Answer:
Salary and Commission compensation benefit has its pros and cons. However, The Company that adopts Salary Compensation benefit might be making a mistake.
Explanation:
If you pay salesmen a straight salary, some may have limited motivation to exceed basic expectations. However, commission based remuneration is pro performance in that drive salesmen to set more aggressive goals, work through obstacles and rejection to meet their target for a particular period.
Businesses that pay fixed salaries incur higher overhead costs because you have to pay whether you are making profits or not. But the case is different in Commission based compensation benefit where the risk is shared and commission is only paid when money is made.
The existence of pre-tax cost of debt and post-tax cost of debt is due
to the acknoledgement of the tax benefit from issuing debt.There is no
tax benefit from paying divdends,so it makes no sense talking about
pre-tax,post-tax cost of equity for a firm.When you think about cash
flow to equity you can only assume that the taxes owed by the company
have already been paid.Now, the taxation over the income of the
shareholder is a whole different issue that does not take place in this
discussion,since it is not taken in consideration either in cost of
equity or cost of debt.
Answer:
Part a
2021 = $7,000
2022 = $6,000
Part b
2021 = $5,250
Explanation:
Sum of the year`s digit method provide for higher depreciation in early life of the asset with lower depreciation in later years.
Step 1
<em>Some of digits calculation :</em>
Year Digits
2021 7
2022 6
2023 5
2024 4
2025 3
2026 2
2027 1
Total 28
Step 2
<em>Determine the depreciable amount</em>
Depreciable amount = Cost - Residual value
= $40,000 - $12,000
= $28,000
Step 3
<em>Depreciation expense calculations</em>
2021 = 7 / 28 x $28,000 = $7,000
2022 = 6/ 28 x $28,000 = $6,000
assuming the equipment was purchased on March 31, 2021
2021 = $7,000 x 9/12 = $5,250
Answer:
positively.
Explanation:
The <u><em>correlation </em></u>between education and income is positive a more educated person will always have a better income than one that is not. But along the statistical distribution of this<u><em> correlation</em></u> there are people that <u><em>deviate </em></u>for the curve <u><em>(standar deviation)</em></u> and even though they are educated they do not earn as much money to others that have the same level of education.
