<u>Solution and Explanation:</u>
Abner & Bette Gross Income = $80,000.00
Less: the Standard deduction (as per Federal tax $12700 for 2017) $ (12,700.00)
Less: the Personal Exemption($4050*2) $(8,100.00)
Ans (a) Abner's & Bette taxable income in 2017 $ 59,200.00
<u> The Personal Exemption Amount</u>
The personal exemption amount for 2017 is $4,050.
Standard Deduction Amounts
The 2017 standard deduction amounts will be as follows:
Single or married filing separately: $6,350
Married filing jointly: $12,700
Head of household: $9,350
Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
Answer:
It would sell for 761.49 dollars
Explanation:
Generally, stock prices are determined on stock market based on supply and demand mechanism. However, according to the discount dividend model present value of stock could be calculated as dividend per share/(cost of capital equity-growth rate). Growth rate between year 1 and 2 is 3-4/4 equals to -0.25%. From year 2 until year 3 it is 46-3/3 equals to 14.33%. Now we can take arithmetic average of these two and we get 7.04%( 14.33-0.25/2). Finally share could sell today for 46+3+4/(14-7.04%) equals to 761.49 dollars
Answer:
d. cultural
Explanation:
Cultural barrier -
It is the expectation or rule according to any culture which prevents someone for any other culture from being included .
The most common cultural barriers are the religion and language .
Same is the case with Dave Malloy , as he treated the with a hearty handshake , but did not get a warm or good regards from the other person .
Because for each and every cultural and religion , the method of welcoming someone is different , hence , the case given in the question is of cultural barrier .
