Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $22,000 bill from her accountant for consulting services related to her small business. Reese can pay the $22,000 bill anytime before January 30 of next year without penalty. Assume Reese’s marginal tax rate is 32 percent this year and will be 37 percent next year, and that she can earn an after-tax rate of return of 6 percent on her investments. a. What is the after-tax cost if she pays the $22,000 bill in December?
Answers
Answer:
$14,960
Explanation:
Pay $22,000 bill in December:
$22,000 tax deduction × 32%marginal tax rate = $7,040 in present value tax savings.
After-tax cost= Pretax Cost − Present Value
Tax Savings= $22,00 − $7,040
= $14,960
Therefore the after-tax cost if she pays the $22,000 bill in December will be $14,960
Answer:
$ 14,960.00
Explanation:
By paying the $22,000 in settlement of the accrued bills payment,Reese would have a tax savings equal to the 32% of the amount paid since the payment is tax deductible,the payment would reduce taxable income by $22,000,in effect reduce tax payable by $7,040 (32%*$22,000).
All in all,the after tax cost of the payment is the actual payment of $22,000 less tax savings of $7,040.
After tax cost of bills=$22,000-$7,040=$ 14,960.00
Related Questions
Jay P Horgan Bank holds deposits of $700 million. The current market value of the bank's loans is $500 million. It also holds reserves of $40 million and government bonds worth $100 million. What is the value of the bank's total liabilities?
$700 million
$540 million
$640 million
$800 million
Answers
Answer:
$700 million
Explanation:
From a bank's perspective, liabilities are the money it owes to customers. Customer deposits make up a big proposition of a bank's liabilities. Customer deposits held in the bank are liabilities because the money belongs to customers and not the bank.
The deposits of $700 are the liabilities. Reserves are a part of customer deposits that must be retained at the bank's custody at all times. Bonds are trading assets to the bank.
1. Cash price is $500. After making a down payment of $100, the payments are $50
a month for nine months.(A) total installment price, (B) amount of finance charge, (C) annual percentage rate. Solve for A,B, and C.
a.
b.
C.
Answers
Answer:
12.12%
Explanation:
Given:
Cash price = $500
Down payment = $100
Payments = $50 per month for 9 months
To find:
(A) Total installment price
(B) Amount of finance charge
(C) Annual percentage rate
Solution:
(A) Total installment price:
Total amount to be paid = Down payment + Payments for 9 months
Total amount to be paid = $100 + ($50 x 9)
Total amount to be paid = $550
Therefore, the total installment price is $550.
(B) Amount of finance charge:
The finance charge is the difference between the total amount to be paid and the cash price.
Finance charge = Total amount to be paid - Cash price
Finance charge = $550 - $500
Finance charge = $50
Therefore, the amount of finance charge is $50.
(C) Annual percentage rate:
To find the annual percentage rate, we need to use the following formula:
Finance charge = Total amount to be paid x Annual percentage rate x Time
Where time is the duration of the loan in years.
Since the loan is for 9 months, we need to convert it to years by dividing it by 12.
Time = 9/12
Time = 0.75 years
Substituting the given values, we get:
$50 = $550 x Annual percentage rate x 0.75
Annual percentage rate = $50 / ($550 x 0.75)
Annual percentage rate = 0.1212 or 12.12%
Therefore, the annual percentage rate is 12.12%.
Unlimited liability for sole proprietors means that
Answers
Answer:
Sole proprietors and partners have unlimited liability. The unlimited liability means that if you're unable to repay the debts of the business, your creditors can go after whatever you own
Exam Lesson Name: Retail Industry Fundamentals Credential Exam
Exam number: 000000RR
Exam Guidelines
Exam Instructions
Question 16 of 16:
Select the best answer for the question
16. When distribution team members use replenishment reports to retrieve quantities of items to be sent to stores they
OA. Mixing
B. Sending
OC. Picking
OD. Packing
Answers
Compute the payback period for each of these two separate investments:
a. A new operating system for an existing machine is expected to cost $250,000 and have a useful life of four years. The system yields an incremental after-tax income of $72,115 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000.
b. A machine costs $200,000, has a $13,000 salvage value, is expected to last eight years, and will generate an after-tax income of $39,000 per year after straight-line depreciation.
