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OleMash [197]
3 years ago
5

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

a $22,000 bill from her accountant for consulting services related to her small business. Reese can pay the $22,000 bill anytime before January 30 of next year without penalty. Assume Reese’s marginal tax rate is 32 percent this year and will be 37 percent next year, and that she can earn an after-tax rate of return of 6 percent on her investments. a. What is the after-tax cost if she pays the $22,000 bill in December?
Business
2 answers:
Nady [450]3 years ago
8 0

Answer:

$14,960

Explanation:

Pay $22,000 bill in December:

$22,000 tax deduction × 32%marginal tax rate = $7,040 in present value tax savings.

After-tax cost= Pretax Cost − Present Value

Tax Savings= $22,00 − $7,040

= $14,960

Therefore the after-tax cost if she pays the $22,000 bill in December will be $14,960

xxMikexx [17]3 years ago
5 0

Answer:

$ 14,960.00  

Explanation:

By paying the $22,000 in settlement of the accrued bills payment,Reese would have a tax savings equal to the 32% of the amount paid since the payment is tax deductible,the payment would reduce taxable income by $22,000,in effect reduce tax payable by $7,040 (32%*$22,000).

All in all,the after tax cost of the payment is the actual payment of $22,000 less tax savings of $7,040.

After tax cost of bills=$22,000-$7,040=$ 14,960.00  

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vovikov84 [41]

The answer is C: $63.54. The credit card will be charged $63.54 in Canadian dollars for 12.00 gallons of gas.

Solution:

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The official currency of Canada is the Canadian dollar (sign: $; code: CAD; French: dollar canadien). There is no standard disambiguating form; nevertheless, prominent style guides frequently recommend the abbreviation Can$ to distinguish it from other dollar-denominated currencies. It is abbreviated with the dollar sign $. There are 100 pennies in it.

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C) $63.54

D) $4.44

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3 0
1 year ago
How would you array the following organizations in terms of the depth and breadth of their product lines?
Evgen [1.6K]

Answer:

a. The depth of a solo practice family practitioner is narrow whereas its breadth can be wide.

b. They have wide depth and breadth.

c. It has narrow depth and breadth.

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Explanation:

Depth means number of variants of each product. Breadth means variety of different products offered.

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3 0
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2 years ago
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Explanation:

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Answer

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