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Alik [6]
2 years ago
12

Assume a firm increases its revenue by $100 while increasing its cost of goods sold by $85. How much additional tax will the fir

m owe if its marginal tax rate is 21%?
Business
2 answers:
natka813 [3]2 years ago
8 0

Answer:

Additional tax the firm will owe: $3.15

Explanation:

Marginal tax rate is calculated by following formula:

Marginal tax rate = Change in taxes paid/Change in income

Change in taxes paid = Marginal tax rate x Change in income

The firm increases its revenue by $100 while increasing its cost of goods sold by $85.

Change in income = $100 - $85 = $15

Additional tax the firm will owe = $15 x 21% = $3.15

Kitty [74]2 years ago
8 0

Answer:

$3.15

Explanation:

Marginal income is the difference between the marginal revenue and the marginal cost.

Marginal revenue = $100

Marginal cost = $85

Marginal taxable income = $100 - $85

=$15

If the marginal tax rate is 21%, additional tax owed

= 21% × $15

=$3.15

The marginal tax owed as a result of the increase in revenue and cost is $3.15.

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3 years ago
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7. Alice has $15,000 for investment purposes and suppose Alice’s MARR is 18% compounded monthly. Her bank has offered the follow
stepladder [879]

Answer:

a) Annual Worth of net gain is  $6793.0184

b) Annual Worth of net gain is  $6395.557

c) Annual Worth of net gain is  $6922.65

Recommendation: Option C is the best option for Alice

Explanation:

a) Alice will get $200 per month for 5 years which means for 60 months at the rate of 18% compounded monthly.

So FV of that cash flow

= FV(18%/12,60,-200)

= 19242.9303

A lump sum amount of $17000 at the end of 5th year

Total Worth = 19242.9303 + 17000

                    = $36242.9303

Annual worth = $36242.9303 / 3.1271

                      = $11589.94

Net Gain = $36242 - $15000

               = $21242.9303

Annual Worth of net gain = $21242.9303 / 3.1271

                                          = $6793.0184

b) Racehorse share will be worth $35000 on 5 years.

Annual Worth = $35000 / 3.1271

                       = $11192.48

Net Gain = $35000 - $15000

               = $20000

Annual Worth of net gain = $20000 / 3.1271

                                          = $6395.557

c) Saving account will generate funds after 5 years

= FV(18%/12,60,,-15000)

= $36648.30

Net Gain = $36648.30 - $15000

               = $21648.30

Annual Worth = $36348.30 / 3.1271

                       = $11719.58

Annual Worth of net gain = $21648.30 / 3.1271

                                          = $6922.65

Therefore, Option c is best for Alice.

8 0
3 years ago
which is an implied power of the federal government? raising taxesregulating tradedrafting soldiersdeclaring war
mars1129 [50]

Drafting soldiers is an implied power of the federal government.

According to Article I, Congress has the authority to make provisions for the general welfare and common defense of the United States. However, the establishment of a forced draft for enlistment in the military is an implicit power that has been exercised at various points in American history, from the Civil War until 1973.

Another well-known example of implied powers is the ability to form an army through a draft. For instance, the Constitution does not expressly permit the use of a draft prior to America's participation in World War II.

The ability to declare war, provide for and maintain a Navy, create and fund Armies, and equip, direct, and summon a militia all fall under the purview of Congress.

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7 0
2 years ago
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old nanny $170 per week fo
aksik [14]

Answer:

Nanny's Portion of Social Security is $442.68  

Ann's Portion of Social Security Tax is $442.68

Nanny's Portion of Medicare Tax is $103.53  

Ann's Portion of Medicare Tax is $103.53

Explanation:

As explained by the Internal Revenue Service (IRS) under "Topic No. 751 Social Security and Medicare Withholding Rates", the social security tax rate are 6.2 percent for the employer and 6.2 percent for the employee, while the Medicare rate for employee is 1.45 percent and it is also 1.45 percent for the employer. In addition, the wage base limit for 2020 social security tax is $137,700.

Base on the above, we proceed as follows:

Step 2: Calculation total salary of nanny

Total salary of nanny = weekly rate × number of weeks worked

                                   = $170 × 42

                                   = $7,140

Step 2: Calculation of social security tax

Since the nanny's salary is below the wage base limit of $137,700, the tax rates are applied to the actual salary of $7,140 as follows:

Nanny's Portion of Social Security Tax = $7,140 × 6.2% = $442.68  

Ann's Portion of Social Security Tax = $7,140 × 6.2% = $442.68

Step 3: Calculation of Medicare tax

Since there is no wage base limit for Medicare tax, the tax rates are applied to the actual salary of $7,140 as follows:

Nanny's Portion of Medicare Tax = $7,140 × 1.45% = $103.53  

Ann's Portion of Medicare Tax = $7,140 × 1.45% = $103.53

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3 years ago
A technical analyst has been charting the price movements of ABC stock. The stock has been fluctuating in price between $63 and
bogdanovich [222]

Answer:

The trader should orders to buy ABC stock or take a long position to the stock.

Explanation:

The stock has been fluctuating for 3 months, hence, its value should be well analysed. Now if there is a breakout through the support level, usually with a good quarterly performance report, the stock is likely to go "bull". Buying and holding the stock is a rational decision.

6 0
3 years ago
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