Answers
Answer:
A. 1.89 years
B. 2.33 years
Explanation:
According to the scenario, computation of the given data are as follows,
(A) After-tax income = $72,115
Expected cost = $250,000
Useful life = 4 years
Salvage value = $10,000
Depreciation Value = ($250,000 - $10,000) ÷ 4 = $60,000
Annual net cashflow = After tax income + Depreciation
= $72,115 + $60,000 = $132,115
Payback Period = Machine expected cost ÷ Annual net cash flow
= $250,000 ÷ $132,115
= 1.89 years
(B) After-tax income = $39,000
Machine cost = $200,000
Useful life = 8 years
Salvage value = $13,000
Depreciation value = ($200,000 - $13,000) ÷ 4 = $46,750
Annual net cashflow = After tax income + Depreciation
= $39,000 + $46,750 = $85,750
Payback Period = Machine expected cost ÷ Annual net cash flow
= $200,000 ÷ $85,750
= 2.33 years
If you were Marshall’s manager how might you increase Marshall’s awareness of the negative impact he is having on his team?
Answers
As Marshall's manager, I would increase his awareness of the negative impact he is having on his team by providing specific and constructive feedback on his behavior and its consequences. This would involve having open and honest conversations with Marshall, highlighting examples of how his actions are affecting team morale, productivity, and collaboration.
In order to effectively address Marshall's negative impact on his team, it is important to approach the situation with clarity and professionalism. By providing specific examples of incidents where Marshall's behavior has caused harm, I can help him understand the direct consequences of his actions. This feedback should be delivered in a constructive manner, focusing on the behaviors rather than attacking his character.
By emphasizing the impact on team dynamics, performance, and overall work environment, Marshall can begin to see the need for change. Additionally, it would be beneficial to discuss alternative approaches and provide guidance on how he can improve his interactions with the team. Ongoing feedback and support from me as his manager can help Marshall recognize the negative impact he is having and encourage him to take steps towards positive change.
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The production of 0d submarines and 0a hospitals..
A) Increases the available resources
b) is productively efficient given the available resources
c) is productively impossible given the available resources
d) is productively ineffient given the available resources.
Answers
The production of 0d submarines and 0a hospitals is productively in effient given the available resources. The answer is OPTION D.
When a company isn't producing at its lowest possible cost per unit, it exhibits inefficient production. The average cost of production, or unit cost, is calculated by dividing all production costs by the quantity of units produced. An economy might produce a lot of boots with low manufacturing costs.
If they were all for the left foot, it would be allocatively inefficient because no one would profit from this. When a different resource allocation may boost output of any good by even one unit while maintaining the same level of other products, that resource allocation may be deemed inefficient.
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he financial statements of Denison Furniture Company include the following items: 2019 2018 Cash $53,500 $53,000 Short-term Investments 29,000 15,000 Net Accounts Receivable 92,000 105,000 Merchandise Inventory 162,000 142,000 Total Assets 532,000 551,000 Total Current Liabilities 235,000 215,000 Long-term Note Payable 62,000 60,000 What is the 2019 cash ratio? (Round your answer to two decimal places)
Answers
Answer:
The cash ratio is calculated by dividing cash and short-term investments by current liabilities.
Cash ratio for 2019 = (53,500 + 29,000) / 235,000 = 0.39
Rounding to two decimal places, the 2019 cash ratio is 0.39.
Explanation:
Use the diagram below to answer the following questions. Assume an initial market price of $4.
a. Identify the initial area of consumer surplus (CS1) when the market price is $4. Next, assume that supply decreases and the market price rises to $5. Draw the new supply curve and then identify the new area of consumer surplus (CS2).
Instructions: (1) Use the tool provided 'CS1' to identify the initial area of consumer surplus. This will drop a small triangle with three endpoints onto the graph. Drag the endpoints to the appropriate position to identify the initial area of consumer surplus. (2) Then use the tool provided 'S2' to draw the new supply curve. (3) Use the tool provided 'CS2' and follow the same process as before to identify the second area of consumer surplus. (graph that needs to be filled out is below)
b. Due to the increase in price, consumer surplus
rises by more than $50
falls by less than $50
rises by less than $50
falls by more than $50
Answers
The above question is about Consumer Surplus. The supply curves have been indicated accordingly.
