How will you use this knowledge in your future career?

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received

aleksley [76]

Answer:

A. $11,970

B. $11,890

C. January

Explanation:

a. Calculation for the after-tax cost if Isabel pays the $19,000 bill in December

After-tax cost=$19,000 - ($19,000 x 37%)

After-tax cost= $19,000 - $7,030

After-tax cost= $11,970

Therefore the after-tax cost if Isabel pays the $19,000 bill in December will be $11,970

b. Calculation for the after-tax cost if Isabel pays the $19,000 bill in January

First step is to calculate the cost before taxes

Cost before taxes = $19,000 - ($19,000 x 8%/12) Cost before taxes= $19,000 - $127

Cost before taxes= $18,873

Now let calculate the After-tax cost

After-tax cost = $18,873 - ($18,873 x 37%)

After-tax cost= $18,873 - $6,983

After-tax cost = $11,890

Therefore the after-tax cost if Isabel pays the $19,000 bill in January will be $11,890

c. Based on the above calculation for both a and b, Isabel should pay the amount of $19,000 bill in January reason that it has the lowest cost of debt of the amount of $11,890 compare to December which has the cost of debt of the amount of $11,970.

5 0

3 years ago

John Walker, the Chief Executive Officer of Consolidated Industries, had a tough decision to make. He had to decide which of fou

Afina-wow [57]

Answer:

A) Diffusion of responsibility; escalation of commitment.

Explanation:

Diffusion of responsibility relates to the concept of psychology in which the individual tends to create the responsibility of some different person, because the group size is to large and then the individual thinks not to take the responsibility.

Escalation of commitments relates to the fact that an individual continues with all the previous decisions and do not alter his actions, in consideration to the current circumstances.

In the given instance, John Walker the CEO never met any of the employees of third-world nation, and therefore, he continues his decision, that this plant shall be closed as he once again do not study all the plants, but believes illogically that the close of this plant will be beneficial to company.

8 0

3 years ago

New Jersey raises its minimum wage while neighboring Pennsylvania does not. Economists compared the labor market in both states

ollegr [7]

Answer:

Natural experiment

Explanation:

Natural experiment is the study of empirical, which comprise of the individuals who are exposed to the control as well as the conditions of the experimental , which are determined or evaluated by the nature or through other kinds of factors that are outside the person control.

The procedure of governing the exposures resemble the random experiment. This experiment are not controllable and are the observational studies. So, the event is naturally occurring, then it is an example of the natural experiment.

6 0

4 years ago

Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $45 mill

Nookie1986 [14]

Answer:

The correct option is B

Explanation:

The return on assets would be:

Return on assets (ROA)= Assets × Return

= $45,000,000 × 12%

= $5,400,000

Return per customer = ROA / Number of golfers

= $5,400,000 / 400,000

= $13.50

Fixed Cost per Customer = Fixed Cost / Number of golfers

= $20,000,000 / 400,000

= $50

Cost to be charged per customer = Profit + Fixed Cost + Variable Cost

= $13.50 + $50 + $15

= $78.50

8 0

3 years ago

In porter's generic competitive strategies, which strategy combines a focus on a total market scope and a competitive cost advan

Vanyuwa [196]

In porter's generic competitive strategies, <u>focus strategy </u>and <u>overall cost</u> <u>leadership </u>strategy combines a focus on a total market scope and a competitive cost advantage respectively.

<h3>What is focus strategy?</h3>

A focus strategy is a competitive tactic used to target marketing and sales at a certain market niche. Utilizing underserved or untapped markets is the goal of this technique.

While many rivals want to reach as many clients as possible with their sales, a focus approach chooses one or more certain categories. It gains an advantage by providing that sector with either high quality or low cost. These actions may improve client loyalty.

There are primarily two categories of focus strategies. One aspires to outperform the competition by cost leaders, while the other wants to succeed by differentiation itself.

Learn more about Focus strategy

brainly.com/question/15173066

#SPJ4

5 0

2 years ago