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Aleks [24]
3 years ago
14

Suppose that there is a flat 20% income tax rate, but otherwise the US tax law is the same as that in place. You make $40,000 pe

r year. If your employer pays for your $4,000 per year insurance policy and deducts the expense from your salary, your after-tax, after-insurance take-home pay is ________. If instead you pay for your $4,000 per year policy directly, your after-tax, after-insurance take-home pay is _______.
Business
1 answer:
levacccp [35]3 years ago
7 0

Answer:

<h2>The answers would be <u>$28,000 </u> and <u>$32,000</u> respectively.</h2>

Explanation:

  • Considering that the tax rate is 20% or 0.2 and the annual income of $40,000,the after tax annual income would be=40,000-(0.2\times40,000)=40,000-8000=$32,000
  • Now,the company deducts $4000 from the after tax annual income as insurance expense.Therefore,after-tax and after-insurance annual take home income=(32,000-4000)=$28,000
  • If we consider that the insurance expense of $4000 is paid personally by the employee,then the after-tax and after-insurance annual income would be only $32,000 as the insurance expense is paid separately and not directly deducted from annual after tax income.

       

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You have the following information on Olivia's Bridle Shop: total liabilities and equity = $65 million, current liabilities = $1
Pepsi [2]

Answer:

Total Fixed Assets = 20 million

Explanation:

Total liabilities and equity = $65 million

Current liabilities = $10 million

Inventory = $15 million

Quick ratio = 3 times.

As we know

Total liabilities and equity = Total Assets

65 Million = Total Fixed Assets + Total Current Assets

65 Million = Total Fixed Assets + 45 million

Total Fixed Assets = 65 million - 45 million

Total Fixed Assets = 20 million

Quick Ratio = ( Total Current Assets - Inventory ) / Total Current Liabilities

3 = ( Total Current Assets - 15 million ) / $10 Million

3 x $10 Million = Total Current Assets - 15 million

30 million = Total Current Assets - 15 million

30 million + 15 million = Total Current Assets

Total Current Assets = 45 Million

8 0
2 years ago
If a bookstore manager prices a book higher than the equilibrium price, then _____. A. the market price of the book will become
oksano4ka [1.4K]

D. There will be an excess supply of these books.

4 0
3 years ago
Read 2 more answers
Fully explain the differences between the following, using examples: a. Trade-offs and Opportunity Cost b. Normative and Positiv
Natali [406]

Answer: See explanation

Explanation:

a. . Trade-offs and Opportunity Cost.

A trade-off occurs when an increase in a particular thing brings about a reduction in another thing. It involves reducing a particular resource in order to increase another resource.

Opportunity cost is the loss on a potential gain when one chooses something else.

b. Normative and Positive Economics

Normative economics is when the focus of a particular economy is about fairness and what should be right. It is based on the judgement of individuals or their opinions.

Positive statement is a statement that's backed by facts. It is a statement that's said to be true.

c. Consumer Goods and Capital Goods

Consumer goods are the goods that are consumed by individuals in order to satisfy their current wants.

Capital goods are the goods that are used to produce other goods. They are not wanted for immediate consumption but rather used for production process.

d. Resource Markets and Product Markets

A resource market is referred to as a market where a particular business can buy the resources that it need for its production process.

A product market is the market where goods are traded. In such market, one can buy goods like cars, fans, etc

e. Free Market, Mixed and Centrally-Planned

Free market is a market whereby the individuals and the firms are the one controlling the resources in such market. Prices are determined in such market based on the interaction that occurs between the demand and supply. There's minimal intervention from the government in such market.

Command economy can also be called a planned economy and it is the economy whereby the allocation off goods and the services for that economy is down by the government.

Mixed economy is an economy whereby all the economic agents like the individual, the firms and government all play a role in the production and also the distribution of goods and services.

8 0
2 years ago
You just sold a futures contract on €. Each contract is for €125,000 and the price you sold for the € is $1.20 for each €. What
Yuliya22 [10]

Answer:

The profit is $12,500

Explanation:

The profit on the contract can be computed using the formula below:

profit/loss on the contract=(forward price-spot rate)*volume of currency sold

forward price is 1 euro to $1.20

spot price     1 euro to  $1.10

volume of currency sold is Euros 125,000

profit/loss on the contract=($1.20-$1.10)*125,000

                                             =$12,500

Invariably the trader sold each US dollar $0.10 more than the spot rate ($1.20-$1.10),when that is multiplied the volume of Euros sold,it gives $12,500 in profit.

This implies that the buyer could have bought the currency cheaper on contract date

3 0
2 years ago
Honda motor co. prices its whole line (from the $15,000 honda fit economy sedan to the $40,000 pilot suv) so that it offers high
enot [183]

Value Pricing policy is honda using.

This is an example of " Value Pricing" since value pricing is based on the "Value" that the product creates in the minds of the customer.

Explanation of why others are not selected.

1. CUmulative quantity discount is offered for customers who purchase several items at once which is not the case

2. Bundle pricing is offred for the customer who purchases all the goods at once which is not the case.

3. Introductory pricing involves pricing low at the time of introducing a new model to gain market penetration which is also not the case

Value pricing is customer-oriented pricing. H. Companies set prices based on how much customers believe in the value of their products. Value-based pricing differs from "cost plus" pricing, which includes production costs in the price calculation.

Learn more about Value Pricing here: brainly.com/question/7459025

#SPJ4

3 0
1 year ago
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