Answer:
$160
Explanation:
The way 401(k) savings work is that employees can save from their earnings before tax is deducted, which means that on the $200 saved no tax is deducted, hence, the take of the employee reduces by $200
When there are savings, a tax of 20% would have been deducted from the $200, as a result, the employee would be left with $160($200-($200*20%)), which means that take-home would reduce by $40, the amount tax deducted.
The reduction in take-home=$200-$40
The reduction in take-home=$160
Answer:
The total budgeted fixed selling and administrative expenses for February is $170,400. The answer is D.
The calculation is as follows:
a) Advertising - $50,100
b) Executive Salaries -$60,100
c) Depreciation - $20,100
d) Others - $40,100
Total = $170,400.
Explanation:
To obtain the above answer, we add up all the budgeted fixed selling and administrative expenses, excluding variable elements.
Fixed costs are costs which do not vary according to the level of production or activity.
Since the other elements of cost, e.g sales commision, shipping, and part of advertising are variable, these are excluded in getting the fixed selling and administrative expenses.
Answer:
C. $ 0.
Explanation:
Provided that
Book value of the old machine = $81,300
The Fair value of the old machine = $91,400
So, we can see that there will be a gain of
= Fair value - book value
= $91,400 - $81,300
= $10,100
But this gain would not be recognized in case of lacking commercial substance. So, there would be zero gain or loss
The interest receivable should be reported separately as a current asset. The allowance for doubtful accounts should be deducted from accounts receivable.
Answer:
Preemptive rights mean:
- existing shareholders are guaranteed an opportunity to retain their proportional share of ownership.
- management can preempt the right of shareholders to receive dividends if earnings are down.
Explanation:
Preemptive rights are a clause in an option, security or merger agreement that gives the investor the right to maintain his or her percentage ownership of a company by buying a proportionate number of shares of any future issue of the security.
In that case,
- existing shareholders are guaranteed an opportunity to retain their proportional share of ownership.
- management can preempt the right of shareholders to receive dividends if earnings are down.