The Original Consumer Surplus (CS1) = $12.5The new consumer surplus (CS2) = $4.5Due to the increase in the prices, ΔCS falls by less than $50 (Option B)What is Consumer Surplus?The difference between what a consumer is prepared to pay and what they spent for a product is referred to as the consumer surplus. The difference between the market price and the lowest price a producer is prepared to take to create an item is the producer surplus.
The mathematical Expression for Consumer Surplus is given as follows:
CS = 1/2 (Equilibrium Q)(WTP price - Equilibrium price)
WTP - Willingness to Pay ( or Effective Demand)
CS1 = 1/2(5) (9-4)
= 1/2 * 5 * 5
= 25/2
CS1 = $12.5
CS2 = 1/2(4)(9-5)
= 2 *4
CS2 = $8
To determine the extent by which Consumer Surplus is reduced, we say
CS1 - CS2
= 12.5 - 8
ΔCS = $4.5
Hence, because of the rise in prices, Consumer Surplus fell by less than $50.
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Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $2,500
winnings in the bank. The reserve requirement is 10%
.
What is the maximum possible increase in the money supply as a result of your bank deposit?
maximum increase
Answers
Both of these occurrences stop the flow of money from banks to people and from people to banks.so limiting the expansion of the money supply.
His deposit at the bank increased by $2500 since he put his full winnings there. Now, based on the simple deposit multiplier formula, change in deposits is equal to 1/rr × change in reserves.
Change in deposits,
2500/0.05
50,000
Since there is no public money in circulation in this instance of a simple deposit multiplier, an increase in deposits of $2500 results in an increase in the money supply of $50,000.
The following scenarios would result in a less than potential growth in the money supply:
Banks chose to hold onto a portion of their excess reserves.
Some borrowers of loans opt to keep some cash on hand as opposed to depositing it fully in banks.
Both of these occurrences stop the flow of money from banks to people and from people to banks.so limiting the expansion of the money supply. In the first scenario, banks limit the amount of loans they can make to the public by not lending all of their excess reserves to them.
In the second scenario, people keep cash on hand rather than depositing the full amount, which again limits the number of loans that can be made and, in turn, limits the amount of available money in the economy.
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Select the correct answer. How would you write 6 × 6 × 6 × 6 as an exponential expression? A. 6 × 4 B. 6 > 4 C. 6^4 Reset Next
Answers
Answer:6^4
Explanation:there are four of the same number
1. A requested task is subject to be reported when:
Requesting for a screenshot
When it is asking for 3 proofs
When it requests for email address to be submitted
The task requested promote violent and/or illegal activities
Answers
A requested task is subject to be reported when it promotes violent and/or illegal activities. This ensures that any content or actions that pose a threat or violate the law are appropriately addressed and handled. Reporting such tasks helps maintain a safe and secure environment for users and prevents the dissemination of harmful or unlawful content.
Promoting violent and/or illegal activities goes against community guidelines and ethical standards. By reporting such tasks, users can play an active role in upholding the rules and regulations of the platform or community they are a part of. Reporting serves as a mechanism for users to flag content or requests that could potentially harm individuals or society as a whole.
Requesting for a screenshot, asking for three proofs, or requesting an email address submission, on their own, may not necessarily warrant a report. These actions typically serve functional or practical purposes in various contexts. However, it is essential to assess the overall intent and impact of a requested task to determine whether it aligns with ethical standards and legal requirements. If a task requests actions that are potentially harmful or against the rules, it should be reported to the appropriate authorities or platform administrators for further investigation and appropriate action.
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determine your targetarket
Answers
Answer:
A target market refers to a group of customers to whom a company wants to sell its products and services, and to whom it directs its marketing efforts. Consumers who make up a target market share similar characteristics including geography, buying power, demographics, and incomes.
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Which of the following arguments are in favor of active stabilization policy by the government? Check all that apply
Answers
Answer:
D) Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
Explanation:
The Federal Reserve (FED) can respond to excessive pessimism among consumers and businesses by expanding the money supply and lowering interest rates. To deal with excessive optimism they can do the opposite, they can shrink the money supply and increase the interest rate.
Which are 2 open issues that you can view from the Transaction review tab?
