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lianna [129]
3 years ago
10

g Jana just found out that she is going to receive an​ end-of-year bonus of ​$32,200. She is in the 35 percent marginal tax brac

ket. Calculate her income tax on this bonus. Now assume that instead of receiving a​ bonus, Jana receives the ​$32,200 as a​ long-term capital gain. What will be her​ tax? Which form of compensation offers Jana the best​ after-tax return? Would your calculation be different if the gain was​ short-term rather than​ long-term? Her income tax on this bonus is ​$nothing. ​(Round to the nearest​ dollar.) Now assume that instead of receiving a​ bonus, Jana receives the ​$32,200 as a​ long-term capital gain. What will be her​ tax? Which form of compensation offers Jana the best​ after-tax return? Would your calculation be different if the gain was​ short-term rather than​ long-term? ​ (Select the best answer​ below.) A. Jana will pay ​$4,830 ​($32,200× ​15%) in​ long-term capital gains taxes. Due to the reduced tax​ rate, the​ long-term capital gain offers Jana the best​ after-tax return. Because​ short-term capital gains are taxed as ordinary​ income, she will not receive any tax benefit if she receives the bonus as a​ short-term capital gain.
Business
1 answer:
maria [59]3 years ago
8 0

Answer:

Jana just found out that she is going to receive an​ end-of-year bonus of ​$32,200. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus.

  • tax liability = $32,200 x 35%  = $11,270

Now assume that instead of receiving a​ bonus, Jana receives the ​$32,200 as a​ long-term capital gain. What will be her​ tax?

  • tax liability = $32,200 x 15% = $4,830

Which form of compensation offers Jana the best​ after-tax return?

  • if the bonus is taxed as a long term capital gain, she will páy less than half the taxes, so it is the best option for her

Would your calculation be different if the gain was​ short-term rather than​ long-term?

  • Short term capital gains are taxed at the same rate as ordinary income, so the difference between the bonus being a long vs short term capital gain is very significant to Jana.

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Kubin Company’s relevant range of production is 24,000 to 31,000 units. When it produces and sells 27,500 units, its average cos
zvonat [6]

Answer:

  1. total product costs incurred to make 27,500 units = $25.10 x 27,500 = $690,250
  2. total period costs incurred to make 27,500 units = $15.10 x 27,500 = $415,250
  3. total product costs incurred to make 31,000 units = $25.10 x 31,000 = $778,100
  4. total period costs incurred to make 24,000 units = $15.10 x 24,000 = $362,400

Explanation:

                                                       Average Cost per Unit

  • Direct materials                                   $8.90
  • Direct labor                                           $5.90
  • Variable manufacturing overhead   $3.40
  • Fixed manufacturing overhead           $6.90
  • Fixed selling expense                           $5.40
  • Fixed administrative expense           $4.40
  • Sales commissions                           $2.90
  • Variable administrative expense           $2.40

Product costs include direct labor, direct materials, production supplies, and factory overhead. Product costs per unit = $8.90 + $5.90 + $3.40 + $6.90 = $25.10

Period costs include selling and administrative expenses. Period costs per unit = $5.40 + $4.40 + $2.90 + $2.40 = $15.10

4 0
3 years ago
For every problem-solving activity it is crucial that no less than five alternatives be considered.
jok3333 [9.3K]

Answer:

true

Explanation:

beacause

5 0
3 years ago
Reynolds Construction's value of operations is $750 million based on the free cash flow valuation model. Its balance sheet shows
zhuklara [117]

Answer:

option (d) $500

Explanation:

Data provided in the question:

Reynolds Construction's value of operations = $750 million

short-term investments = $50 million

accounts payable = $100 million

notes payable = $100 million

long-term debt = $200 million

common stock = $40 million

retained earnings = $160 million

Now,

Firm value of equity

= Free cash flow value + Investments - Debt - Notes payable

= $750 million + $50 million - $200 million - $100 million

= $500 million

Hence,

the correct answer is option (d) $500

6 0
3 years ago
In the budget constraint framework, when the price of a good rises and demand for the other good decreases, what can you say abo
nignag [31]

Answer:

The increase in demand of the product with the higher price or decrease in demand for the other goods is because the substitution effect is outweighed by the income effect of price increase.

Explanation:

The above explanation in economics refers to Giffen Good. The idea behind this concept Giffen is that if you do not have money and there is an increase in the price of a fundamental product such as bread, it is still impossible to afford other alternatives, hence you will go ahead to buy bread or avoid buying any of the product. Hence, the demand for other product will also decrease in this case. This means that the demand for product with higher price or decrease in other substitute product is due to the fact that the income effect outweighs the substitution effect. Hence people do not have the money to even afford the alternative product.

8 0
3 years ago
Suppose that Mexico experienced a very severe period of inflation in 1972. As prices in Mexico rose, the demand in the foreign e
melomori [17]

Answer:

demand for pesos would fall and supply would rise. their value would decrease as a result

Explanation:

Inflation is a persistent rise in general price level.

When there is high inflation in a country, the demand for the currency would fall because the value of the currency is low. this fall in demand coupled with the excess supply of the currency would lead to a fall in the value of the currency.

6 0
3 years ago
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