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2 years ago

Where does the money you pay for the FICA tax on your paycheck go?

Business

1 answer:

strojnjashka [21]2 years ago

4 0

Answer:

see below

Explanation:

Social security and medicare taxes form the Federal Insurance Contributions Act (FICA) tax. These taxes are deducted from both the employer and employee per paycheck.

Social security tax forms the bulk of the FICA tax. The tax revenue collected as social security tax funds the United States government Social Security Trusts. The trusts are programs managed by the Social Security administration and include

Retirement benefits
Survivor benefits
Disability benefits

Medicare tax revenue funds Federal government medicare programs. This program caters to older American health care costs. The government's general revenue also finances health care. Medicare or health services in the USA are not solely dependent on medicare tax.

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Which of the following generational groups is most likely to represent the present owners of cottages surrounding Witmer Lake?A)

yawa3891 [41]

I think it’s d but try to search it D

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2 years ago

A higher level of interest income can be received if a savings account offers a promotional rate.

KiRa [710]

True. One would get the regular stated interest rate plus the additional promotional rate. Thus one would recieve a higher income via the savings rate.

4 0

3 years ago

The owner of a small business borrowed $70,000 with an agreement to repay the loan with quarterly payments over a five year time

siniylev [52]

Answer:

His loan payment each quarter is nearest to $4,705.10.

Explanation:

Using a Financial Calculator enter the following data and find PMT, the loan payment each quarter

Pv = $70,000

n = 4 × 5 = 20

r = 12%

P/yr = 4

Fv = $0

Pmt = ? - $4,705.10

Thus PMT, the loan payment each quarter will be $4,705.10.

8 0

3 years ago

The cost constraint suggests that, even when the cost of providing accounting information exceeds its benefit, the financial acc

Alekssandra [29.7K]

Answer:

False

Explanation:

The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.

For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.

Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.

3 0

3 years ago

Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recomm

ruslelena [56]

Answer:

Share price : $ 56.23

Explanation:

CAPM

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.05

market rate = 0.11

premium market = (market rate - risk free) 0.06

beta(non diversifiable risk) = 1.64

$Ke= 0.05 + 1.64 (0.06)$

Ke 0.14840

Now, we solve for the present value of the future dividends:

year dividend* present value**

1 2.91 2.53

2 3.31 2.51

3 3.78 2.49

4 4.31 2.48

4 80.38 46.22

TOTAL 56.23

*Dividends will be calculate as the previous year dividends tiems the grow rate

during the first four year is 14%

then, we calcualte the present value of all the future dividends growing at 9% using the dividend grow model:

$\frac{D_1}{K_e-g}$

(4.31 x 1.09) / (0.1484 - 0.09) = 80.38

Then we discount eahc using the present value of a lump sum:

$\frac{Cashflow}{(1 + rate)^{time} } = PV$

We discount using the CAPM COst of Capital of 14.84%

last we add them all to get the share price: $ 56.23

4 0

3 years ago