The accounts that appear on the post-closing trial balance are

Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if,

yulyashka [42]

Answer:

The question is not complete.

Here is the complete question:

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the US tax rate schedule)

Required:

a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?

b. What is his marginal rate if, instead, he had $40,000 of additional deductions?

Here are the answers:

a. 24%

b. 12%

Explanation:

Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).

Chuck Marginal Tax Rate

a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:

= $75,000 + $40,000

= $115,000

Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.

b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:

= $75,000 - $40,000

= $35,000

The marginal tax rate for taxable income of $35,000 is 12% according IRS tax rate schedule.

Note: the interest is categorized as interest from municipal bond, so it is tax free.

It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.

6 0

3 years ago

Ciara is taking AP Biology and her twin brother, Elon, is in regular Biology. At the end of the year, Ciara earned a B and Elon

ozzi

Both Ciara and Elon earned the same number of points toward their GPA.

AP classes are on a 5.0 scale, so a b in an AP class is the same as an A in a regular class

8 0

2 years ago

Read 2 more answers

A company has a cost of debt (before tax) of 5.5% and a cost of equity of 12.8%. In addition, the company has a target capital s

alexira [117]

Answer:

10.12%

Explanation:

Wacc = (D / V)rd (1 - t) + (E / V) re

(D/V) = 0.3

Rd = before tax cost of debt = 5.5%

T = tax rate = 30%

(E / V) = 0.7

Re = marginal cost of equity = 12.8%

= (0.3 x 5.5% × 0.7) + (0.7 x 12.8%) = 1.155% + 8.96% = 10.12%

I hope my answer helps you

4 0

3 years ago

One of the more important business applications of demand elasticity is the relationship between price and total revenue. For ea

user100 [1]

Answer:

Part 1. inelastic.

Part 2. inelastic.

Part 3. inelastic.

Explanation:

When the coefficient of elasticity of demand is less than 1, demand is inelastic, when it is equal to 1, demand is unitary elastic, when it is greater than 1, demand is elastic, and when it is equal to zero demand is perfectly inelastic.

Part 1

Price Elasticity of demand = (dQ/dP) x P/Q

Where : dQ = Change in Quantity

dP = Change in Price

P = Initial or Old price

Q = Initial of Old Quantity

dQ = $35,000 - $40,000 = - $5,000

dP = $10 - $8 = $2

P = $8

Q = $40,000

Price Elasticity of demand = (-$5,000/$2) * $8/ $40,000

= 2,500 * 1/5000 = -0.5

Disregard the minus sign, since elasticity of demand is less than 1, demand is inelastic.

Part 2

Price Elasticity of demand = (dQ/dP) x P/Q

dQ = $1,800 - $2,000 = - $200

dP = $50 - $40 = $10

P = $40

Q = $2,000

Price Elasticity of demand = (-$200/$10) * $40/ $2,000

= 20 * 0.02 = -0.4

Disregard the minus sign, since elasticity of demand is less than 1, demand is inelastic.

Part 3

Price Elasticity of demand = (dQ/dP) x P/Q

dQ = $120 - $150 = - $30

dP = $5 - $4 = $1

P = $4

Q = $150

Price Elasticity of demand = (-$30/$1) * $4/ $150

= 30 * 2/75 = - 0.8

Disregard the minus sign since elasticity of demand is less than 1, demand is inelastic.

5 0

3 years ago

In addition to their regular compensation, managers working abroad are awarded with

Usimov [2.4K]

<span>In addition to their regular compensation, managers working abroad are awarded with international premiums.

Most workers overseas are paid/compensated higher for being in another country. These extra payments are known as international premiums which can be extra money for living, spending allowance, insurance, savings and healthcare. Depending on your role and your company, your benefits may vary slightly. </span>

6 0

3 years ago