Answer:
PV = $155,343
Explanation:
This question requires application of PV of annuity, according to which:
PV = p [1-(1+r)^-n/r]
P= Periodic Payment
r = rate of period
n = number of periods
r = 3%/12 = 0.25% (monthly), n = 120, P = $1500
PV = 1500 * [\frac{1 - (1 + 0.0025)^{-120}}{0.0025}]
PV = 1500 * 103.5618
PV = $155,343
Answer:
$13,000
Explanation:
Given that:
Jeremy operates a business as a sole proprietorship which uses a cash method of accounting. Now he is planning transfer them into a new corporation in exchange for its stock.
The assets are :
$10,000 of accounts receivable with a zero basis
have a basis of $20,000 and an FMV of $40,000
Liabilities
payable of $12,000
The note payable on medical equipment is $7,000.
Therefore , Jeremy's basis for his stock is : $20,000 -$7,000 = $13,000
since that will reduce the basis by amount of the note payable.
The liabilities payable will be deducted and taken care of by the corporation.
Spending will increase.
Demand will increase.
The consumer confidence index is a measure of how "confident" the population of the United States is in the economic status of the US. Thus, both these values will increase!
Answer:
Gross bonus=$1,148.54
FIT=252.68
OASDI=71.21
HI =16.65
MASS. TAX=58.00
Explanation:
Calculation for the withholding taxes and the gross amount of the bonus
Calculation for gross amount of the bonus
Gross amount of the bonus= [$750/ (1- 0.22 - 0.062 - 0.0145 - 0.0505] - 0.01
Gross amount of the bonus= [$750/ (0.78 - 0.062 - 0.0145 - 0.0505] - 0.01
Gross amount of the bonus= [$750/ 0.653] - 0.01
Gross amount of the bonus=1,148.545-0.01
Gross amount of the bonus=$ 1,148.54
Therefore the Gross amount of the bonus will be $ 1,148.54
Calculation for the withholding taxes
FIT =1148.54 * 22%
FIT=252.68
OASDI= 1148.54 * 6.2%
OASDI=71.21
HI=1148.54 * 1.45%
HI =16.65
MASS. TAX =1148.54 * 5.05%
MASS. TAX =58.00
NET 750.00
[$1,148.54-(252.68+71.21+16.65+58.00)]
Therefore the withholding taxes are:
FIT=252.68
OASDI=71.21
HI =16.65
MASS. TAX = =58.00
