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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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Gannon Enterprises is in the midst of a major strategic change. To lessen resistance from some of the senior managers who are op
Vera_Pavlovna [14]

Answer:

The correct answer is negotiation.

Explanation:

A definition of negotiation that appears on the internet expresses, which is the communication process that aims to influence the behavior of others and where both parties reach a WIN-WIN agreement. The reason why at the end of a negotiation both parties can believe that they have won is that neither the interests nor the values have to be opposed, and it is the responsibility of the negotiators to discover the complementary points to develop a negotiation with the win-win scheme.

On the other hand, negotiation techniques are defined as the mechanisms and models of behavior that the parties use to influence the other and achieve a satisfactory solution to a conflictive encounter. These actions are based on the potential power of the parties involved in the negotiation.

7 0
3 years ago
The quantity theory of money holds that:______.
N76 [4]

Answer and Explanation:

The quantity theory of money talks about money supply and price level, and their relationship with one another.

In any given economy, the quantity Theory of money states that money supply and price level are directly proportional. This is to say that when there is a change such as an increase in money supply, there would also be a proportional increase in price Ievel. Also when there is an increase in price level, there would also be a proportional increase in money supply.

4 0
3 years ago
Cosmo has just made his dream come true of buying the property that his restaurant occupies. His excitement is short lived, howe
forsale [732]

Answer:

Realistic aspect

Explanation:

Considering the scenario described in the question it can be concluded that Cosmo shifted his focus onto which REALISTIC aspect of goal-setting theory.

This is because following Cosmo making his dream come true of buying the property that his restaurant occupies, the idea that he could rent out the storefront next to the restaurant for added income is a REALISTIC Aspect of Goal Getting.

This implies that Cosmo is more realistic in terms of his financial abilities and willingness to work toward the goal of paying off the mortgage loan

7 0
3 years ago
A list of financial statement items for Blossom Company includes the following:
cricket20 [7]

Answer:

Total current assets            $83,580

Explanation:

The preparation of the current assets section of the balance sheet is shown below:

<u>Current Assets                  Amounts </u>

Cash                                   $22,360

Debt investments(short term) $17,360

Accounts receivables     $30,100

Supplies                             $8,170

Prepaid Insurance              $5,590

Total current assets            $83,580

5 0
2 years ago
The Fantastic Ice Cream Shoppe sold 8,800 servings of ice cream during June for Dollar 5 per serving. The shop purchases the ice
Anuta_ua [19.1K]

Answer:

The Fantastic Ice Cream Shoppe

a) Fantastic Ice Cream Shoppe

June Income Statement, using traditional format

Sales Revenue         $44,000

Cost of goods sold       5,720

Gross profit              $38,280

Expenses:

Rent expense             2,050

Depreciation exp.          220

Other operating exp. 2,800

Total expenses        $5,070

Net Income             $33,210

b) Fantastic Ice Cream Shoppe

June Income Statement, using contribution margin format

Sales Revenue                   $44,000

Direct materials      5,720

Operating expense  700

Total variable expense         6,420

Contribution margin         $37,580

Fixed expenses:

Rent expense             2,050

Depreciation exp.          220

Other operating exp.  2,100

Total expenses                  $4,370

Net income                      $33,210

Explanation:

a) Data and Calculations:

Sales of ice cream during June = 8,800 servings

Price per serving = $5

Sales revenue = $44,000 ($5 * 8,800)

Purchase cost of ice cream in large tubs = $14 * 8,800/28 = $4,400

Purchase cost of ice cream cones = $0.15 * 8,800 = $1,320

Total cost of direct materials = $5,720

Fixed costs:

Rent = $2,050 per month

Depreciation = $220

Other operating expenses:

Fixed operating expense = $2,100 ($2,800 * 75%)

Variable operating expense = $700 ($2,800 * 25%)

3 0
3 years ago
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