Undeposited funds
Unapplied payments
Transactions posted to the wrong period
Reclassified transactions
Transactions without dates
Answers
The two open issues that can be viewed from the Transaction review tab are Undeposited funds and Unapplied payments.
What is undeposited funds?Undeposited funds refer to payments that have been received but have not yet been deposited into your bank account. This could happen if someone pays you with a check, but you haven't had a chance to go to the bank yet. Keeping track of undeposited funds is important because it helps you to accurately reconcile your accounts and ensure that you don't accidentally record the same transaction twice.
What is unapplied payment?Unapplied payments, on the other hand, refer to payments that have been received but haven't been applied to a specific invoice or customer account. This could happen if you receive a partial payment from a customer and haven't yet allocated it to a specific invoice, or if you receive a payment and aren't sure which customer account it belongs to. Keeping track of unapplied payments is important because it helps you to ensure that you're accurately tracking your accounts receivable and that you're not missing any payments.
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Question 3 a. In choosing a supplier of raw materials for operations, there are a number of factors that need to be considered. Mention any three (3) of such factors.
Answers
When choosing a supplier of raw materials for operations, it's important to consider a variety of factors to ensure that you're making the best decision for your business. The factors are Quality, Price, Delivery time and reliability.
Below are three of such factors to consider:
1. Quality: The quality of the raw materials is a vital factor that you should consider when selecting a supplier. The quality of the raw materials will influence the quality of the finished goods produced. As a result, you'll need to ensure that the supplier you choose provides consistent, high-quality raw materials that meet your specifications.2. Price: Cost is an important factor to consider when selecting a supplier. You should ensure that the supplier is providing you with high-quality raw materials at a reasonable cost. It's also important to note that the cheapest supplier may not always be the best option, as quality may be compromised.3. Delivery time and reliability: It's critical to consider the delivery time and reliability of the supplier. The supplier should be able to deliver the raw materials on time and as agreed upon. Delayed deliveries can disrupt your operations, and if they occur frequently, they can damage your business reputation. Reliability is also important to ensure consistent supply and avoid running out of raw materials.For more such questions on supplier
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Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except:
Multiple Choice
FIFO method.
Retail method.
Specific identification method.
LIFO method.
Weighted average method.
Answers
Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except LIFO method. Thus, option D is correct.
What is inventory?Inventory or stock alludes to the merchandise and materials that a business holds for a definitive objective of resale, creation or usage. Stock administration is a discipline fundamentally about indicating the shape and position of loaded merchandise.
The LIFO technique is certainly not an adequate strategy for stock costing under IFRS. monitoring every particular thing in stock and relegating costs exclusively as opposed to gathering things together.
Therefore, option D is correct.
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I got a question since I have 2 teachers my second teacher wants to fail me can she do it apart from my original
Answers
Answer:
i do not think so
Explanation:
Prove that
eπ >πe. (2.1) Hint: Take the natural log of both sides and try to define a suitable function
that has the essential properties that yield inequality 2.1.
Answers
The natural log of both sides and try to define a suitable function that has the essential properties that yield inequality is described below.
How to find?Put f(x)=ln x/x, then f′=1−ln x / x². f′=0 ⟺ 1−ln x=0 ⟺ x=e
Hence,
supₓ f(x)= f(e) =ln e/ e. In particular, this must be >ln π/ π
Therefore,
ln e/ e> ln π/ π ⟺ eπ > πe.
Hence, proved.
What are logarithmic Inequalities ?Inequalities with a logarithm on one (or both) sides are referred to as logarithmic inequalities. They are helpful in analysing scenarios requiring repeated multiplication, such as in the cases of interest and exponential decay, just as exponential inequalities.
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The BRS Corporation makes collections on sales according to the following schedule:
25% in month of sale
71% in month following sale
4% in second month following sale
The following sales have been budgeted:
Sales
April $ 180,000
May $ 110,000
June $ 100,000
Budgeted cash collections in June would be
Answers
Answer:
$110,300
Explanation:
June collections will comprise of
25% of June sales
71% of May sales
4% of April sales
25% of June sales
=25/100 x 100,000
=$25,000
71% of may sales
=71/100 x $110,00
=$78,100
4% of April sales
=4/100 x $180,000
=$7,200
Total June collections
=$25,000 + $78,100 +$7,200
=$110,300
Explain the nature of economic theory
Answers
Answer:
please give me brainlist and follow
Explanation:
Nature of Economic Theory: Economic theory involves generalisations which are statements of general tendencies or uniformities of relationships among various elements of economic phenomena. A generalisation is the establishment of a general truth on the basis of particular experiences.
