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
xeze [42]
3 years ago
15

Assume a single taxpayer is taxed at 10% on the first $9,275 of taxable income, 15% on the next $28,375 of income, and at 25% fo

r the following $53,500 of income. What is the average tax rate for that individual if her taxable income is $42,000?
Business
1 answer:
Ksenya-84 [330]3 years ago
6 0

Answer:

14.93%

Explanation:

Given:

For taxable income $9,275, tax rate = 10%

For taxable income $28,375, tax rate = 15%

For taxable income $53,500, tax rate = 25%

Now,

Tax on income =  tax rate  × taxable income

thus,

Total Tax on first $9,275 = $9,275 × 10% =  $927.5

and,

Total tax on next $28,375 = $28,375 × 15% = $4,256.25

Therefore, the total income that has been taxed till the $9,275 + $28,375

= $37,650.

and, the amount left to be taxed = $42,000 - $37,650 = $4,350

Thus,

Tax on remaining $4,350 = $4,350 × 25% = $1,087.5

Total tax = $927.5  + $4,350  + $1,087.5  = $6,365

Therefore,

The average tax rate = \frac{\textup{Total tax}}{\textup{Taxable income}}\times100

or

The average tax rate = \frac{6,365}{42,000}\times100

or

Average tax = 14.93%

You might be interested in
Receivables might be sold to
harina [27]

Answer:

generate cash quickly.

Explanation:

The selling of receivables for the collection of cash is known as factoring. It is done by engaging a third party ( usually finance companies) to purchase the debt owed by another party for cash such that when the debt are settled, the settlement goes to the third party.

Receivables might be sold to collect cash (thus shortening the cash-to-cash operating cycle). This is usually done at an amount lower than the receivable itself mostly with the motive of improving cash flows for the selling organization.

Considering all the option given the right option is Receivables might be sold to.

3 0
3 years ago
The idea of rational expectations suggests that :_________
frozen [14]

Answer:C

Explanation:The theory believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct.

4 0
2 years ago
15) keeping a product generic as long as possible before customizing is known as:__________
ASHA 777 [7]

Postponement is the practice of keeping a product generic for as long as possible before modifying it.

By deferring current investment in a good or service until the very last minute, postponement is a business strategy that tries to maximize reward and reduce risk. A supply chain technique for quick adjustment to shifting market conditions is postponement. Lead times are lowered, working capital is cut and waste is eliminated. Postponement is a make-to-order strategy in contrast to conventional make-to-forecast methods, when things are quickly customized from stocks of nearly complete products, frequently close to customers. Modern enterprises employ postponement as a key supply chain management strategy in order to survive in the cutthroat business climate of today.

Learn more about postponement

brainly.com/question/8438817?

#SPJ4

6 0
1 year ago
On January 1, 2015, Alpha Manufacturing purchased a machine for $920,000. The company expects the machine to remain useful for e
Pie

Answer:

The accumulated depreciation at 1 January 2019 = $425000

January 1, 2019

Accumulated Depreciation               425000 Dr

Cash                                                    400000 Dr

Loss on disposal                                95000 Dr

      Machine                                                               920000 Cr

Explanation:

The straight line method of depreciation charges a constant depreciation expense every year through out the estimated useful of the asset. The depreciation expense per year under this method is calculated as,

Depreciation expense per year = (Cost - Residual value) / estimated useful life of the asset

Depreciation expense per year = (920000 - 70000) / 8 = $106250 per year

The asset was used for four years from 2015 to 2018. Thus, the accumulated depreciation at 31 December 2018 is,

Accumulated depreciation - 31 Dec 2018 = 106250 * 4 = $425000

The Net book value of the asset at 31 December 2018 = 920000 - 425000 = $495000

The loss on disposal is = 495000 - 400000 = $95000

4 0
3 years ago
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation is a
stealth61 [152]

Answer:

Margin of safety= $275,862

Explanation:

Giving the following information:

Sales (50,000 units) $1,000,000

Costs:

Direct materials $270,000

Direct labor 240,000

Fixed factory overhead 100,000

Variable factory overhead 150,000

Fixed marketing costs 110,000

Variable marketing costs 50,000

First, we need to calculate the total variable costs and total fixed costs:

Total variable costs= 270,000 + 240,000 + 150,000 + 50,000

Total variable costs= 710,000

Total fixed costs= 100,000 + 110,000= 210,000

Now, we need to determine the break-even point in dollars:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 210,000 / [(1,000,000 - 710,000)/1,000,000]

Break-even point (dollars)= 210,000/0.29

Break-even point (dollars)= 724,138

Finally, the margin of safety in dollars:

Margin of safety= (current sales level - break-even point)

Margin of safety= 1,000,000 - 724,138

Margin of safety= $275,862

6 0
2 years ago
Other questions:
  • Garcia Ltd. is trying to estimate its cost of common equity, and it has the following information. The firm has a beta of 0.90,
    8·1 answer
  • Jack receives a check from Kappa Company and indorses it "without recourse." This indorsement is:______.a. a blank indorsement.
    7·1 answer
  • A customer is dollar cost averaging by investing $400 per month into a mutual fund. Over 4 months, the customer has made purchas
    5·1 answer
  • 1. Assume the value of a market basket for a given year is $550 and the same basket in the base year was $500. Calculate the CPI
    15·1 answer
  • How to get a personal loan with bad credit?
    6·1 answer
  • Why must people make choices in economic situations?
    15·1 answer
  • Murphy & Johnson is a privately owned manufacturer of small motors for lawnmowers, tractors, and snowmobiles. The components
    7·1 answer
  • Your text discusses several challenges facing managers today. As Cook continues to grow Apple, he is likely to encounter which o
    13·1 answer
  • LO 1.2Who are the primary users of the information gathered by managerial accountants?
    12·1 answer
  • Fill in the blanks.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!