no they should not 100% correct
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 So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.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:
$120,000
Explanation:
Data provided in the question
Purchase value of an equipment = $120,000
Trade in allowance = $95,000
Paid cash = $25,000
Cost of an old equipment = $110,000
Accumulated depreciation = $33,000
So by considering the above situation, the recorded value of the equipment is $120,000 as the cash is paid for $25,000 and the trade in allowance is $95,000
So it would be equal to the purchase value i.e $120,000
When sales increase by $40,000, operating income will change by $-12,000.
<h3>By how much would operating income change?</h3>
The net operating income is total revenue less direct and indirect expenses. Direct expense is variable cost and indirect expenses are fixed costs.
Operating income = total revenue - variable expenses - fixed costs
Initial operating income: 600,0000 - (0.8 x 600,000) - 130,000 = -10,000
New operating income: (600,000 + 40,000) - [0.8 x (600,000 + 40,000)] - 130,000 = 2,0000
Change in operating income: -10,000 - 2,000 = $-12,000
To learn more about operating income, please check: brainly.com/question/26848906
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Answer:
100
Explanation:
$2 times 100 tacos is equal to $200.
