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3 years ago

Which of the following is not a payroll tax deduction?

Business

1 answer:

Wittaler [7]3 years ago

8 0

Answer:

The Correct Answer is B.

Sales tax.

Explanation:

Sales tax is the Tax imposed by the government body during the sale of the goods and services at a retail level.

While payroll tax is the tax which is imposed on the salary of the employees and this tax is imposed by the employer. payroll taxes are directly deducted from the salaries of the employees and directly paid to the internal revenue services by the employer.

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Illinois Company is attempting to develop the cost function for repair costs. The following past data are available: Machine Hou

Harlamova29_29 [7]

Answer:

$480

Explanation:

Data provided in the question:

Machine Hours Repair Costs

2,400 $6,385

1,200 $3,480

2,000 $5,285

3,400 $8,980

Now,

Machine Hours Repair Costs

Highest 3,400 $8,980

Lowest 1,200 $3,480

Difference 2,200 $5,500

Unit variable cost = $5,500 ÷ 2,200

= $2.5

Total cost at high level = $8,980

Machine hours highest level = 3,400

Also,

Total cost at high level = Fixed cost + Variable cost at highest level

$8,980 = Fixed cost + [ $2.5 × 3,400 ]

Fixed cost = $8,980 - [ $2.5 × 3,400 ]

= $8,980 - $8,500

= $480

7 0

2 years ago

Both Bond Sam and Bond Dave have 7.3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three

Zarrin [17]

Answer:

Sam change: -5.13%

Dave change -18.01%

Explanation:

If interest rate increase by 2%

then the YTM of the bond will be 9.3%

We need eto calcualte the present value of the coupon and maturity of the bond at this new rate:

For the coupon payment we use the formula for ordinary annuity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment: 1,000 x 7.3% / 2 payment per year: 36.50

time 6 (3 years x 2 payment per year)

YTM seiannual: 0.0465 (9.3% annual /2 = 4.65% semiannual)

$36.5 \times \frac{1-(1+0.0465)^{-6} }{0.0465} = PV\\$

PV $187.3546

For the maturity we calculate usign the lump sum formula:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity: $ 1,000.00

time: 6 payment

rate: 0.0465

$\frac{1000}{(1 + 0.0465)^{6} } = PV$

PV 761.32

Now, we add both together:

PV coupon $187.3546 + PV maturity $761.3154 = $948.6700

now we calcualte the change in percentage:

948.67/1,000 - 1 = -0.051330026 = -5.13

For Dave we do the same:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 36.50

time 40

rate 0.0465

$36.5 \times \frac{1-(1+0.0465)^{-40} }{0.0465} = PV\\$

PV $657.5166

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 40.00

rate 0.0465

$\frac{1000}{(1 + 0.0465)^{40} } = PV$

PV 162.34

PV c $657.5166

PV m $162.3419

Total $819.8585

Change:

819.86 / 1,000 - 1 = -0.180141521 = -18.01%

6 0

3 years ago

You are evaluating two different silicon wafer milling machines. The Techron I costs $245,000, has a three-year life, and has pr

sveticcg [70]

Answer:

Techron I . According to the calculations, Techron I reports a better performance.

Explanation:

Techron I

Cost of Machine = $245,000

Useful Life = 3 years

Annual Depreciation = Cost of Machine / Useful Life

Annual Depreciation = $245,000 / 3

Annual Depreciation = $81,666.67

Salvage Value = $40,000

After-tax Salvage Value = $40,000 * (1 - 0.22)

After-tax Salvage Value = $31,200

Annual OCF = Pretax Operating Costs * (1 - tax) + tax * Depreciation

Annual OCF = -$63,000 * (1 - 0.22) + 0.22 * $81,666.67

Annual OCF = -$31,173.33

NPV = -$245,000 - $31,173.33 * PVIFA(10%, 3) + $31,200 * PVIF(10%, 3)

NPV = -$245,000 - $31,173.33 * 2.4869 + $31,200 * 0.7513

NPV = -$299,084.39

EAC = NPV / PVIFA(10%, 3)

EAC = -$299,084.39 / 2.4869

EAC = -$120,263.94

Techron II:

Cost of Machine = $420,000

Useful Life = 5 years

Annual Depreciation = Cost of Machine / Useful Life

Annual Depreciation = $420,000 / 5

Annual Depreciation = $84,000

Salvage Value = $40,000

After-tax Salvage Value = $40,000 * (1 - 0.22)

After-tax Salvage Value = $31,200

Annual OCF = Pretax Operating Costs * (1 - tax) + tax * Depreciation

Annual OCF = -$35,000 * (1 - 0.22) + 0.22 * $84,000

Annual OCF = -$8,820

NPV = -$420,000 - $8,820 * PVIFA(10%, 5) + $31,200 * PVIF(10%, 5)

NPV = -$420,000 - $8,820 * 3.7908 + $31,200 * 0.6209

NPV = -$434,062.78

EAC = NPV / PVIFA(10%, 5)

EAC = -$434,062.78 / 3.7908

EAC = -$114,504.27

5 0

2 years ago

The Nearside Co. just paid a dividend of $1.20 per share on its stock. The dividends are expected to grow at a constant rate of

masha68 [24]

Answer and Explanation:

The computation is shown below:

a. Current price is

= D1 ÷ (Required return - Growth rate)

= ($1.20 × 1.04 ÷ (0.1 - 0.04)

= $20.8

b. Now the price in three year is

P3 = Current price × (1 + Growth Rate)^3

= $20.8 × (1.04)^3

= $23.40

c. For price in 10 year it is

P10 = Current price × (1 + Growth Rate)^10

= $20.80 × (1.04)^10

= $30.79

We simply applied the above formula

6 0

3 years ago

Gary, Peter, and Chris and have capital balances of $26,000, $38,000, and $30,000, respectively. As per the partnership agreemen

ycow [4]

Answer:

A) $3,429

Explanation:

Bonus capital paid by the new shareholders will be distributed among the Old Partner on the basis of their old sharing ratio

Capital Balance of Peter = $38,000

Settlement amount = $20,000

As we does not have revised profit ratios, Peter and Chris will share profit on their old ratios.

Remaining balance of Gary's capital = $26,000 - $20,000 = $6,000

Peter Share = 4/7 x $6,000 = $3,429

6 0

3 years ago