Answer:
The double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Explanation:
Calculatation of the after-tax return on both bonds
1)The double-exempt bond does not pay state or federal income taxes.
After-tax return =
Before-tax return = 4.9%
2)The tax-exempt bond is the state income taxes, but not federal in which the states can decide whether to tax their bonds or not.
Interest Income (100,000 * 5%) 5,000
Less: State taxes at 10% (5,000* 10%) (500)
Tax benefit from deduction of state taxes on federal return (500 * 35%) 175
After-tax Income 4,675
After-tax return = 4,675/100,000 = 4.675%
Therefore the double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Hence the state income tax will be deductible on Juan’s federal tax return and Juan’s federal taxable income will be lower or lesser by $500 which will produces tax savings at his federal marginal tax rate of $500 * 35% = $175.
Answer:
b. Dec. 31
Income Summary 925
Fees Earned 750
Rent Revenue 175
Explanation:
At the end of each accounting period, the elements of the income statements which are the revenues earned and the expenses incurred are usually closed to the income summary account.
The revenue earned which is normally a credit balance is closed by debiting the account and crediting the income summary. The expenses are closed by crediting the account and debiting the income summary.
Hence if Fees Earned, $750, and Rent Revenue, $175,
Total revenue = $750 + $175
= $925
Answer:
A remote company or Telecommuting company
Explanation:
Telecommuting (also known as working from home, or e-commuting) is a work arrangement in which the employee works outside the office, often working from home or a location close to home
True , True , True , True , True
Answer:
The correct answer is letter "D": intentional infliction of emotional distress.
Explanation:
Intentional infliction of emotional distress or IIED is a common law applied when an individual causes emotional distress to another person intentionally by behaving inappropriately. Intentional infliction of emotional distress is usually accompanied by physical injuries.
