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Natasha_Volkova [10]
3 years ago
13

For each of the following scenarios, indicate which of the four basic tax planning variables (entity, character, time period, ju

risdiction) impacts after-tax value.
a. Aloha Corporation is considering building a new manufacturing facility in either State U or State P. State U has a 10 percent state income tax rate. State P has a 15 percent state income tax rate, but offers a tax holiday for new business investment that would exempt up to $250,000 of Aloha’s earnings from state income tax for the first five years of operations in State P.
b. Mary wishes to help her nephew, Gill, pay his college tuition. Instead of giving Gill cash, Mary gives him bonds earning $10,000 annual interest income. Mary’s marginal tax rate is 35 percent and Gill’s marginal tax rate is 15 percent.
c. Congress has recently enacted a decrease in corporate tax rates that will take effect at the beginning of next year. Grant Company, a cash basis taxpayer, is planning to pay expenses prior to year-end in order to maximize its tax savings in the current year.
d. Will has $50,000 to invest in the stock market. He is considering two alternatives. Stock A pays annual qualifying dividends of 6 percent. Stock B pays no dividends but is expected to increase in value at a rate of 5 percent per year. Will would hold either investment for a minimum of four years. Will’s marginal tax rate on ordinary income is 35 percent.
Business
1 answer:
babymother [125]3 years ago
7 0

Answer:

Letter D is the answer

Explanation:

trust me bro

You might be interested in
What are federal corporate income taxes considered before they are paid to the government?
Vladimir [108]
The answer would be D (expenses) when it comes to taxes.
5 0
4 years ago
Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly a. is often not in the b
olchik [2.2K]

Answer:

a. is often not in the best interest of society. 

Explanation:

A monopoly is when there is a single firm operating in an industry. This is usually so because of high barriers to entry of other firms.

Because a monopoly has only one firm in the industry, the firm sets prices to maximise profit. The firm earns economic profit in the short and long run.

The monopoly benefits the producer more than consumers. It is often inefficient and fails to maximise total welfare .

Because of these inefficiencies, government usually steps in to regulate the activities of a monopoly.

I hope my answer helps you.

4 0
3 years ago
Derst Inc. sells a particular textbook for $22. Variable expenses are $13 per book. At the current volume of 51,000 books sold p
Solnce55 [7]

Answer:

None of the choice is correct;  The correct answer is $459,000

Explanation:

The company is just breaking even at current volume of 51,000 books sold per year, then its revenue = total cost

↔ unit sold * selling price = fixed cost + unit sold * variable cost

↔  51,000 * $22 = fixed cost + 51,000 * $13

↔ Fixed cost = $1,122,000 - $663,000

↔ Fixed cost = $459,000

4 0
3 years ago
​Employees' beliefs in the degree to which they influence their work​ environment, their​ competence, the meaningfulness of thei
pogonyaev

Answer: Psychological empowerment

Explanation:

 The psychological empowerment is the term which refers to the work environment in which it reflecting the self motivation and control in the work.

This term is basically describe about the different types of perspective of an employees by internalization the goals in an organization.

According to the given question, the employees is basically belief in their degree and also influence the work environment in terms of self determination and they also perceived the autonomy.

 Therefore, Psychological environment is the correct answer.

7 0
4 years ago
Dell Computers would like to borrow pounds, and Virgin Airlines wants to borrow dollars. Because Dell is better known in the Uni
Alex73 [517]

Answer:

Explanation:

                        USD GBP        Prefers

Dell                     7           9         GBP

Virgin Airlines    8          8.5        USD

In a swap exchange Party A will have a relative preferred position in one money and Party B will have a bit of leeway in the other cash. For this situation Dell has a similar bit of leeway in USD getting rate and Virgin has a preferred position in GBP acquiring rate.  

Additionally note that dependent on the FICO assessments of the organization the acquiring rate will vary pulling in parties for a swap exchange.

Virgin would borrow £10 million for two years and Dell would borrow $16 million for two years. The two companies would then swap their proceeds and payment streams. Then they enter into a swap agreement to exchange their cash flows to get their preferred currency rates with an interest rate mutually benefiting both the parties.

6 0
4 years ago
Read 2 more answers
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