1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MariettaO [177]
3 years ago
8

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received

a $43,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $43,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 8 percent on her investments.
a. What is the after-tax cost if Isabel pays the $43,000 bill in December?
Business
2 answers:
VMariaS [17]3 years ago
6 0

Answer:

Tax rate (T) = 37% = 0.37

After-tax cost = Cost (1 - T)

After-tax cost = $43,000 (1 - 0.37)

After-tax cost = $27,090

Explanation:

After-tax cost equals before tax cost multiplied by 1 - tax rate. Before-tax cost is $43,000 and when this cost is subject to tax, we will obtain the after-tax cost.

Bumek [7]3 years ago
3 0

Answer:

the after-tax cost of debt is: 27,090

Explanation:

assuming the entire among of the consulting services is tax deductible

we can determinate the after-tax cost as:

expense x (1 - tax rate) =

 43,000 x    (1 - 0.37)    = <em>27,090</em>

<em />

<em>the rate of return of a potential investment is not relevant for this purpose as is paying right away and not giving time to invest in a project to pay the amount next year.</em>

You might be interested in
Which will you likely have to provide on college applications?
77julia77 [94]
Personal information :)
7 0
3 years ago
When a u.s. airplane manufacturer sells its airplanes to business executives in germany without using intermediaries, it is refe
den301095 [7]
<span>When a U.S. airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries, it is referred to as? Direct exporting. Even though the airplanes were sold without using intermediaries making them a direct export there are still processes that have to be followed within the exchange. A benefit to direct exporting allows the the costs and confusions using a middle man to create, to be irrelevant as there is no middle man just the two companies/countries doing an exchange. </span>
7 0
3 years ago
Which examples demonstrate common Financial and Investment Planning workplaces and employers? Check all
jenyasd209 [6]

Answer:

The correct answers are,

  • -Carmen Works in an investment companies office analyzing the level of risk that different Investments offer
  • -Luisa works at a stock exchange buying and selling securities for customers
  • -Ladonna is self-employed and meets with customer dinner office to provide Financial advice ​

Explanation:

financial advisory is an important aspect in the business world and is important for the companies and start ups to smartly and effectively utilize their finances.

most of the time, those who are in the profession of "financial advisory" are carefully monitored by regulatory bodies such as the securities and exchange commissions and related professional body.

in this scenario, investment officers and stock brokers are shown, all fall under the category of advisers.

3 0
3 years ago
When Ronald complained to his bank about the unprofessional behavior of one teller, the branch manager added a code into his acc
OLEGan [10]

Answer:

The correct answer is C. loyalty.

Explanation:

The segmentation on basis of customer loyalty is done on following grounds

•     The most valuable market, channel, product and customer segments

•     Key decision makers and influencers

•     Critical needs and wants for each segment

•     Future needs

•     Measures of customer satisfaction and loyalty

•     Brand and competitive equity benchmarking

•     Value proposition alternatives for each segment

•     A trade-off analysis for features vs. price

8 0
3 years ago
Cash is difficult to protect because it is easy to transfer and its ownership difficult to prove. These statements are?.
Arte-miy333 [17]

The following are some causes for a bank balance to differ from a company's balance: Deposits in transit, Charges for printing checks and bank services, Accounting mistakes at the business.

<h3>What are financial statement audits mostly focused on?</h3>
  • In a financial statement audit, the auditor is able to determine with a reasonable degree of assurance whether there are no major misstatements in the financial statements.
  • Cash can easily stolen or misplaced. As a result, it's critical to put internal controls in place to protect these assets and ensure that only authorized individuals have access to them.
  • A fundamental internal control process is to deposit all cash receipts in the bank as soon as possible. Cash receipts are frequently deposited by businesses each day.
  • The following are some causes for a bank balance to differ from a company's balance: Deposits in transit, Charges for printing checks and bank services, Accounting mistakes at the business.  

To learn more about Accounting mistakes at the business refer to:

brainly.com/question/25671660

#SPJ4

4 0
1 year ago
Other questions:
  • Hillary can invest her family savings in two assets: riskless treasury bills or a risky vacation home real estate project on an
    10·1 answer
  • A person wishing to manufacture and sell a product that another holds the patent on
    9·1 answer
  • A "Buy American" provision in the 2009 stimulus bill would ________ consumer surplus and ________ producer surplus for industrie
    5·1 answer
  • A career will be most productive, comfortable, and enjoyable when it fits well into one’s lifestyle. Which is the best definitio
    11·2 answers
  • Pascarelli Corporation’s inventory at the end of Year 2 was $132,000 and its inventory at the end of Year 1 was $160,000. Cost o
    6·1 answer
  • Prime Computers is a company that sells computers and software. The company has a website that allows customers to post comments
    10·1 answer
  • 1. Why is it valuable for a worker to understand the business of the
    13·1 answer
  • Because of growth in team capability, over time the team becomes more ________ and over time can perform the same service for le
    7·1 answer
  • Record the following transactions for Lett Company. (Credit account titles are automatically indented when the amount is entered
    15·1 answer
  • Within the 4e framework for social media, the ultimate goal of a firm is to ______ the customer. multiple choice question. excit
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!