1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ivanshal [37]
3 years ago
13

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

a $20,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 40 percent this year and next year, and that she can earn an after-tax rate of return of 12 percent on her investments. When should she pay the $20,000 bill— this year or next?
Business
1 answer:
stepan [7]3 years ago
6 0

Answer:

Paying the $20,000 in December is the clear winner. Accelerating her payment from January to December will increase the present value of the cash outflow by a few days. Thus, there is a minor present value cost associated with accelerating her payment.

Explanation:

Option 1: Pay $20,000 bill in December:

$20,000 tax deduction x 40% marginal tax rate = $8,000 in present value tax savings

After-tax cost = Pretax cost - Present Value Tax Savings

= $20,000 - $8,000 = $12,000

Option 2: Pay $20,000 bill in January:

$20,000 x 40% = $8,000

Present Value of Tax savings = $8,000 x .893 (Discount factor, 1 year, 12%) = $7, 144

After-tax cost = Pretax cost - Present value tax savings

= $20,000 - $7,144 = $12,856

You might be interested in
You decide that you need more information on how employees feel about diversity, so you create a paper and pencil survey on empl
fgiga [73]

Answer:

Discrimination against women and other minorities

Explanation:

The most likely ground for concern would be Discrimination against women and other minorities.

Diversity in the workplace means that an organization employs a diverse team of persons that reflects the views of the society in which it exists and operates. Through diversity and inclusion, no employee is treated unfairly on account of their gender, race, ethnicity.

Discrimination in labor markets, occurs when workers who have the same skill levels by education, experience, and expertise receive different pay because of their race or gender.

4 0
3 years ago
Take a look around your house and identify household products that work by means of an enzyme. name the products, and indicate h
vredina [299]
Enzymes are biological catalysts that increase the rate of chemical reactions without being used up. The most common enzyme types used in the Household care industry are proteases (example: powder labelled as meat tenderizer which reduces meat's toughness.<span>, cleaning agents,...) .E</span><span>nzymes found in some toothpastes include papain (claimed to help whiten teeth) and lysozyme (kills bacteria).</span>
6 0
3 years ago
Ahrends Corporation makes 59,000 units per year of a part it uses in the products it manufactures. The unit product cost of this
AysviL [449]

Answer: $66.90 per unit

Explanation:

Cost that would be avoided is:

= Direct materials + Direct cost + Variable manufacturing overhead + part of fixed manufacturing overhead

= 20.80 + 26.50 + 6.90 + (36.10 - 31.40)

= $58.90

If the outside supplier commits to 59,000 units a year, the company should not pay more than:

= (Number of units supplied * Avoidable cost + contribution margin on other product (opportunity cost) ) / Number of units supplied

= (59,000 * 58.90 + 472,000) / 59,000

= $66.90 per unit

8 0
3 years ago
Instead of assigning access for each user account individually, ________ is a more efficient and easier-to-manage approach. Cent
katovenus [111]

Answer:

Role-Based Access Control (RBAC)

Explanation:

Instead of assigning access for each user account individually, Role-Based Access Control (RBAC) is a more efficient and easier-to-manage approach.

In computer systems security, role-based access control or role-based security is an approach to restricting system access to authorized users. <u>It is used by the majority of enterprises with more than 500 employees,</u> and can implement mandatory access control or discretionary access control.

Hence, access need not be assigned for each user individually.

4 0
3 years ago
Explain instances which render leadership unnecessary
Scilla [17]

Leadership is not needed when:

  • It will make processes inefficient due to time wasting
  • It is being used to oppress people
  • Subordinates don't need leadership

Leadership is usually quite good as it can galvanize subordinates to be better workers due to better organization as well as inspiration.

There are instances where it is not needed however such as when:

  • It slows down processes - sometimes leaders will need to give permission for a subordinate to do something. If this thing is time conscious and the leader is not available to give their ascent, the whole process could suffer.

  • It oppresses people - when a leader is an oppressive one and acts in such a way that their subordinates suffer, that leadership is not needed.

  • Subordinates are fine without it - sometimes workers have the necessary skills and experience to operate independently without a leader. In such a case, a leader is not needed.

In conclusion, while a leader is quite important in many ways, there can be situations where it is best that they are not used.

<em>Find out more at brainly.com/question/24150490.</em>

3 0
2 years ago
Other questions:
  • The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the
    6·1 answer
  • Explain briefly why the private market for public goods is typically characterized by underprovision. Under what situations will
    5·1 answer
  • Nelson Manufacturing has the following data:Variable costs are 60% of the unit selling price.The contribution margin ratio is 40
    6·1 answer
  • The purpose of time management is to ________.
    8·2 answers
  • How does lean six sigma define quality?
    7·1 answer
  • Newly issued securities are sold to investors in which markets?
    11·2 answers
  • On January 2, 2020, Warner Co. purchased 40% of Kyle Co.’s outstanding common stock. The carrying amount of Kyle's depreciable a
    11·1 answer
  • Name one form of collusion
    7·2 answers
  • The Adept Co. is analyzing a proposed project. The company expects to sell 3,500 units, give or take 10 percent. The expected va
    8·1 answer
  • A form of economic organization that relies primarily on private ownership of productive assets, freedom of exchange, and market
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!