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
Rzqust [24]
3 years ago
12

Fern Co. has net income, before taxes, of $200,000, including $20,000 interest revenue from municipal bonds and $10,000 paid for

officers' life insurance premiums where the company is the beneficiary. The tax rate for the current year is 30%. What is Fern's effective tax rate?
Business
1 answer:
exis [7]3 years ago
3 0

Answer:

Effective tax rate =28.50 %

Explanation:

given data

Net Income before taxes = $2,00,000  

Interest revenue = $20,000  

Life insurance Premium = $10,000

tax rate = 30%

to find out

Fern's effective tax rate

solution

first we get here Taxable Income that is express as

Taxable Income = Net Income before taxes + Life insurance Premium - Interest revenue   ........................1

put here value we get

Taxable Income = $2,00,000 + $10,000 - $20,000

Taxable Income = $190000

so

Income tax Liability will be

Income tax Liability = Taxable Income × Tax rate  .....................2

Income tax Liability = $190000  × 30%

so Effective tax rate will be

Effective tax rate = \frac{Income\ tax\ Liability}{Net\ Income}

Effective tax rate = \frac{57000}{200000}

Effective tax rate =28.50 %

You might be interested in
Silvana Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintain
Goshia [24]

Answer:

The dividend payout ratio is 43.33% as shown below

Explanation:

EBIT is an acronym for earnings before interest and tax, it is given as $2 million.In other words, to arrive at net income we need to deduct interest on loan and tax.

EBIT                                                 $2000000

less interest(5000000*10%)         ($500000)

Earnings before tax                       $1500000

Tax @40%                                        ($600000)

Net income                                      $900000

Since capital project requires 60% of equity(net income belongs to equity holders),hence we need to deduct 60% of capital outlay from net income to arrive at distributable earnings.

distributable earnings =$900000-(60%*$850000)

                                     =$390000

Hence dividend payout ratio=distributable earnings/net income

                                               =$390000/$900000

                                                =43.33%

8 0
3 years ago
A manager who tells a subordinate that he will not recommend her for promotion unless she supports his proposal in an upcoming s
Artemon [7]

A manager who tells a subordinate that he will not recommend her for promotion unless she supports his proposal in an upcoming sales meeting is using Coercion type of political behavior.

<h3>What is Coercion behaviour?</h3>
  • Coercion is the use of threats, especially physical threats, to induce an unwilling action from a party.
  • It entails a series of coercive behaviors that go against an individual's free will in an effort to elicit the desired response.
  • Extortion, blackmail, or even torture and sexual assault are examples of these activities.
  • Coercion occurs when someone is threatened with violence if they refuse to sign a contract.

Elements of Coercive Practices Proof

  • Damaging, endangering, or threatening to harm.
  • Both directly and indirectly.
  • Any party or that party's property.
  • Unfairly sway a party's course of action.

Learn more about coercion here:

brainly.com/question/14292154

#SPJ4

5 0
2 years ago
Matthew manages the sales team at an information technology (IT) firm. His focus is to conduct business in accordance with his f
Romashka-Z-Leto [24]

Answer: utilitarian

Explanation:

Utilitarianism: this is one of the oldest, best known and most influential moral theories.

Like other forms of moral theories, its core principles is that whether an action is morally right or wrong depends on the final outcome or effects of such actions.

To be more specific, the only effects of actions that are relevant here are the good and bad results that they produce that such action produces nothing else matters.

7 0
3 years ago
A transaction? a. must maintain internal consistency at all times b. can be partially executed if aborted c. can communicate wit
Daniel [21]

A correct option is an option (b),i.e., can be partially executed if aborted.

What is a transaction?

An agreement that has been fulfilled between a buyer and a seller to trade goods, services, or financial assets in exchange for cash is referred to as a transaction. In corporate accounting, the phrase is also frequently used.

Why is a business transaction important?

Business transactions are becoming more and more important because they provide an abstract view of the interactions that occur among organizations to achieve a commercial goal.

What is the nature of the business transaction?

A business transaction is an activity that can be quantified objectively that involves the exchange of money, products, or services for money or for the right to receive money between accounting entities that are people (natural and artificial).

Learn more about transaction: brainly.com/question/24730931

#SPJ4

5 0
1 year ago
Inventory Analysis A company reports the following: Cost of goods sold $347,480 Average inventory 86,870 Determine (a) the inven
stiks02 [169]

Answer:

a. 4

b. 91.25 Days

Explanation:

a. Inventory Turnover = Cost of goods sold/ Average Inventory

= $347,480 / 86,870

= 4

b. Number of days sales in Inventory = Inventory/ COGS*365

= 86,870 / $347,480 * 365

= 91.25 Days

5 0
3 years ago
Other questions:
  • Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25​% of the goods to the
    15·1 answer
  • If Gary always requests his superior’s advice when solving a problem or making a decision, which type of decision maker is he?
    14·1 answer
  • For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a
    15·1 answer
  • Around which latitude(s) would you expect to find rainforests, and why? ( you may enter up to 150 characters. )
    6·2 answers
  • An article on the health care industry revealed several assumptions that health care administrators have adopted during the last
    9·1 answer
  • Sweet Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction
    10·1 answer
  • Dry cleaning companies often charge more for women's blouses than men's shirts. They claim that this is because women's blouses
    5·1 answer
  • You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equ
    5·1 answer
  • Which one is the correct answer ?
    14·1 answer
  • You are the head of the central bank and you want to maintain a 2 percent long-run inflation rate. Suppose that velocity is cons
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!