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vovangra [49]
3 years ago
11

Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 3

0 percent on the next $20,000; and 40 percent on all income above $70,000. Family A has income of $100,000 while Family B has income of $40,000. The marginal tax rates faced by the two families are?a. Family A: marginal20 percent; average10 percent; Family B: marginal40 percent; average23 percent. b. Family A: marginal20 percent; average15 percent; Family B: marginal40 percent; average20 percent. c. Family A: marginal10 percent; average10 percent; Family B: marginal30 percent; average30 percent. d. Family A: marginal20 percent; average20 percent; Family B: marginal40 percent; average40 percent.
Business
2 answers:
Elena L [17]3 years ago
7 0

Answer:

Family A's marginal tax rate = 40%, average tax rate = 24%

Family B's marginal tax rate = 20%, average tax rate = 10%

Explanation:

Family A's income = $100,000 ⇒ 40%,

total taxes paid = $0 + $2,000 + $4,000 + $6,000 + $12,000 = $24,000, average tax rate = $24,000 / $100,000 = 24%

Family B's income = $40,000 ⇒ marginal tax rate is 20%,

total taxes paid = $0 + $2,000 + $2,000 = $4,000, average tax rate = $4,000 / $40,000 = 10%

<u>income</u>                               <u>marginal tax rate</u>              

$0 - $10,000                                 0%                                  

$10,001 - $30,000                       10%                                

$30,001 - $50,000                      20%                              

$50,001 - $70,000                      30%                                

Above $70,001                            40%                                

Evgen [1.6K]3 years ago
6 0

Answer:

Explanation:

Family A's marginal tax rate = 40%, average tax rate = 24%

Family B's marginal tax rate = 20%, average tax rate = 10%

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A recently issued FASB standard requires that companies recognize revenue when goods or services are_____to customers for the am
tensa zangetsu [6.8K]

Answer:

Transferred.

Explanation:

FASB is an acronym for Financial Accounting Standards Board. The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors. It was founded in 1972 but began operations fully on the 1st of July, 1973 by replacing the Accounting Principles Board (APB) and American Institute of Certified Public Accountants (AICPA).

A recently issued FASB standard known as the core revenue recognition principle, requires that companies recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for those goods or services.

6 0
3 years ago
Managers place a high priority on internal control systems because the systems assist managers in all of the following except: a
gulaghasi [49]

Answer:

b. Assuring that no loss will occur.

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Most businesses want to make profits, therefore certain measures are usually taken to achieve this objective. One such measure used is called internal control systems.

Internal control systems in most organizations includes set of rules, policies, and procedures to be followed by employees to increase efficiency of operations. Achieving increase efficiency would result in lesser losses

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3 years ago
Swifty Corporation purchased a machine for $66000 on July 1, 2020. The company intends to depreciate it over 8 years using the d
Lostsunrise [7]

Answer:

Depreciation expense= $7,612.5

Explanation:

Giving the following information:

Purchase price= $66,000

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<u>First, we need to determine the depreciation expense for the whole year. We will use the following formula:</u>

<u></u>

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Annual depreciation= $15,225

<u>For 2020:</u>

Depreciation expense= (15,225/12)*6= $7,612.5

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bagirrra123 [75]
The correct answer is false.


Hope that helped you! c:
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