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3 years ago

Profits from a sole proprietorship are reported as taxable income and

2 answers:

8 0

Profits from a sole proprietorship are reported as taxable income and (B) are subject to a self-employment tax of approximately 15%.

Explanation:

Sole proprietors are asked to contribute to both the Social Security and Medicare systems,this type of contributions is known as the "self-employment taxes."

Self-employment taxes are considered equal to the payroll tax in case of an employees of a business. Regular employees are said to make their contributions to the above mentioned two programs in form of deductions fr, sole proprietors make such contributions when the pay their income tax

The rate of self-employment tax is 15.3%, which is further divided as 12.4% of Social Security and 2.9% of Medicare .

Thus we can say that Profits from a sole proprietorship are reported as taxable income and (B) are subject to a self-employment tax of approximately 15%.

velikii [3]3 years ago

8 0

Answer:

Profits from a sole proprietorship are reported as taxable income and...

are subject to a self-employment tax of approximately 15%.

Explanation:

Textbook!!

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in the gilded age, how did monopolies affect many small businesses? monopolies helped small businesses grow.

astra-53 [7]

In the Gilded age, monopolies affected the small businesses as the monopolies forced small businesses to shut down. A monopoly arises when a single corporation dominates the market for a given product or service.

Monopolies frequently result in the closure of the smaller businesses. One business can regulate the product prices when it controls a particular market. Due to their size, most the monopolizing businesses can afford to reduce their prices so much that no small business can compete. Because of this, the smaller companies are left with no alternative except to shut down or combine with the monopolizing firm.

To learn more about monopolies, click here

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7 0

1 year ago

a company bought a piece of equipment for A200 and expects to use it for eight years. The company that plans to

chubhunter [2.5K]

Answer:

The correct option b. $2,567.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

A company bought a piece of equipment for $49,200 and expects to use it for eight years. The company then plans to sell it for $4,000. The company has already recorded depreciation of $42,632.60. Using the double-declining-balance method, what is the company's annual depreciation expense for the upcoming year? (Round your answer to the nearest whole dollar amount.)

a. $11,300.

b. $2,567.

c. $19,200.

d. $1,642.

The explanation to the answer is now given as follows:

Note: See the attached excel file for the calculation of the annual depreciation expenses.

Double declining depreciation method is an accelerated depreciation technique due to the fact the depreciation expenses are charged faster under it than under straight-line depreciation method.

The depreciation of double declining method is calculated by by multiplying the rate of straight-line depreciation method by 2.

From the question, the already recorded depreciation of $42,632.60 is the accumulated depreciation expenses for the 7th year.

Since the upcoming year is the 8th year which is the last year, the depreciation expense for it can be calculated as by adjusting for the residual value of $4,000 follows:

Equipment cost = $49,200

Accumulated Depreciation = $42,632.60

Residual value = $4,000

Estimated useful life = 8 years

Therefore, we have:

Straight line method depreciation rate = 1 / Estimated useful life = 1 / 8 = 0.125, or 12.50%

Double declining depreciation rate = Straight line method depreciation rate * 2 = 12.50% * 2 = 25%

Beginning book value of the equipment in the upcoming year or in the 8th year = Equipment cost - Accumulated Depreciation = $49,200 - $42,632.60 = $6,567.40

Annual depreciation expense for the upcoming year or for the 8th year = Beginning book value of the equipment - Residual value = $6,567.40 - $4,000 = $2,567

Therefore, the correct option b. $2,567.

Download xlsx

7 0

3 years ago

Yellow Enterprises reported the following ($ in 000s) as of December 31, 2018. All accounts have normal balances. Deficit (debit

horsena [70]

Answer:

The shareholders equity as of 31 December, 2018 is $32,240

Explanation:

Here for calculating the shareholders equity we will first have to find the total paid in capital of the Yellow enterprises and after that we will subtract the deficit balance that is remained in the retained earnings account, by doing this we will get the total paid in capital and retained earnings. Now we just have to subtract the treasury stock from the total paid in capital and retained earnings to get the remaining balance , which would be the shareholders equity of the Yellow enterprises.

so first step would be taking out total paid in capital =

common stock

paid in capital(excess of par)

paid in capital treasury stock

= 2700 + 31,500 + 1300

Total paid in capital = $35,500

Next step is to subtract deficit balance in retained earnings from this to get the total paid in capital and retained earnings =

total paid in capital - deficit balance in retained earnings

Total paid in capital and retained earnings = $35,500 - $3000

= $32,500

Now the last step for taking out shareholders equity we will subtract the treasury stock from the total paid in capital and retained earnings,

Shareholders equity = total paid in capital and retained earnings

treasury stock at cost

= $32,500 - $260

= $32,240

3 0

3 years ago

Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annua

scZoUnD [109]

Answer:

Bond Price= 816.29

Explanation:

Giving the following information:

YTM= 0.075

Coupon= 0.058*1,000= 58

Years to maturity= 23 years

Face value= 1,000

To calculate the price of the bond, we need to use the following formula:

Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price= 58*{[1 - (1.075^-23)] / 0.075} + [1,000/(1.075^23)]

Bond Price= 626.79 + 189.5

Bond Price= 816.29

4 0

2 years ago

The Phillips family has a joint gross monthly income of $11,300. The $499 lease payment for their car expires in four months. A

Vladimir79 [104]

Answer:

24%

Explanation:

Calculation to determine their housing ratio

Using this formula

Housing ratio= Housing expenses / Gross monthly income

Let plug in the formula

Housing ratio= $2,700/ $11,300

Housing ratio= 24%

Therefore their housing ratio is 24%

8 0

2 years ago