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
All of the following will occur if the government places an effective price ceiling on candy bars except:
miskamm [114]

Answer:

c. there will be a surplus of candy bars. 

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

If a price ceiling is effective, the price ceiling is set below equilibrium price.

If price is set below equilibrium price, the quantity supplied would fall and this would lead to an excess of demand over supply. Also, scarcity of the product for which a price ceiling has been set would occur.

A black market would occur. There would be a drop in the quality of product as sellers would be trying to maximise profits.

I hope my answer helps you

6 0
3 years ago
The price of mangoes is currently $5.00 per pound. At this price, producers are supplying 4,000 pounds of mangoes. Point C on th
nlexa [21]

Answer:

yes

Explanation:

5 0
3 years ago
Read 2 more answers
What typically happens to non farm payrolls the pmi indicator, and housing starts at the onset of a recession in the united stat
Ivanshal [37]
Non-farm payrolls refer to jobs in the manufacturing sector and other industries that are not farm. As part of its Employment situation report, the U.S Bureau of Labor Statistics releases closed-followed monthly data on nonfarm payrolls, the statistics from the nonfarm payroll also shows which sectors are generating the most employment additions. It measures the change in the number of people employed during the previous month except to the farming industry. At the onset recession, the nonfarm payrolls tend to reduce. The PMI or the Purchasing Managers Index is a measure of the economic health of the manufacturing sector. As stated by an analyst at TD Securities, the point of view for manufacturing is demoralized, and the sector is in recession.
4 0
3 years ago
Read 2 more answers
When does the company go in loss​
Sedbober [7]
When they spend more than they are able to pay back! Hope this helped! BRANLIEST plz!
4 0
2 years ago
Which is the type of stock that is commonly traded in stock exchanges? Hint: this is the form of company ownership that does not
Rashid [163]

Answer:

Preferred shares

Explanation:

In simple words, Preferred shares (sometimes known as "preferred") are indeed a type of hybrid security that has both equities and guaranteed income features. A preferred share, like an equity instrument, indicates an ownership stake, has no expiration period and is recorded on the capital side of a corporation 's balance sheet.

5 0
2 years ago
Other questions:
  • Which of the following does not influence the consumer when he or she is deciding whether or not to buy a product?
    6·1 answer
  • For each of the following transactions for New Idea Corporation, give the accounting equation effects of the adjustments require
    13·1 answer
  • The idea of efficiency often arises when measuring a society's well-being. There are two kinds of efficiency: productive efficie
    12·1 answer
  • A customer has a broadly diversified stock portfolio with a current market value of $2,500,000. The customer wishes to hedge the
    14·1 answer
  • Which of the following statements about price wars is true? Multiple Choice a. Firms that have to deal with the possibility of p
    6·1 answer
  • Telemarketers receive $15 commission on all new customers they sign up for cell phone service through Movill Networks. Each tele
    7·1 answer
  • A company's strategy has a chance of succeeding only when it is predicated on:
    13·1 answer
  • the units digit of a two digit number is 10. If the digits are reversed, the new number is 9 less than the original number. find
    11·1 answer
  • Define a two-bin system. Multiple choice question. It specifies the amount of risk of incurring a stockout that a firm is willin
    5·1 answer
  • What are the benefits and advantages of members when joining organizations like UNWTO, PATA, or ASIANTA?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!