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Veronika [31]
3 years ago
11

3. This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $200,000. Last year, their tota

l tax liability was $170,000. They estimate that their tax withholding from their employers will be $175,000. Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty? If so, how much?
Business
2 answers:
choli [55]3 years ago
7 0

Answer:

When a taxpayer has an underpayment of estimated tax or fall behind on his/her tax prepayment, then he/she is required to pay a penalty on Form 2210. This penalty is called underpayment penalty.

According to the tax laws, Mr. P and Ms. S can avoid an underpayment penalty if their withholding's and estimated tax payments equal or exceed one of the following two safe harbors:

  • 90 percent of current tax liability ($200,000 x 90% = $180,000)
  • 110 percent of previous year tax liability (110% x $170,000 = $187,000)

From the above calculation, it is clear that Mr. P and Ms. S's withholding's ($175,000) do not equal or exceed the amount of two safe harbors. So, they need to increase their withholding's or make estimated payments to avoid underpayment penalty.

If Mr. P and Ms. S increase their withholding's by $5,000 or make estimated payments of $1,250

per quarter ($5000/4), they can avoid the underpayment penalty.

Mr. Paula and Simon average gross income is greater than $150,000, so 110% is taken.

Reika [66]3 years ago
7 0

Answer:

yes they are required to increase their withholding tax by $5000

Explanation:

Paula and Simon will have to increase their withholding or make estimated tax payments to avoid underpayment penalty if the fall inside these two categories

current tax withheld for current year ≤ 90% of the current tax liability or

current tax withheld ≤ 110% of the previous year tax liability

current tax liability = $200000

last year tax liability = $170000

tax withheld = $175000

90% of $200000 = $180000:  Is  greater than tax withheld ( $175000 )

110% of $170000 = $187000 :   Is greater than tax withheld ( $175000 )

To avoid underpayment penalty Paula and Simon should increase their withholding by at least $5000 or make estimated quarterly payments of $1250

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rjkz [21]
Initial cost = $197,000
Total net accounting income over three years = $18,200+$21,800+$22,900 = $62,900

Average annual accounting net income = $62,900/3 = $20,966.67

Accounting rate of return = Average net annual income / Initial cost = 20,966.67/197,000 = 0.106 = 10.6%

Since Accounting net income is  lower than the required discount rate, the project is not viable.
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3 years ago
To help differentiate a company's brand from competitors, an improved version is created, or new features are added to the origi
Olin [163]

Answer:

The correct answer is Growth Stage.

Explanation:

In the growth phase, the product is positioned in the defined segment, and begins to be accepted by consumers. This causes sales and therefore profits to increase.

Typically, the increase in profits occurs because manufacturing costs are reduced either by economies of scale or by gaining manufacturing experience.

Despite this, competition in this second stage of a product life cycle is usually not very intense. It is likely that new competitors have appeared, but these new players will try to differentiate their product and begin to build their brand positioning.

The key at this stage is to reinforce the positioning and make modifications to adapt the product to the growing demand.

5 0
3 years ago
The nielsen company provides ratings for the tv industry. ratings are calculated from what sources? (multiple correct answers -
alexandr1967 [171]

The Nielsen company provides ratings for the TV industry. Ratings are calculated from following sources:

  • Streaming within seven days of the broadcast date.
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<h3>What is DVR?</h3>
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  • DVR systems process data at the recorder.
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Learn more about DVR here:

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3 0
2 years ago
Prine Company purchased equipment on January ​1, 2018​, for $ 25 comma 000. Suppose Prine Company sold the equipment for $ 3 com
Marat540 [252]

Answer:

a. The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale of the equipment:

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment  $6,000

Credit Equipment $25,000

Explanation:

To recognize gain or loss on the sale of the equipment:

First, the company calculates the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges.

Then, subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain and if the remainder is negative, it is a loss

On December ​31, 2019​, the carrying amount of the asset = $25,000 - $16,000 = $9,000

Sale price - Carrying amount of the asset = $3,000 - $9,000 = -$6,000

=> The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale should be made:  

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment  $6,000

Credit Equipment $25,000

4 0
3 years ago
4) People with few marketable skills are likely to earn much less than people with
antoniya [11.8K]

Answer:

False

Explanation:

Never said what the less experienced persons job was it could be a pilot and get Tons of money there for it would be false

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