Answer:
Jana just found out that she is going to receive an end-of-year bonus of $32,200. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus.
- tax liability = $32,200 x 35% = $11,270
Now assume that instead of receiving a bonus, Jana receives the $32,200 as a long-term capital gain. What will be her tax?
- tax liability = $32,200 x 15% = $4,830
Which form of compensation offers Jana the best after-tax return?
- if the bonus is taxed as a long term capital gain, she will páy less than half the taxes, so it is the best option for her
Would your calculation be different if the gain was short-term rather than long-term?
- Short term capital gains are taxed at the same rate as ordinary income, so the difference between the bonus being a long vs short term capital gain is very significant to Jana.
company B has the greater operating leverage
What is operating leverage?
A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.
The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.
Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.
Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.
Learn more about operating leverage with the help of given link:-
brainly.com/question/6238482
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It’s really blurry i can’t see
<span>A good rule of thumb is to limit consumer credit payments to 20% percent of your net monthly income.</span>
Answer:
$10,000 increase in stockholder equity
Explanation:
The buying of treasury stock reduces the balance of stockholder equity but when the treasury stock is reissued or we can say after purchase, the sale of treasury stock is done for $10,000. So, it increases the balance of stockholder equity
It means that the purchase of treasury stock has an adverse impact on stockholder equity whereas reissued shares have a positive impact on stockholder equity
