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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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Janes, Inc., is considering the purchase of a machine that would cost $410,000 and would last for 5 years, at the end of which,
ki77a [65]

Answer:

- $33,678.21

Explanation:

Cash flow Summary of the Project will be as follows

Year 0 = $410,000 + $3,000 = - $413,000

Year 1 = $101,000

Year 2 = $101,000

Year 3 = $101,000

Year 4 = $101,000

Year 5 = $101,000 + $41,000 + 3,000 =  $145,000

So the Net Present Value can now be calculated using the CFj function of a Financial calculator as follows :

- $413,000 CF 0

  $101,000 CF 1

  $101,000 CF 2

  $101,000 CF 3

  $101,000 CF 4

 $145,000 CF 5

i/yr = 13%

Shift NPV = - $33,678.21

5 0
3 years ago
. Define a primary and secondary market for securities and discuss how they differ. Discuss how the primary market is dependent
Amanda [17]

Explanation:

Primary market for securities is one that provides access to buy new new issues of stocks and bonds of a company. A good example of primary market is an Initial Public Offering (IPO), organized by a company that wants to sell it's shares for the first time to investors.

While Secondary market, are places to sell securities to a secondary (second) buyer from the current security owner who bought from the primary market.

The primary market is dependent on the secondary market since it is the demand from the secondary market that determines the asset valuation of the primary market.

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3 years ago
Suppose you pick people at random and ask them what month of the year they were born
Ray Of Light [21]
What is the question you are asking
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In which part of a résumé would you mention the names and contact details of your previous employers?
S_A_V [24]

Answer:

work experience is the correct answer for PLATO

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Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to ser
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Answer:

Bid A should be accepted

Explanation:

Bid A:

initial investment = $5.75 x 12,000 = -$69,000

cash flows years 1 - 4 = $0.25 x 12,000 = -$3,000

cash flow year 5 = -$69,000

cash flows years 6 - 9 = $0.25 x 12,000 = -$3,000

NPV using a 9% discount rate = -$129,881.21

Bid B:

initial investment = $10.50 x 12,000 = -$126,000

cash flows years 1 - 9 = $0.09 x 12,000 = -$1,080

NPV using a 9% discount rate = -$132,474.87

3 0
3 years ago
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