Answer:
Calculate the tax consequence of withdrawal from retirement account.
T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.
Analysis
They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.
Calculation of tax consequences if withdrawal amount is $2,100:
Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.
= $2100 × 35%
= $735
The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.
= $2100 × 10%
= $210
(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)
Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:
Total expenses =$735 + $210
Total expenses = $945
Conclusion
Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.
Answer:
B. $9,600
Explanation:
Calculation to determine the amount he or she will receive
Amount Received=(1000*$10)*[100%-( 5% contingent deferred -1%Decrease in sales charge)
Amount Received=$10000-(100%-4%)
Amount Received=$10000*96%
Amount Received=$9,600
Therefore he or she will receive $9600
Answer:
d. Work in Process Inventory and Factory Overhead.
Explanation:
Direct labor is labor that is directly involved in the production process, for example a machine operator in a factory is supplying direct labor. So when recording direct labor we do so under work in process inventory as that is where the labour is applied.
Indirect labour is one that is not directly involved in the production process, for example office cleaners, building maintenance. Since their contribution is not directly impacting production, indirect labor is recorded under factory overhead.
Answer:
Net present value
Explanation:
Below is the given values:
Net present value is the correct answer.
Initial cost of the project = $31800
Market value of the project = $29600
The difference between these two are = 31800 - 29600 = $2200
Net present value shows that the present value of cash inflows minus cash outflows. Moreover, the present value comes by discounting the cash flows at an applicable discount rate.
Answer:
![\left[\begin{array}{cccc}-&Actual&Variance&Flexible Budget\\Indirect labor&10,760&240F&11,000\\Indirect Materials&7,520&180F&7,700\\Utilities&3,950&450F&4,400\\Supervision&4,200&0&4,200\\dep&1,800&0&1,800\\Prop.taxes&600&0&600\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26Actual%26Variance%26Flexible%20Budget%5C%5CIndirect%20labor%2610%2C760%26240F%2611%2C000%5C%5CIndirect%20Materials%267%2C520%26180F%267%2C700%5C%5CUtilities%263%2C950%26450F%264%2C400%5C%5CSupervision%264%2C200%260%264%2C200%5C%5Cdep%261%2C800%260%261%2C800%5C%5CProp.taxes%26600%260%26600%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Explanation:
Idirect labor 1
Indirect materials 0.7
Utilities 0.4
fixed per month
supervision 4,200
Dep 1,800
property taxes 600
Units produced
We multiply the variable components rate by the units produced. Then we calcualte the variances
