Answer:
Casey would prefer option 1; that he pays the premiums ($8,000). Even if Casey cannot deduct his insurance premiums as medical expenses, his income will only be reduced by $8,000. If he decided to take option 2, his income would be reduced by $8,800 (= $10,000 - 12%), so he is saving $800 by taking option 1.
On the other hand, Jean would prefer option 2; that her salary is reduced by $10,000 and her employer pays the premiums. By choosing option 2, Jean is going to lose $6,500 (= $10,000 - 35%). If she chose option 1, her income would be reduced by $8,000, so she is saving $1,500 by choosing option 2.
Solution:
The unit-of-production approach allocates depreciation on the basis of the usage of the commodity.
The first step is to measure depreciation per unit by calculating the sum of less residual value by usable life in units.
For this scenario, we measure ($300,000-$50,000)/40,000 hours
= $6.25 per computer hour as the deprecation cost per device.
That number is compounded by the real use for the year.
In this scenario, 6,000 hours * $6.25 depreciation cost
= $37,500 depreciation bill.
Answer:
$ 615,000
Explanation:
Data provided :
Capital budget = $ 650,000
Debt ratio = 40%
Equity ratio = 60%
thus,
The capital funded by the equity = 60% of the capital = 0.6 × $ 650,000
= $ 390,000
Dividend to be paid = $ 225,000
Therefore,
the net income must be earned = $ 390,000 + $ 225,000
or
The net income must be earned = $ 615,000
<span>b. $52,514.51. The $2,173.93 in student loan interest deductions, $2,824 to his favorite charities, and $3,117.56 in home mortgage interest are all tax deductible. However, only $7,300 is exempted from his taxes from the $11,400 they claimed for. Subtracting all this from $67,930, we get $52,514.51.</span>
