Answer:
B. people respond to economic incentives.
Explanation:
Economic incentive is material given by someone, that is capable of motivating the other person to behave or act in a certain way. If economic incentives come from a government, it can be in form of tax incentives, subsidies or any monetary gift in form of cash or near cash.
To the economist, human being being rational, will respond to economic incentives in various forms.
Given:
march 1: loaned 40,000 to Hewell Company
loan term, 4 months, 6% interest on note.
On March 31, Harper Company should recognize the interest it will earn from the note of Hewell Company.
40,000 x 6% = 2,400 this is the annual interest
2,400 * 1/12 = 200 monthly interest
March 31
Debit Credit
Interest receivable 200
Interest Revenue 200
Answer:
$311,100
Explanation:
Solution
Recall that:
Assume Chester corp downsized the size of their workforce by = %
The exit interviews cost estimated = 100
Additional normal costs of separation = $5000
Now,
The Total Employee = 305
The Down Sizing = 20%
Thus,
The Total Employee = 305 x 20% = 61 employees
so,
The Separation cost per employees = $5000
The Exit interview cost = $100
Total cost = $5,100
Now,
The total overall cost of separation = 61 employees x total cost of separation per employees
Which is,
= 61 x 5100 = = $311,100
Answer:
a. $99 560 b. $66900 c. option a
Explanation:
Rick deducts on a standard deduction which lowers his income by one fixed amount.
Ricks gross income $131000. He has no one else except himself so no other deductions besides tax.
(a) After tax compensation = Gross income – Deductions(tax)
= $131000 - $131000*24%
The tax percentage is taken from the tax table so rick earns between the tax brackets $84201 to $160725 as we are told he is also single.
=$131000 - $31440
=$99 560 is Ricks after tax compensation or income.
(b) After tax compensation = Gross Income – Deductions(tax) + Benefits
=$80 0000 - $80000*22% +$4500
=$66900 will be Ricks after tax compensation for the other option.
The tax percentage of 22% is taken from the tax schedule on the tax brackets of $39476 to $84200 as the option contains $80000 which rick can potentially earn if he chooses this option.
(C) Rick should take the $131 000 option which is the option calculated first as it has a higher take home pay than the second option with benefits so he can be more satisfied as the bottom option for $80000 charges more tax at a lower amount the tax amounts are much closer in percentages but their difference is greater as it is approximately $51000 so he will benefit more on the first option than the second option.
The answer is 4,563 hope it helps
