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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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Alex Ltd. produces kitchen tools, and operates several divisions as profit centers. Division M produces a product that it sells
alexira [117]

Answer:

Division N's purchase costs will decrease by $90,000 per year

Explanation:

Division N's purchase cost form outside vendor = total units purchased per year x unit price = 30,000 units x $15 = $450,000

if Division N obtains the product form division M with a transfer price of $12 per unit, their costs will decrease by = total units x (vendor price - transfer price) = 30,000 units x ($15 - $12) = $90,000 per year

4 0
3 years ago
For each of these situations, determine the savings amount. Use the time value of money tables inChapter 1 (Exhibit 1–3) or in t
FromTheMoon [43]

Answer:

a. What would be the value of a savings account started with $700, earning 4 percent (compounded annually) after 10 years?

$700 * 1.480 = $1,036.00

b. Brenda Young desires to have $15,000 eight years from now for her daughter’s college fund. If she will earn 6 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation.

$15,000 * 0.627 = $9,405

c. What amount would you have if you deposited $1,800 a year for 30 years at 8 percent (compounded annually)?

$1,800 * 113.28 = $203,904

8 0
3 years ago
The terms “production-oriented leaders” and “employee-oriented leaders” are associated with which research effort to identify th
lions [1.4K]
The two terms are associated with MICHIGAN LEADERSHIP STUDIES which was geared toward identifying the communication patterns of leaders.
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6 0
3 years ago
Prior to recording adjusting entries, the Office Supplies account had a $379 debit balance. A physical count of the supplies sho
White raven [17]

Answer:

Debit Supplies expenses for $275

Office supplies for $275

Explanation:

Before the adjusting entry, the following adjustment has to be made first:

Ending balance of supplies that has not been adjusted = $379

Physical ending balance = $104

Amount of used supplies during the period = $379 - $104 = $275

This $275 will be recorded as supplies expense. Therefore, the adjusting entry will be as follows:

<u>Particulars                                      Dr ($)                Cr ($)  </u>

Supplies expenses                        275

Office supplies                                                         275

<em><u>(To record the supplies expense for the period.)              </u></em>

The above entries will then reduce enduing balance of supplies from $379 to $104.

6 0
2 years ago
Clark Company's master budget reflects budgeted sales information for the month of June, 2019, as follows: Budgeted Quantity Bud
lesya [120]

Answer:

Total sales variance    $87,340   Favorable

See report below

Explanation:

The sales budget for the month of June would like as follows:

Budgeted Sales

Product                 units        Price     Total($)

A                        40,000       $7          280,000

B                         39,000    $9            351,000

Actual sales

Product                 units        Price     Total($)

A                        39,000       $7.10         276,900

B                        49,600       $8.90         441440

Sales Budget Report for the month of June 2019

                                Budget           Actual           Variance ($)

A                        280,000                  276,900         3,100      Unfavorable

B                        351,000                   441,440            <u>90,440  </u>favorable

   Total sales variance                                          <u>  87,340   Favorable</u>

5 0
2 years ago
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