A well-defined road map to achieving a career goal is a/an:
Answers
Answer:
A career plan
Explanation:
A career plan is kinda like a road map for achieving your career goals!
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Can u give me a list of ethical products that can start a business?
also give me list of creative inventions
Surely guys, if you answer this, you will get a noble prize and you are getting 50!!!!! POINTS, COME ON Answer this, please give good answers please!
Answers
Fifteen percent of the students in a school of Business Administration are majoring in Economics, 20% in Finance, 35% in Management, and 30% in Accounting. The graphical device(s) which can be used to present these data is (are) a. a line chart. b. only a bar chart. c. only a pie chart. d. both a bar chart and a pie chart.
Answers
Answer: d. Both a bar chart and a pie chart.
Explanation:
C Corporation reported accounts receivable balance 600 at the beginning of the year and 850 at the end of the year. Allowance for bad debts was 20 at the beginning of the year and 25 at the end of the year. Sales revenues were $1,900 and bad debt expense was $28 for the year. Net income for the year was $500. How much cash was collected from customers on account
Answers
Answer: $1,627
Explanation:
Cash collected from customers on account is:
= Beginning accounts receivable + Sales - Ending accounts receivable - Bad debt written off
Bad debt written off = Beginning allowance + Bad debt expense for the year - ending allowance
= 20 + 28 - 25
= $23
Cash collected:
= 600 + 1,900 - 850 - 23
= $1,627
Funds left over from a cover dell education savings account after all education expenses are paid to go whom
Answers
Answer:
management of school is one who is responsible to pay for expenses and keep the savings which is remain after deducting of all expenses
What other major trends or forces might affect marketing?
Answers
Answer:some major trends are -
Explanation:There will be increasing complexity in consumer purchasing decisions. ...
Personalization in product design and communications will be more prevalent. ...
Mobile communications are becoming the center of marketing. ...
Transparency will dictate brand-customer relationships.
Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). Age of Receivables A/R Balance Estimated % uncollectible Current $11,000 1% 30-60 days past due 2,400 3% 61-90 days past due 1,700 6% Over 90 days past due 840 10% What bad debt expense should the company report for the current period
Answers
Answer:
$368
Explanation:
Bad debts also known as uncollectible expenses are the portion of the accounts receivable in accrual accounting that have to be written off as they are eventually not paid by the accounts receivable.
One of the ways of estimating bad debt is allowance method , which is expressing a bad expenses as a percentage of credit sales based on experience and past records.
Days past due balance % uncollectible
Current 11,000 1% 110
30-60 days 2,400 3% 72
61-90 days 1,700 6% 102
Over 90 days 840 10% 84
Total 368
Bad debt expenses to be recognized is $368
You have researched your dream around-the-world vacation and determined that the total cost of the vacation will be $33,000. You feel you can earn an APR of 10.8 percent compounded monthly and plan to save $395 per month until you reach your goal. How many years will it be until you reach your goal and enjoy your well-deserved vacation
Answers
Answer:
Explanation:
What 22
Requirement 2. How much is the owner's equity of the property management company? Irene Chan has $ of equity in the property management company?
Answers
The information provided is incomplete as the amount of equity or any specific details about Irene Chan's investment in the property management company are not given. Therefore, without knowing the specific amount or percentage of equity Irene Chan holds in the company.
it is not possible to determine the exact value of the owner's equity or Irene Chan's equity in the property management company.Equity represents the ownership interest in a company and is calculated by subtracting the company's liabilities from its assets. However, since no information is provided regarding the company's liabilities, assets, or Irene Chan's investment.
We cannot calculate the owner's equity or determine Irene Chan's specific equity in the property management company.To accurately determine the owner's equity or Irene Chan's equity, it would be necessary to have additional information about the company's financial statements, investments, and any other relevant details regarding ownership stakes or capital contributions.
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