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vovangra [49]
3 years ago
5

George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,640. He has just decided to join the company’s

Simple Retirement Account (IRA form) and has a few questions. Answer the questions for Clausen. (use 2015 tax information)
a.What is the maximum that he can contribute into this retirement fund? b.What would be the company’s contribution?
c.What would be his weekly take-home pay with the retirement contribution deducted(married, 2 allowances,wage-bracket method,and a 2.3%state income tax on total wages)?
d.What would be his weekly take-home pay without the retirement contribution deduction?
Business
1 answer:
Slav-nsk [51]3 years ago
3 0

Answer: a) Maximum contribution - $11,500

b). The contribution by the $1,279.20

C). Take home pay with the retirement contribution deduction = $487.26

d). Take home pay without the retirement contribution deduction = $675.41

Explanation: George being a contributor to the retirement savings account is entitled to some allowances.

The maximum contribution he can make is $11,500 while the complany contributes 3% of his salary. That is 3% × $42,640 = $1,279.20

Having a weekly pay of $820 ($42,640/52 weeks) and being married his take home will be; Weekly Retirement contribution ($11,500 ÷ 52 weeks) = (221.15)

FIT ($820.00 – $221.15 = $598.85 taxable) (30.00)

State income tax ($820.00 × 0.023) =$18.86

Therefore take home =$ 487.26 *Married, 2 allowances.

Finally, George’s take-home pay without the retirement contribution deducted:

Weekly pay =$820.00

FICA—OASDI =($50.84)

FICA—HI = (11.89)

FIT (on $820.00) =(63.00)

State income tax ($820.00 × 0.023) = (18.86)

Therefore, Take-home pay =$675.41

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Tinker Company reported sales revenue of $500,000 and total expenses of $450,000 (including depreciation) for the year ended Dec
uranmaximum [27]

Answer:

Net Cash inflow from operating activities $67,000

Explanation:

The computation of the net cash flow from operating activities is shown below:

Net Income ($500,000 - $450,000) $50,000

Add: Depreciation $10,000

Add: Decrease in account receivable $5,000

Less: Increase in inventory ($4,000)

Add: Increase in account payable $6,000

Net Cash inflow from operating activities $67,000

4 0
3 years ago
Sam wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacatio
KATRIN_1 [288]

Answer: Unit of account; Store of value; Medium of exchange.

Explanation:

Sam can easily know that the price of the computer system is more than the price of the vacation. This is a Unit of Account.

Unit of account is measuring of the value of a product against another in terms of a specific currency.

Sam has $1,537 in his checking account. This is a Store of value.

Store of value means an asset or money can be saved and retrieved at a later time, for future use.

Sam writes a check for $1,299 is a medium of exchange.

Medium of exchange is used to facilitate trade between parties. He exchanged money for the computer.

5 0
3 years ago
g A review of Parson Corporation's accounting records found that at a volume of 146,000 units, the variable and fixed cost per u
Ganezh [65]

Answer:

The total cost is $1,796,600

Explanation:

Fixed costs are costs that do not change with the change in the volume of good or service sols, but under certain circumstances, when the fixed cost is a direct cost, it can vary on a per unit basis.

Variable costs are costs that change with the change of the volume of goods or service.

Total number of units = 138,200

variable cost per unit = $8

Total variable cost = 8 × 138,200 = 1,105,600

Fixed cost per unit = $5

Total fixed cost = 5 × 138,200 = 691,000

Total cost = 1,105,600 + 691,000 = $1,796,600

4 0
3 years ago
Suppose that the United States fixes the dollar-pound exchange rate. In the process of maintaining the fixed exchange rate, if t
maks197457 [2]

Answer:

the fixed dollar-pound exchange rate is consistently below the equilibrium exchange rate that would be produced by a private foreign exchange market.

Explanation:

Fixing an exchange rate means that the government is trying to intervene in valuation of its currency. It is fixing it's currencie's rate to another and using reserves to handle fluctuations in market price.

When the fixed rate is below equillibrum there is surplus of the countrie's currency at the fixed rate. The government will buy this surplus (if not the value will fall) by selling their foreign currency reserves. This is done to maintain the fixed exchange rate.

Reduced reserves of pounds noticed by the Central bank is as a result of fixed price below equilibrium.

5 0
3 years ago
A company growing at an annual rate of 35 percent will double in size in just two years. A company growing at an 18 percent rate
Pavel [41]

Answer:

Yes.

I agree with the statement that "Persistent long-term growth is most achievable in moderate rates."

Explanation:

For instance, Company B may not be motivated to continue on its growth trajectory because it has doubled in size in a few years.  The reason for this demotivation is that to achieve further growth may not become a motivator and it may not be repeatable, with management relaxing its growth efforts.  Companies that achieve persistent long-term growth usually grow at moderate rates.

7 0
2 years ago
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