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kupik [55]
3 years ago
6

Mikey initially invested $2,400 in a company and has held this investment for 3 years. He sold the investment after 3 years for

$4,950. Assuming he is in the 39.6% tax bracket, what is his tax savings with capital gains rates?
Business
1 answer:
Tanzania [10]3 years ago
3 0

Answer:

499.80

Explanation:

There is no 39.6% tax bracket, the highest marginal tax is 37%. But we can assume that Mikey had to pay 39.6% in taxes which means that he is in the seventh tax bracket (highest). Since he is classified under the highest tax bracket, he will also pay the highest capital gains rate which is 20%.

Mikey's long term capital gain = $4,950 - $2,400 = $2,550

if he paid regular income taxes = $2,550 x 39.6% = $1,009.80

since he pays capital gains taxes = $2,550 x 20% = $510

That means he saves $1,009.80 - $510 = 499.80

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Answer:

Income will increase by $84.

Explanation:

<u>The break-even point is the number of units required to cover the fixed costs. Net income is zero.</u>

First, we need to calculate the unitary variable cost:

Unitary variable cost= 120*0.3= $36

<u>Now, the unitary contribution margin:</u>

unitary contribution margin= 120 - 36

unitary contribution margin= $84

Income will increase by $84.

8 0
2 years ago
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balandron [24]

Answer:

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Explanation:

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Answer:

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Explanation:

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“For deposit only” is what type of endorsement check?
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