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ser-zykov [4K]
1 year ago
14

Who benefits from deducting the amount paid in state income tax from their income for purposes of computing federal income tax?

Business
1 answer:
Nonamiya [84]1 year ago
3 0

The person that benefits from deducting the amount paid in state income tax from their income for purposes of computing federal income tax is  option a: Everyone who must pay state income tax.

<h3 /><h3>What are Income tax in the United States?</h3>

Income taxes in the United States is known to be a kind of a tax that is often imposed by the federal government, as well as a lot of states.

Note that  the income taxes are said to be set by applying a tax rate as income increases,  and as such,

Therefore, The person that benefits from deducting the amount paid in state income tax from their income for purposes of computing federal income tax is  option a: Everyone who must pay state income tax.

Learn more about federal income tax   from

brainly.com/question/1601662

#SPJ1

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Your firm needs a machine which costs $260,000, and requires $47,000 in maintenance for each year of its 10 year life. After 5 y
Aleks04 [339]

Answer:

nominal tax shield in year 10: 6,812 dollars

present value of the tax shield: 1,837.49

Explanation:

the nominal tax shield in year 10:

We look into the MACRS table for 10-years property class: 6.55%

The depreciation expense for this year is 260,000 x 6.55% = 17,030

Then this produces a tax shield of 40% 6,812

The nominal tax shield at year 10 is 6,812 dollars

considering time value of money today this tax shield is worth:

\frac{6812}{(1 + 0.14)^{10} } = PV  

PV: 1,837.49

3 0
3 years ago
Production estimates for July are as follows:
LenKa [72]

Answer:

d. 234,000 lbs. of A; e. 39,000 lbs. of B

Explanation:

For computing the number of pounds first we have to find out the production units which is shown below:

Production units = Sales units + ending inventory units - beginning inventory units

= 76,000 units + 10,500 units - 8,500 units

= 78,000 units

Now number of material pounds required is

Direct material            A          B  

One unit requires           3 lbs 1 ÷ 2 lbs

Multiply 78000 unit requires   234,000 39,000

We simply multiplied the production units with the required unit of each material i.e A and B so that the accurate number of pounds could arrive

6 0
3 years ago
Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total costs p
mylen [45]

Answer:

It is cheaper to make the units in-house.

Explanation:

Giving the following information:

Make in-house:

Direct material $ 8

Direct labor 24

Overhead 40

Total costs per unit $72

Buying price= $60

<u>We need to determine which option provides the lower cost. Because 40% of overhead will remain constant, we have to take it out of the equation.</u>

<u>Production cost:</u>

Direct material $ 8

Direct labor 24

Overhead= 40*0.6= 24

Total production cost= $56

It is cheaper to make the units in-house.

8 0
3 years ago
Below are transactions for Wolverine Company during 2021.
zimovet [89]

Answer:

a.Unearned revenue $1,550

Service revenue $1,550

b. Dr Insurance expense $6,060

Cr Prepaid insurance $6,060

c. Dr Salaries expense $2,100

Cr Salaries payable $2,100

d. Dr Interest expense $175

Cr Interest payable $175

e. Dr Supplies expense $3,000

Cr Supplies $3,000

Explanation:

Preparation to Record the necessary adjusting entries at December 31, 2018, for Wolverine Company.

a.Unearned revenue $1,550

Service revenue $1,550

($3,100/2)

(Being to record rent revenue)

b. Dr Insurance expense $6,060

Cr Prepaid insurance $6,060

($12,120*6/12)

(Being to record insurance expense l

c. Dr Salaries expense $2,100

Cr Salaries payable $2,100

(Being to record salaried expense)

d. Dr Interest expense $175

($10,500*10%*2/12)

Cr Interest payable $175

(Being to record Interest expense)

e. Dr Supplies expense $3,000

Cr Supplies $3,000

($910+$2,500-$410)

(Being to record Supplies expense)

8 0
3 years ago
Brittany, an accrual basis taxpayer, operates a small distribution business. Her records show the following income items for the
Butoxors [25]
Her gross income is $65,975.00 
4 0
3 years ago
Read 2 more answers
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