities - Cash outflows from operating activities
Net cash provided from operating activities = $286,017 - $236,937
Net cash provided from operating activities = $49,080
Therefore, the net cash provided from operating activities for Baskin Peter Pty. Ltd. is $49,080.
So the answer is D) $49,080.
Jamie Kerr is an hourly employee of Noonan Company located in Los Angeles. This week, Kerr had to travel to the company's regional office in Santa Fe. He left Sunday at noon and arrived in Santa Fe at 3:30 P.M. During the week, he worked his normal 40 hours in the Santa Fe office (Monday through Friday-9 A.M. to 5 P.M.). In addition, he attended the company's 3½-hour work training session on Wednesday evening. Kerr's hourly rate of pay is $26.90 per hour.
Round the interim computations to two decimal places and use the rounded answers in subsequent computations. Round the final answers to the nearest cent.
a. Kerr's overtime earnings for the week are
b. Kerr's total earnings for the week are
Answers
a) Kerr received $164.78 in weekly overtime pay. Individuals who work for a company and receive compensation are called employees. Under the heading "Income from salaries," earned salaries are taxable.
How does income relate to salary?For the purposes of income tax, the amount that an employee receives from his employer in any of the following forms during a fiscal year will be considered "Salary": Wages: Wages are a set amount of money that an employer pays its employees in exchange for their work.
In the Netherlands, what is the "30 rule"?Employees recruited from outside the Netherlands to temporarily work here can take advantage of the 30% facility. They are exempt from paying tax on up to 30% of their salary provided they meet the conditions for the 30% facility.
To learn more about income tax here:
https://brainly.com/question/17075354
#SPJ1
Free Cash Flow
100
Growth rate
2%
Tax Rate
1%
Cost of Capital
5%
Debt-to-total value
50%
Given the data in the above, what is the terminal value of the business (using the growing perpetuity formula)?
Answers
Answer:
Explanation:
Terminal value of business Formula = FCF (1+g)/(WACC- g)
Where:
FCF= current free cash flow = 100
g= Growth rate = 2%
WACC = Weighted average cost of capital = Cost of capital = 5%
Terminal Value of the business= FCF (1+g)/(WACC- g)
Terminal Value of the business= 100 (1+2%)/(5%- 2%)
Terminal Value of the business= 3,400
The earnings per share of common stock calculation _____.
(a) is made by dividing net income by the number of shares of common stock outstanding at the end of the year
(b) is complicated by the declaration of cash dividends during the year
(c) includes gains or losses from treasury stock transactions
(d) is complicated by the presence of preferred stock in the capital structure.
Answers
The earnings per share of common stock calculation :(a) is made by dividing net income by the number of shares of common stock outstanding at the end of the year
What is Earnings per common share (EPS)?Earnings per common share is used to determine the amount of profit that a company make or generated . Most companies tend to make use of Earnings per common share to measure their profit at the end of a year.
Earnings per common share can be calculated using this formula
Earnings per common share = Net income / Number of shares of common stock outstanding.
Therefore the correct option is A.
Learn more about Earnings per common share here:https://brainly.com/question/25788016
#SPJ1
QUESTION ONE
ABC Ltd wishes to expand its business. On 31 Dec 2021, the company had
the following existing and proposed capital structures to support the
expansion programme.
1. The existing 8% debt capital has a book value of Ksh 50 000 000 and
matures in 10 years. The market value of debt at the close of business on
31 Dec 2021 was Ksh 40 000 000
2. A ten year loan of Ksh 300 000 000 is to be raised at an interest of 10
percent p.a. A cost of Ksh 20 000 000 will be incurred in raising this loan
3. A 12% preference stock capital stands in the books at Ksh 100 000 000
( 1 000 000 shares) and has a total market value of Ksh 150 000 000.
4. There are 40 000 000 ordinary shares with a current market price of Ksh
1500 each. The firm’s expected earnings per share (EPS) stand at Ksh
200, its growth rate is 6% and has a dividend payout of 60%.
5. The company plans to issue 10 000 000 ordinary shares at a market price
of Ksh 1 500 per share. The cost of floating the shares is estimated at Ksh
10 000 000.
Required:
i) Firm’s current weighted average cost of capital (10 marks)
ii) Firm’s expected weighted average cost of capital after the expansion
programme (i.e. marginal cost of capital) (5 marks)
QUESTION TWO
An investor intends to place Ksh 112,000,000 in the 91 days Treasury bill at a quoted rate/yield of 7.65%
p.a.
Required:
a) Compute the investor’s return, assuming that he is withholding tax-payer
b) Compute the investor’s return, assuming that he is non-withholding taxpayer (6 marks)
Answers
Answer:
rat
Explanation:
Note that common skills are listed toward the top, and less common skills are listed toward the bottom. According to O*NET, what are common skills needed by Postsecondary Education Administrators? Check all that apply.
speaking
active listening
reading comprehension
science
critical thinking
quality control analysis
Answers
According to O*NET, the common skills needed by Post-secondary Education Administrators are: Speaking, Active listening, Reading comprehension, and Critical thinking.
Administrators in postsecondary education help students with a range of activities, including class registration and admissions application completion.
Administrators in postsecondary education are in charge of faculty research, academics, and student services in colleges and universities.
To know more about Post-secondary education here
https://brainly.com/question/2516221
#SPJ1
1. You are an adult employed in your favorite career. You earn
$15.00 per hour. Every hour over 40 per week, you earn
1.5 times your current rate. Based on the schedule listed
below, how much money did you earn last week
Answers
Assuming you worked 50 hours last week, the total amount of money that you earned based on the work rate described above, is $825.
