Answer:
additional income is $11050 if the business is organized as a partnership rather than as a corporation
Explanation:
given data
investors = 10
own = 10%
earn = $500000
corporate tax rate = 34%
personal tax rate = 35 %
to find out
How much additional spendable income
solution
we find here first income if formed as corporation in hand that is
income if formed as corporation = earn × own ( 1 - corporate tax ) × ( 1 - personal tax )
income if formed as corporation = 500000 × 10% ( 1 - 34% ) × ( 1 - 35% )
income if formed as corporation =$21450
and
income will be taxable if form partnership that is
income if formed partnership = earn × own ( 1 - personal tax )
put here value
income if formed partnership = 500000 × 10% ( 1 - 35% )
income if formed partnership = $32500
so
additional income is $32500 - $21450
additional income is $11050
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Answer:
X is $30,000
Explanation:
First, we need to calculate the Amount ofLoan
Amount of Loan = Car price - Down payment = $100,848 - $30,000 = $70,848
This is the situation of annuity payment for 4 years at a 25% interest rate with equal annuity payment each year.
Now we will use the following formula to calculate the value of X
PV of Annuity = Annuity payment x ( 1 - ( 1 + interest rate )^-numbers of years ) / Interest rate
Where
PV of Annuity = Amount of Loan = $70,848
Interest rate = 25%
Numbers of years = 4 years
Annuity Payment = X = ?
Placing values in the formula
$70,848 = X x ( 1 - ( 1 + 25% )^-4 ) / 25%
$70,848 = X x 2.3616
X = $70,848 / 2.3616
X = $30,000
Answer:
<u>Predatory</u>.
Explanation:
This predatory pricing strategy is used when a company aims to create entry barriers for new competitors, significantly lower the price to gain new customers and drive competitors away. The cons of this strategy is that in addition to being illegal, lost revenue is not always recovered, and there are other factors that drive competitors away, not just price.
