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Dmitrij [34]
3 years ago
14

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

a $38,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $38,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 12 percent on her investments. a. What is the after-tax cost if Isabel pays the $38,000 bill in December?
Business
1 answer:
Olegator [25]3 years ago
8 0

Answer:

The after-tax cost is $23,940

Explanation:

For computing the after-tax cost, first we have to compute the present value which is shown below:

Present value = Bill payment × marginal tax rate

                       = $38,000 × 37%

                       = $14,060

So, after tax value would equal to

= Bill payment or Pre tax value - Present value

= $38,000 - $14,060

= $23,940

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Statement: "Whenever a company’s activities reduce the quality of life for nearby homeowners, the company should be legally requ
olganol [36]

Answer:

2) assumption not made

Explanation:

The original statement does not include any assumption about what the companies are doing about this issue, it just proposes an idea of fair compensation.

maybe whoever wrote this statement believes that very few companies or none at all actually compensate homeowners for a reduction in the market value of their properties, but it doesn't state it. It is also possible that the statement assumes that companies are paying some compensations or were paying some compensations but are not willing to continue to do it since no legislation forces them to do so. The author's position is vague and not clear with respect to what the companies are currently doing.

4 0
3 years ago
Which of the following is NOT a necessary condition for oligopoly? differentiated products barriers to entry strategic dependenc
stepladder [879]

Answer:

differentiated products.

Explanation:

An oligopoly occurs when a few large firms dominate a market and they aim to maximise profit. The action of one firm has significant effect on the market, so the firm's are interdependent.

There are high barriers to entry including use of government liscences, patents, economies of scale, and actions taken by firms to discourage entry into the market.

However differentiation of products is not a necessary condition for oligopoly. Products can be homogenous or differentiated.

8 0
3 years ago
Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to?
alisha [4.7K]

Answer:

Errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts.

<h3>How does the auditor obtain reasonable assurance?</h3>
  • In order to obtain reasonable assurance, the auditor shall obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.
  • Reasonable assurance is obtained when the auditor has thereby reduced audit risk to an acceptably low level.

To learn more about it, refer

to brainly.com/question/24553900

#SPJ4

5 0
1 year ago
Sal contracts with Tasty Pizza Company to deliver its products. Later,both parties change their minds and decide to cancel their
goldenfox [79]

Answer:

.b.can agree to a new contract that includes the new price

Explanation:

When Sal and Tasty agreed to cancel their first contract, that was the end of that particular contract. No further negotiations can take place because the contract doe not exist. By calling Tasty the following day, Sal was initiating a new contract.

A  new contract does not need to make any references to the canceled contract. Sal and Tasty are free to negotiate for new terms and negotiations since this is a new contract. The details of the canceled contract are no longer binding to them.

5 0
3 years ago
The Salt and Pepper Partnership was formed in January of the current year when Salt and Pepper each contributed $10,000 cash and
Novay_Z [31]

Answer:

Salt's basis = -$3900 from a 50% sharing basis

Explanation:

profit sharing ratio as per contributions is 50%:50%

ordinary loss                  - $5000

tax exempt income       -$2000                  

Charitable contribution -$800

Taxable loss                 =$7800

profit(loss) share

Salt                         = -3900

Pepper                   =-3900

3 0
3 years ago
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