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NeTakaya
3 years ago
15

Khalid is a 39-year-old, married business owner who runs a dry cleaning service with three locations. His personal obligations a

re the home that he owns with his wife who works for a well-known insurance company; the health needs of his family; and his commitment toward saving for the future higher education needs of his three children. Khalid knows that two of his locations require a large infusion of cash to pay for new and expensive dry cleaning equipment. Although his wife’s job provides the family with health insurance, it also places the family in a higher income tax bracket. Khalid would certainly like to minimize his taxes. Which of the following forms of business ownership would you suggest for Khalid? Khalid should consider:
A. A sole proprietorship due to the fact that it pays its own taxes and it has limited liability.
B. A sole proprietorship due to the fact that it has unlimited liability and it will protect the family’s personal assets.
C. A corporation because he can avoid the negative aspect of limited liability. Corporations are always taxed at a lower rate than individuals.
D. A limited liability company because he will only be liable for what he has invested in the business. His personal assets will be protected, and he can be taxed like a sole proprietorship.
Business
1 answer:
madam [21]3 years ago
3 0

Answer:

D. A limited liability company because he will only be liable for what he has invested in the business. His personal assets will be protected, and he can be taxed like a sole proprietorship.

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2 years ago
St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% of normal production capacity. Production w
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Answer:

$9,000 unfavorable

Explanation:

The computation of the total fixed overhead variance is shown below:

= Actual fixed overhead costs - Budgeted fixed overhead

where,

Budgeted fixed overhead  is $360,000

And, the Actual fixed overhead cost is computed below:

= Actual fixed overhead × Actual production  ÷ budgeted production

= $360,000 × 11,700 units ÷ 12,000 units

= $351,000

Now put these values to the above formula  

So, the value would equal to

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5 0
2 years ago
(Ignore income taxes in this problem.) Alesi Corporation is considering purchasing a machine that would cost $283,850 and have a
gavmur [86]

Answer:

(A) Payback period for the machine= 3.5 years

(B) Simple rate of return for the machine= 87.5%

Explanation:

Alesu corporation is considering purchasing a machine that would cost $283,850

The useful life is 5 years

The machine would reduce cash operating costs by $81,100 per year

The salvage value is $107,100

(A) The payback period for the machine can be calculated as follows

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= 176,750/5

= 35,350

Annual incremental income= cost savings -depreciation expenses

= 283,850-35,350

= 248,500

Simple rate of return = annual incremental income/cost × 100

= 248,500/283,850 × 100

= 0.875 × 100

= 87.5%

3 0
3 years ago
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2 years ago
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Iteru [2.4K]

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Honestly, business would be much better for you. Learning business will give you many more opportunities and learn how to sell your products. Business will help you with marketing, pricing, discounting, and know how to "not get effed over." I believe that would be much better for you THEN go to fashion college.

8 0
2 years ago
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