The state income tax owed on the $40,000 salary should be $1,800.
- The calculation of the state income tax owed on $40,000 salary should be:
= 3% of $10,000 + 5% of $30,000
= $300 + $1,500
= $1,800
Therefore we can conclude that the state income tax owed on the $40,000 salary should be $1,800.
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Answer:
(a) 5000 (b)25000 (c)40000
Explanation:
Solution
(a)The tax on ordinary income share = 20000*25% = 5000
(b) The total distribution of cash from partnership = 30000
So,
Less: Tax on above = 5000
, and after tax cash flow = 25000
(c) Now,
The basis at beginning of year = 50000
Thus,
Add: Ordinary Income = 20000 and the adjusted basis = 70000
so,
Less: cash distribution = 30000
The End of the year basis = (70000-30000)
= 40000
Answer:
C. If a project's NPV is less than zero, then its IRR must be less than the WACC.
Answer:
Price-earnings ratio = 26.7
Explanation:
given data
annual sales = $328,000
stock outstanding = 8,000 shares
profit margin = 4.5 percent
price-sales ratio = 1.20
solution
we get here first Price per share that is
Price per share = price-sales ratio × .............1
Price per share = 1.20 ×
Price per share = $49.20
and now we get Earnings per share that is
Earnings per share = ( annual sales × profit margin ) ÷ stock outstanding .........2
put here value and we get
Earnings per share =
Earnings per share = $1.845
and
now we can get Price-earnings ratio that is
Price-earnings ratio = Price per share ÷ Earnings per share ...........3
Price-earnings ratio =
Price-earnings ratio = 26.7
14%
Margin of Safety:
[(current sales - break even)/current sales] * 100
(12900-11094)/12900] *100
(1806/12900)*100
.14*100 = 14%