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Klio2033 [76]
3 years ago
8

Nick is going to be graduating in December and has already accepted a position with a major accounting firm. His employer will p

rovide either a 401k plan with a 2 for 1 match or a lump sum annuity that he can use to invest on his own. Nick chooses the 401k with match. Which reason below validates his rationale?
1. The 401k plan allows him to use pre-tax dollars to invest for his retirement.
2. The annuity may accompany fees, which could reduce the cost of his overall investment.
3. The employer match provides free money from his employer for his retirement.
4. All of the Above are valid reasons
Business
1 answer:
N76 [4]3 years ago
6 0

Answer:

1. The 401k plan allows him to use pre-tax dollars to invest for his retirement.

Explanation:

A 401k plan allows an individual to save money for retirement without paying income taxes for each contribution that he/she makes to the retirement plan. The individual will pay income taxes only after he/she retires and starts withdrawing out of the 401k plan (it is a tax deferred account). Employer's matching of 401k contributions are also taxed once you start withdrawing money. The tax free contributions allow the 401k account to grow faster and earn more money.

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A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage
Mandarinka [93]

The amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.

<h3>What is depreciation expense?</h3>
  • Depreciation expense is the cost of a depreciated asset for a specific period, and it reveals how much of the asset's value was used up in that year.
  • Accumulated depreciation is the entire amount of depreciation expense given to an asset since it was placed in service.
  • A business spends $84,000 on new display racks with a useful life of 7 years (84 months) and no residual value.
  • The corporation would most likely choose a straight-line depreciation technique, which would result in a $1,000 monthly depreciation expenditure ($84,000/84 months = $1,000 per month).

The straight-line technique of calculating depreciation expense is given below:

  • = (Original cost - salvage value) ÷ (useful life)
  • = ($173,000 - $8,600) ÷ (10 years)
  • = ($164,400,000) ÷ (10 years)  
  • = $16,440

In this method, the depreciation is the same for all the remaining useful life.

Now for the 7 months, the depreciation expense would be:

  • = $16,440 × 7 months÷ 12 months
  • = $9,590

Therefore, the amount to be recorded as depreciation expense on December 31, 2021, is (B) $9,590.

Know more about depreciation expenses here:

brainly.com/question/25785586

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The correct question is given below:

A company purchased factory equipment on June 1, 2021, for $173000. It is estimated that the equipment will have a $8600 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2021, is ______.

(A) $16440.

(B)$9590.

(C)$8220.

(D)$6850.

7 0
2 years ago
he Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges
Setler79 [48]

Answer:

(a) The firm's Income tax liability is $59,771.25.

(b) The firm's after-tax income is $233,478.75.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows

The Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges of $69,000, (2) dividends received of $17,250, (3) dividends paid of $20,700, and (4) income taxes. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall 50% of dividends received are tax exempt. What are the firm's income tax liability and its after-tax income?

The explanation to the anwer is now given as follows:

Adjusted taxable income = Income after operation - Interest charges + Taxable dividend received ................. (1)

Where;

Income after operation = $345,0000

Interest charges = $69,000

Taxable dividend received = 50% * $17,250 = $8,625

Substituting the values into equation (1), we have:

Adjusted taxable income = $345,000 - $69,000 + $8,625 = $284,625

(a) Income tax liability = Adjusted taxable income *  Tax rate = $284,625 * 21% = $59,771.25

(b) After-tax income = (Adjusted taxable income - Income tax liability) + (50% of dividend received) = ($284,625 - $59,771.25) +  (50% * $17,250) = $224,853.75 + $8,625 = $233,478.75

3 0
3 years ago
Because advertising is often designed to add ________ value to a product or brand, it plays a more important communications role
nikdorinn [45]

Answer:

Psychological value

Explanation:

Psychological value :

In  psychology Value alludes to the relative significance that an individual places on a thing, thought, individual.

The term value has two related at this point particular implications. In its social-mental significance, conversely, a worth is a dynamic, attractive end express that individuals take a stab at or plan to maintain, for example, opportunity, dedication, or convention.

7 0
3 years ago
Katie is a supervisor at a fast food restaurant. Every week, she submits a progress report to Molly, the restaurant manager, to
GarryVolchara [31]

Answer: Upward communication

Explanation:

Upward communication can be defined as the communication process that occurs from the lower levels to higher levels. In other words, communication flows upwards. Communication is a fundamental aspect of every workplace since it allows us to express everything that is happening at work. When communication occurs effectively, work can be done better and thus give better results. When there is communication, it is also easier to identify possible problems that may arise.

Staying in constant communication helps to make the work environment more comfortable for both, it is important to be able to express everything related to work and receive feedback that only has the intention that everything can go better.

7 0
3 years ago
The following information relates to Bonita Co. for the year ended December 31, 2017: net income 1,298 million; unrealized holdi
tester [92]

Answer: a) $(11.3) million

b)$1,286.7million

c)$40.6 million

Explanation:This does not involve lengthy explanation.

(a) Other comprehensive income for 2017 =unrealized holding loss =available-for-sale securities during the year= $(11.3) million

(b) Comprehensive income for 2017= net income-unrealized holding loss =

$1,286.7million (1,298 - 11.3)

(c) Accumulated other comprehensive income = accumulated other comprehensive income -unrealized holding loss

$40.6 million (51.9 - 11.3)

3 0
3 years ago
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