Answer:
Employers treat the taxable fringe benefits the same as cash compensation.
Explanation:
Taxable fringe benefits "are included in gross income and subject to federal withholding, social security, and Medicare taxes".
Fringe benefits are "perks and additions to normal compensation that companies give their employees, such as life insurance, tuition assistance, or employee discounts".
* The cost of the taxable fringe benefit is deductible to the employer, not the value of the benefit to the employee.
FALSE, the taxable fringe benefit is not deductible from the employer.
* Employers treat the taxable fringe benefits the same as cash compensation.
TRUE, and as we can see on the definition above the taxable fringe benefits are treated as a compensation that comapnies giv their employees.
Answer:
$2,500,000
Explanation:
Break Point = Level of debt / Weight of debt
(100%-40%)
=60%
Hence:
= 1,500,000 / 60%
= $2,500,000
Therefore the debt breakpoint in the MCC schedule will be $2,500,000
Answer:
No
Explanation:
to determine if another 10% decrease in the price cause another 8% increase (no more and no less) in quantity demanded, we have to determine the price elasticity of demand.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
8% / 10% = 0.8
demand in inelastic so a 10% reduction in price would lead to a less than 8% change in quantity demanded
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
D) magazines can only be deducted if purchased for a business.
