Answer: The cheaper cost is to <u>hire an additional worker. </u>
Explanation:
Employee:
With an employee, Trent is going to have to pay payroll taxes.
After-tax cost of hiring employee:
= Salary * (1 + Payroll tax)
= 88,000 * ( 1 + 7.5%)
= $94,600
The subtract the income tax from this amount:
= 94,600 * ( 1 - 21%)
= $74,734
Contractor:
With a contractor, only the marginal income tax is accounted for:
= 95,000 * (1 - 21%)
= $75,050
The cheaper cost is to <u>hire an additional worker. </u>
Answer:
option (D) $138,000
Explanation:
Data provided in the question:
Purchasing cost of the machine = $126,000
Additional costs for this machine :
Shipping = $3,000
Installation = $4,000
Testing = $5,000
Now,
The cost of machine that should be reported
= Purchasing cost + Additional costs incurred
= $126,000 + $3,000 + $4,000 + $5,000
= $138,000
Hence,
The correct answer is option (D) $138,000
Answer:
correct option is B. $1,300
Explanation:
given data
loan = $65,000
pay = 2 points
solution
As we know normally point worth = 1%
and they pay 2 point so that
2 point = 2 % = 0.02
so pay at closing for the points will be
pay closing for the points = 0.02 × loan amount .....................1
pay closing for the points = 0.02 × $65000
pay closing for the points = $1300
so correct option is B. $1,300
