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Kay [80]
3 years ago
7

Calculate Social Security taxes, Medicare taxes, and FIT for Jordon Barrett. He earns a monthly salary of $11,300. He is single

and claims 1 deduction. Before this payroll, Barrett’s cumulative earnings were $128,070. (Social Security maximum is 6.2% on $128,400 and Medicare is 1.45%.) Calculate FIT by the percentage method. (Use Table 9.1 and Table 9.2) (Round your answers to 2 decimal
Business
1 answer:
FromTheMoon [43]3 years ago
8 0

Answer:

1) social security taxes = (accumulated earnings - social security maximum) x 6.2% = ($139,370 - $128,070) x 6.2% = <u>$700.60</u>

2) medicare taxes = monthly earnings x 1.45% = $11,300 x 1.45% = <u>$163.85</u>

3) in order to calculate federal income taxes, I used the 2019 tables and allowance:

2019 allowance = $350 per person

monthly paycheck between $7,333 - $13,710

must withhold $1,198.46 plus 24% in excess of $7,333

federal income taxes under percentage method = $11,300 - $350 (1 monthly allowance 2019) = $10,950

$1,198.46 + [($10,950 - $7,333) x 24%] = $1,198.46 + $868.08 = <u>$2,066.54</u>

For 2020, there are no more personal allowances.

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Derek just received a bonus and wishes to set aside a portion of it in order to save for a 10-year reunion cruise that his old c
kotegsom [21]

Answer:

$3,168

Explanation:

We will receive $4000 in future (after 4 years time) which means all we want to know is the amount that we Derek must deposit today.

This present value of the $4000 payment received after 4 years from today can be calculated using the following formula:

Present value = Future Value / (1 + r)^n

Here

Future Value is $4000

r is 6%

n is 4 years

So by putting values, we have:

Present value = $4000 / (1 + 6%)^4 Years

Present value = $3,168

3 0
3 years ago
Sustainable Growth Rate You have located the following information on Rock Company: debt ratio = 46.5%, capital intensity ratio
Sliva [168]

Answer:

The correct answer is 10.72% ( Approx.).

Explanation:

According to the scenario, the given data are as follows:

Debt ratio = 46.5%

Capital intensity ratio = 2.51 times

Profit margins = 21%

Dividend payout = 38%

Formula to calculate sustainable growth rate ae as follows:

Sustainable growth rate = (Earnings retention rate × Return on equity ) / ( 1 - (ROE × RR)

where, Retention rate =(1 - dividend payout rate)

= (1-0.38) = 0.62

ROE = Profit margin × Total asset turonver × Equity multipler

= Profit margin × 1/capital intensity ratio × 1/(1-debt ratio)

= .21 × (1/2.51) × 1/(1-.465)

= .21 × 0.398 × 1.869

= 0.1562

=15.62%

So, Sustainable growth rate = (0.1562*0.62) / 1 - (0.1562*0.62)

= 0.096844 / 0.903156

= 0.1072

= 10.72% (approx.)

Hence, the correct answer is 10.72% (approx.).

7 0
3 years ago
Suppose your firm just issued a 20-year, $1000 par value bond with semiannual coupons. The coupon interest rate is 9%. The bonds
sergiy2304 [10]

Answer:

<em>4.78%</em>

Explanation:

<em>From the question given, we solve the issue</em>

<em>the calculation of he bond price is:</em>

<em>Price of bond = per value * (1- flotation cost)</em>

<em>$1000 *  (1- 0.05)</em>

<em>= $950</em>

<em>For the calculation of semi-annual coupon payments, </em>

<em>Semi -annual coupon payment  = Par value * Interest/2</em>

<em> $1000 * 0.09/2 = $45</em>

<em>Calculation of semi- annual yield to maturity</em>

<em>Let recall the following</em>

<em>YTM = yield to maturity</em>

<em>C = The semi-annual coupon payment</em>

<em>FV= Face value or par value </em>

<em>PV= Price of a bond </em>

<em>n = Maturity years of the bond </em>

<em>Therefore,</em>

<em> YTM= C + FV - PV/n/ FV + PV/2</em>

<em>which is</em>

<em>$45 + $1000 - $950/40/$1000 + $950 / 2 = 4.78%</em>

4 0
3 years ago
Use the information to answer the following questions. XXX, Inc. Balance Sheet 2018 2017 2018 2017 Cash 200 450 Accounts Payable
Anna11 [10]

Answer:

$2,145

Explanation:

For the computation of Net Operating Profit After Taxes (NOPAT) first, we need to compute the tax rate which is shown below:-

Tax rate = Tax expense ÷ Earnings before tax

= 700 ÷ 2,000

= 35%

Net Operating Profit After Taxes (NOPAT) = EBIT × (1 - tax rate)

= 3,300 × (1 - 35%)

= $2,145

Therefore for computing the Net Operating Profit After Taxes (NOPAT) we simply applied the above formula.

3 0
2 years ago
Services that specialize in intermodal shipping are known as intermodal marketing companies.
Semmy [17]

Answer:

I think it's true

explanation:

none

4 0
3 years ago
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