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3 years ago

The marginal tax rate is equal to the_______.

Business

1 answer:

Greeley [361]3 years ago

3 0

Answer:

The correct answer is option d.

Explanation:

The marginal tax rate is the ratio of change in the tax rate and change in the tax base. In other words, it is the ratio of change in an individual's tax payment and change in his/her taxable income.

It can be defined as the tax rate on an additional dollar of income. If the marginal tax rate increases with the increase in income, the taxation system is progressive.

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For the year ended December 31, a company had revenues of $187,000 and expenses of $109,000. $37,000 in dividends were paid duri

Dovator [93]

Answer:

D) Debit income summary 187000, credit revenues 187000

Explanation:

When dividend is declared, following journal entry is passed

Retained Earnings Dr.

To Dividend Payable

(Being declared dividend recorded)

When dividends are actually paid, the journal entry is

Dividend Payable A/C Dr.

To Cash A/C

(Being dividend paid recorded)

Income summary account is prepared as a temporary account while income statement represents permanent account.

Income summary shows net income balance i.e Revenue less expenses.

As per the given information in the question, debiting income summary account with total revenues of $187000 would be wrong.

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3 years ago

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld? federal

andre [41]

Gross pay is the amount of income before taxes and deductions. The amount by which the gross pay is reduced is $174.66.

<h3>What is gross pay?</h3>

The gross pay is the amount of salary or wages that is before the taxes or other deductions. The expense of tax and deductions are subtracted from the gross pay to calculate the net pay.

The gross pay of Marquis in the given question is $816. His gross pay will be reduced by the taxes to calculate the net pay.

The amount of reduction will be the sum of all the taxes levied such as federal tax, social security tax, and so on.

Therefore the amount by which the gross pay will be reduced is:

$\begin{aligned} \rm Federal\: tax &= \$92\\\\\rm Social\: security\: tax (\$816\times 6.2\%) &= \$50.592\\\\\rm Medicare\:tax (\$816\times 1.45\%) &= \$11.832\\\\\rm \end$

The state tax is calculated as a percentage of federal tax. The state tax is:

$\rm State \:tax (\$92\times 22\%) &= \$20.24\\$

Therefore the total amount of reduction is:

$\rm Total\:amount\:of\:reduction = \$92 + \$\$50.592 + \$11.832 +\$20.24\\\\\rm Total\:amount\:of\:reduction = \$174.664$

Hence, the correct option is d.

Learn more about gross pay here:

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3 years ago

If a sales associate is working with a buyer in a residential transaction as a customer, not a client, what type of brokerage re

aleksklad [387]

The type of brokerage relationship that must be disclosed between the parties is known as Nonrepresentation.

<h3>What is a Non-representation?</h3>

This refers to the promise that a wrong statement will not be disclosed to one party to mislead them.

Hence, this is what have to be disclosed in type of brokerage relationship between the parties.