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andrey2020 [161]
2 years ago
8

A corporation in a 40% tax bracket invests in the preferred stock of another company and earns a 5% pretax rate of return. An in

dividual investor in a 20% tax bracket invests in the same preferred stock and earns the same pretax return. The after-tax return to the corporation is ________, and the after-tax return to the individual investor is
Business
1 answer:
Allushta [10]2 years ago
4 0

Answer:

The after-tax return to the corporation is __3%______, and the after-tax return to the individual investor is 4%.

Explanation:

A. The after-tax return is the return that is earned by the corporation or individual after the deduction of income tax.  Since the corporation and the individual are in different tax brackets, you will normally expect them to earn different after-tax returns.

B. Calculation of the after-tax returns:

After-tax return = Pre-tax return minus income tax

1. Corporation = (100% - 40%) x 5% = 3%

2. Individual = (100% - 20%) x 5% = 4%

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Jasper Company has 70% of its sales on credit and 30% for cash. All credit sales are collected in full in the first month follow
hjlf

Jasper Company Cash Receipts Budget shows the estimated cash receipts from customers and other sources.

<h3>Cash Receipts Budget for April, May, and June:</h3>

                   April      May       June       Total

Cash Sales 30%    $157,500   $160,500   $168,000    $486,000

Credit Sales 70%    400,000   367,500    374,500    1,142,000

Total             $557,500  $528,000  $542,500  $1,628,000

Calculations:

a) Cash Sales for April = 30% of April Sales = 30% * $525,000 = $157,500. The difference of 70% is received in May.

b) Sales received on account for April = 100% of Accounts Receivable = $400,000.

c) Cash Sales for May = 30% of April Sales = 30% * $535,000 = $160,500. The difference of 70% is received in June.

d) Cash Sales for June = 30% of April Sales = 30% * $560,000 = $168,000. The difference of 70% is received in July.

To learn more about cash receipts visit the link

brainly.com/question/15561219

#SPJ4

3 0
2 years ago
Keynesian economics emphasized that economic downturns could be due to: inflation. T/F?
loris [4]
T. inflation is a very big issue

3 0
3 years ago
On January 15, the end of the first biweekly pay period of the year, North Company's payroll register showed that its employees
Elanso [62]

Answer:

Please check the images attached below

Explanation:

Salaries Payable = (Salariesexpense - Socialsecurity taxes - Medicaretaxes - Incometaxes - MedicalcareInsurance Education - Union dues)

=$28,000−$1,736−$406−$3,800−$678−$190

=$28,000−$6,810

=$21,190

Hence, the salaries payable are $21,190.

Compute the social security taxes using the equation as shown below:

\begin{array}{c}\\{\rm{Social security taxes}} = {\rm{FICA tax rate}} \times {\rm{Salaries expense}}\\\\ = 6.2\% \times \$ 28,000\\\\ = \$ 1,736\\\end{array}  

Socialsecuritytaxes=FICAtaxrate×Salariesexpense

=6.2%×$28,000

=$1,736

​  

Hence, social security taxes are $1,736.

Compute the Medicare taxes using the equation as shown below:

 

Medicaretaxes=Medicaretaxrate×Salariesexpense

=1.45%×$28,000

=$406

​  

Hence, Medicare taxes are $406.

​

4 0
2 years ago
Miller Fruit wants to expand its citrus grove operations. The firm estimates that it needs $8.6 million to buy land and establis
sergeinik [125]

Answer:

2.072 rights

Explanation:

Amount needed to buy the land = $8.6 million = $8,600,000

stock outstanding = 540,000

Market price per share = $34.80

subscription price = $33 a share

Now,

Number shares to be issued = ( Amount needed ) ÷ ( subscription price )

= $8,600,000 ÷ $33

= 260606.06 shares

1 rights will be issued per stock

thus,

number of rights required for purchase

= ( stock outstanding ) ÷ ( Number shares to be issued  )

= 540,000 ÷ 260606.06

= 2.072 rights

3 0
3 years ago
Pollution caused by candles isn't taken into account.Quality improvements as a source of well-being are ignored.GDP doesn't capt
hammer [34]

Answer:

D. The marginal cost of light is zero, and by convention zero-priced goods and services are excluded from GDP

Explanation:

Only things that have a monetary cost are included in GDP. Things that do not cost "anything" in monetary terms are not included, and this is a major shortcoming of GDP.

From an ecological economics standpoint, things like sunlight, air, and water are often not valued and included in GDP. This is the same case as in the question, because the marginal cost of light is zero, then, it is not included in GDP.

3 0
3 years ago
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