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Bogdan [553]
3 years ago
7

Salvatore and Annette are sales managers for Acme USA. Both work full-time in the Acme offices under the same manager, and share

the same type of job responsibilities. Salvatore was hired as an employee, and is paid a salary. Required federal and state tax withholdings are made by Acme for Salvatore. Annette was hired as an independent contractor, and is paid by the project. No federal and state withholdings are taken for Annette, and she does not receive retirement or health insurance benefits. Which of the following is the likely true?
a. Acme properly classified Annette as an independent contractor.
b. Acme willfully misclassified Annette as an independent contractor and is liable under Fair Labor Standards Act of 1938.
c. Acme has no rights to withhold federal and state taxes for Salvatore if he is classifed as a full-time employee.
d. Acme has to provide more health and retirement benefits to Annette than Salvatore because Annette is an independent contractor.
Business
2 answers:
harina [27]3 years ago
6 0

Answer:

<em>A</em>

Explanation:

Acme classified Annette as an independent contractor and as such, isn't entitled to certain benefits as compared to Salvatore that was hired as an employee. A contracting staff's timing and work benefits are always limited in comparison to that of an actual employee.

Hatshy [7]3 years ago
6 0

Answer: B. Acme willfully misclassified Annette as an Independent Contractor and is liable under the Fair Labor Standards Act of 1938.

Explanation:

A full-time employee is bound by the rules and regulations guiding the organization he works for and is placed on a salary with accompanying benefits. Whereas, an independent contractor is a self-employed worker hired by the company to handle some projects or tasks for them. He has the freedom to work at his own pace.

If Annette is now a full-time worker, he is entitled to benefits as well as tax withholdings by the company. Since the company now makes Annette work full-time, it simply means that he was willfully misclassified as an independent contractor and therefore, the company is liable under the Fair Labor Standards Act of 1938.

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firm has 2,000,000 shares of common stock outstanding with a market price of $2 per share. It has 2,000 bonds outstanding, each
Yuki888 [10]

Answer:

A Firm

The firm's WACC is:

= 12.16%

Explanation:

a) Data and Calculations:

                                              Common               Bonds

                                                  Stock

Outstanding shares/bonds  2,000,000              2,000

Market price per unit                $2                     $1,200

Total market value             $4,000,000   $2,400,000

Total value of debt and equity = $6,400,000

Weight                                      62.5%                37.5% ($2,400/$6,400*100)

Cost of bonds (coupon rate) = 10%

Tax rate = 34%

Firm's beta = 1.5

Risk-free rate = 5%

Market risk premium = 7%

After-tax cost of bonds = 6.6% (1 - 0.34) * 10%

Cost of common stock =

Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 5% + 1.5 x (7%)

= 5% + 10.5%

= 15.5%

WACC = 15.5% * 62.5% + 6.6% * 37.5%

= 0.096875 + 0.02475

= 0.1216

= 12.16%

7 0
3 years ago
Lawn Chopper Company sells two types of lawn mowers. The first one is a basic lawn mower, which has variable costs of $50 and se
Temka [501]

Answer:

See below

Explanation:

Breakven even point is computed as

= Fixed costs / ( Sales price per unit - Variable costs per unit)

For basic lawn mower, Given that;

Fixed cost = $5,000,000

Sales price per unit = $150

Variable costs per unit = $50

BEP = $500,000 / ($150 - $50)

BEP = $500,000 / $100

BEP = 5,000 units

For Riding tractor, given that;

Fixed costs = $500,000

Sales price per unit = $1,500

Variable cost per unit = $500

BEP = $500,000 / ($1,500 - $500)

BEP = $500,000 / $1,000

BEP = 500 units

It therefore means that 5,000 units of basic Lawn mower must be sold to break even, while 500 units of riding tractor must be sold to break even.

7 0
3 years ago
Bachelor's degrees are awarded by
Misha Larkins [42]
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3 years ago
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Which type of question best fits the purpose of an interview
Elena L [17]
I think the answer would be a background question.

I hope that helped :)
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"Under what circumstances might a broker open a separate escrow account for each beneficiary of a transaction?"
hodyreva [135]

Answer and Explanation:

If the broker shall have an "ownership interest" in a company, joint venture or alliance, and shall receive payments for the selling or lease of such land of these institutions.

Then the broker may choose to set up a separate escrow account for each "major accounting company" controlled or otherwise operated to comply with this and other regulations.

6 0
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