When you work for 40 hours in a week, you are normally paid $15 for each of those hours. This means that out of the 50 hours you worked, the normal salary you made was:
= Number of hours in week x Amount per hour
= 40 x 15
= $600
The total amount of hours you worked over 40 was:
= 50 - 40
= 10 hours
For these 10 hours, you are paid 1.5 your normal rate of $15 per hour which means that you made:
= 10 x 15 x 1.5
= $225
The total you made was therefore:
= Normal salary x Amount earned for working over 40 hours
= 600 + 225
= $825
In conclusion, you earned $825 last week.
Find out more at https://brainly.com/question/11065673.
demarco and tanya have received information about the separate mortgage offers. In two or three paragraphs describe your recommendation for the best financial choice in their situation.
Answers
There are a few fundamental elements to be kept in mind when assessing potential mortgage offers, which include:
How to make the recommendationInterest rate: This is one of the key components to ponder upon when evaluating different mortgages. A lower interest rate entails smaller monthly payments as well as a decrease in sum spent on interest overall during the duration of the loan.
Loan term: The length of the loan is another aspect that should not go unnoticed. When opting for a briefer loan, more money will be spent towards monthly payments but correspondingly less towards interest. However, if you desire a longer period, then the opposite is true with fewer monthly payments but expenditure on interest increases.
Closing costs: It is essential to take closing fees into consideration since they can end up reaching staggering heights. Closing costs refer to every single amount related to taking out a mortgage and ought to be given due thought before deciding on an offer.
Read mroe on mortgage offers here:https://brainly.com/question/30820217
#SPJ1
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $160,200 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% of the first $7,000 paid to its employee and SUTA taxes are 3% of the first $8,500 paid to its employee.
Gross Pay through August 31 Gross Pay for September
a. $ 6,400 $ 800
b. 18,200 2,100
c. 153,900 8,000
Compute BMX’s amounts for each of these four taxes as applied to the employee’s gross earnings for September under each of three separate situations (a), (b), and (c). (Round your answers to 2 decimal places.)
Answers
To calculate BMX Company's amounts for each of the four taxes as applied to the employee's gross earnings for September, we will use the provided tax rates and the gross pay for each situation.
Situation (a):
Gross Pay for September: $800
FICA Social Security taxes: 6.2% of the first $160,200 = 0.062 * $800 = $49.60
FICA Medicare taxes: 1.45% of gross pay = 0.0145 * $800 = $11.60
FUTA taxes: 0.6% of the first $7,000 = 0.006 * $800 = $4.80
SUTA taxes: 3% of the first $8,500 = 0.03 * $800 = $24.00
Situation (b):
Gross Pay for September: $2,100
FICA Social Security taxes: 6.2% of the first $160,200 = 0.062 * $2,100 = $130.20
FICA Medicare taxes: 1.45% of gross pay = 0.0145 * $2,100 = $30.45
FUTA taxes: 0.6% of the first $7,000 = 0.006 * $2,100 = $12.60
SUTA taxes: 3% of the first $8,500 = 0.03 * $2,100 = $63.00
Situation (c):
Gross Pay for September: $8,000
FICA Social Security taxes: 6.2% of the first $160,200 = 0.062 * $8,000 = $496.00
FICA Medicare taxes: 1.45% of gross pay = 0.0145 * $8,000 = $116.00
FUTA taxes: 0.6% of the first $7,000 = 0.006 * $8,000 = $48.00
SUTA taxes: 3% of the first $8,500 = 0.03 * $8,000 = $240.00
Please note that the calculations are based on the information provided, and the amounts are rounded to 2 decimal places.
for more questions on BMX
https://brainly.com/question/15897368
#SPJ11
Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $38,000. The truck will be valueless after 6 years. The interest rate your company can earn on its funds is 7%.a. What is the present value of the cost of leasing?b. Is it cheaper to buy or lease? c. What is the present value of the cost of leasing if the lease payments are an annuity due, so the first payment comes immediately? d. Is it now cheaper to buy or lease? a) Present value of lease b) Is it cheaper to buy or lease? c) Present value of lease d) Is it now cheaper to buy or lease?
Answers
Answer:
Landscaping Company
a. The present value of the cost of leasing is:
= $37,179.01.
b. It is cheaper to lease than to buy.
c. The present value of the cost of leasing if the lease payments are an annuity due is:
= $39,781.54.
d. It is now cheaper to buy than to lease.
Explanation:
a) Data and Calculations:
Annual cost of leasing a truck = $7,800
Lease period = 6 years
Purchase cost of the truck = $38,000
Salvage value after 6 years = $0
Interest rate on company funds = 7%
N (# of periods) 6
I/Y (Interest per year) 7
PMT (Periodic Payment) 7800
FV (Future Value) 0
Results
PV = $37,179.01
Sum of all periodic payments = $46,800.00
Total Interes = $9,620.99
Present of an Annuity Due:
Results
PV = $39,781.54
Sum of all periodic payments = $46,800.00
Total Interest = $7,018.46
2. How would each of the following affect the demand for money ? a a tax on bonds held by individuals b . a forecast by the Central bank that interest rates will rise sharply in the next quarter
Answers
Feeling regret or concern after making a large purchase
Answers
Answer:
You are feeling buyer's remorse. This is normal and it is ok to feel this way. Money comes and goes you will have the money back soon.
First to answer get brainliest
Answers
Answer:
Heey .
Explanation:
Answer:
hhhhhhhhhhhhhhhhhhhhhhh
Explanation:
JSBSNNWJWBE bsbsnnsnsnshshshhsh. e eej