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shtirl [24]
3 years ago
10

Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $11,200 of federal in

come taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $23,000 in itemized deductions. (Use the tax rate schedules.)Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What is Jeremy’s tax refund or tax due including the tax on the capital gain?This is what I have so far.
Business
1 answer:
iragen [17]3 years ago
7 0

Answer:

Tax Due by Jeremy is $218

Explanation:

Step 1: Calculate Jeremy's total Income

$100,000 (Salary) + $6,000 (Interest Income) + $4,000 (long term capital gain)=  $110,000

Jeremy's exclusion at this point is 0.

Therefore, Jeremy's Gross income = $110,000, This is also Jeremy's Adjusted Gross Income (AGI).

Step 2: Calculate Taxable Income after deductions.

AGI= $110,000

Deductions from AGI= $23,000 (The greater of standard or itemized deduction).

Qualified Business Income Deductions (QBI)= $0 (Jeremy did not declare any personal business).

Taxable Income= AGI-Deductions- QBI Deductions

= $110,000-$23,000-0

= $87,000

Step 3: Calculate Jeremy's Tax Liability as follows:

Capital Gain is included as part of Gross Income, therefore finding the tax liability will necesitate that the capital gain be deducted and only the taxable percentage be added back.

Jeremy's tax liability = (87,000-4,000) + (4,000 x 0.15)

= ($83,000 x 15.4%) + 600

=$12,818 + 600

=$13,418

Jeremy's total tax Liability= $13,418 - $0 (non refundable tax credit) + 0 (other taxes)

Jeremy's total tax liability = $13,418

The total tax payment made by Jeremy

=(2,000 + 11,200)= $13,200

Therefore the tax due by Jeremy is Total Tax Liability - Tax Payment mande

= $13,418 - $13,200

= $218

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Answer: A. He will quite certainly gain approval since the project has a positive net present value.

Explanation:

The options are:

A. He will quite certainly gain approval since the project has a positive net present value.

B. Approval is probable but not likely as he failed to account for the time value of money.

C. He will not gain approval as he failed to consider whether the project is leading edge or not.

D. Approval is probable but not likely as the project has been constructed on estimates instead of facts.

Capital budgeting is used to know whether the long term investment for a particular organization's is actually worth investing in or not by the company.

Based on the scenario in the question, since the present value of the estimated future cash flows is greater than the cost of the project, Ashton will quite certainly gain approval since the project has a positive net present value.

3 0
3 years ago
According to the Huff Gravity Model, the two factors which attract consumers to a store location are: travel time for customer t
azamat

Answer:

The correct answer would be option B, The attractiveness of the store's location and the time it takes to travel to the store.

Explanation:

According to the Huff Gravity Model, The two factors which attract customers to a store location are the attractiveness of that store's location and the time it takes to travel to the store.

This means that according to the Huff theory, people will likely to purchase from a store which is present at a more attractive location and also the time taken to reach at that specific store is less. For example, I myself prefer going to Lulu Hypermarket over Panda Hypermarket because of the difference in the location of both the stores and also Lulu Hypermarket is more near to me than Panda Hypermarket. The location of Lulu is more attractive.  

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2 years ago
Samantha put $18,500 into a savings account. after one month, the savings account grew to $18,962.50. after the second month, it
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Answer: $24,747.92  

Based on the given amounts of increased in savings for the first 3 months, we have the following assumptions:

1) That the savings increase by 2.44% monthly

$18,962.50 -18,500=462.50, 462.50/18962*100=2.44%

$19,436.56--$18,962.50=$474.06, 474.06/19,436.56*100=2.44%

$19,922.48-$19,436.56=485.92, 485.92/19,922.48*100=2.44%

2) That the monthly interest for the first 3 months had an incremental of $0.30 monthly

462.50,474.06 and 485.92 has an incremental of 11.56 and 11.86 (with a difference of .30)

Continuing on with the increments gives savings of $24,747.92 in the 12th month.

4 0
3 years ago
Read 2 more answers
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Answer:

$1,774.2

Explanation:

Compute the accumulated amount in the account on the date of last deposit'

Formula used to find out the future value ordinary annuity is:

Future value factor of ordinary annuity (FVF-0A =_{n,i} ) = \frac{1-(1+i^)^ {n} }{i}

1- oily Future value of ordinary annuity (FV-OA) = R (FVF-0A_{n,i} )

Where:

R = annual return (ordinary annuity)

(FVF-0A_{n,i} ) = future value of an ordinary annuity of I for n periods at i interest

Substituting the values:

Future value of ordinary annuity (FV-OA) = R (FVF-0A_{n,i} )

                                                             = $50 (FVF-OA 12_{2.5X 12\frac{12}{12}  }  )

                                                              =$50 X 34.7849

51 X 34.7849\\=1,774

                                                    

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It should be noted that the unearned warranty revenue is a characteristic of both the sales approach for service-type warranties and the expense approach for assurance-type warranties.

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