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riadik2000 [5.3K]
3 years ago
14

Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave receives $75,000

Business
1 answer:
qaws [65]3 years ago
8 0

Answer: $12717

Explanation:

1. The amount of FICA and/or self-employment tax that Dave is required to pay on his compensation and his

share of the KBS income if KBS is formed as a C corporation, will be:

= 7.65% × $75000

= 7.65/100 × $75000

= 0.0765 × $75000

= $5738

2. As an S Corporation will be:

= 7.65% × $75000

= 7.65/100 × $75000

= 0.0765 × $75000

= $5738

3. As a limited liability company will be:

Dave's compensation = 75,000

Dave's portion of income will be calculated as:

= 50% × $30,000

= 0.5 × $30,000

= $15,000

Total will then be:

= $75000 + $15000 = $90000

We then calculate the net earnings which will be:

= 92.35% × $90000

= 0.9235 × $90000

= $83115

The FICA and/or self-employment tax that Dave is required to pay will then be:

= 15.3% × $83115

= 0.153 × $83115

= $12717

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Answer:

Explanation:

World literature has many pros for those interested in it. For a businessman in a multinational corporation, it allows them to understand and learn about diverse cultures, their beliefs, traits, habits, and the way they communicate. It also allows them to look beyond the horizon and think without bias. All of this combines and creates valuable information and ideas for the corporation to help it thrive in various locations. Just like this, having an interest in books will always be an advantage to anyone as they provide knowledge and knowledge will always bring with it power.

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3 years ago
Typically homes blank over time and cars blank over time
icang [17]
Home usually in increase in value while cars decrease in value.
8 0
3 years ago
A limitation of bond ratings is that they ____
Andrej [43]

A limitation of bond ratings is that they focus exclusively on default risk.

When investing, the bond rating represents the creditworthiness of a corporate or government bond. It's not the same as a person's creditworthiness. Ratings are published by rating agencies and used by investment professionals to assess the likelihood of debt repayment.

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8 0
2 years ago
Currently Ark is charged $3,144,267 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this
german

Question Completion:

A)Have no impact on the Net Cash from Operations as depreciation appears in both the Cash Flow and the Income Statement

B)Decrease Net Cash from Operations on the Cash Flow Statement

C)Increase Net Cash from Operations on the Cash Flow Statement

D)Just impact the balance sheet

Answer:

C)Increase Net Cash from Operations on the Cash Flow Statement

Explanation:

When Andrews increases the depreciation charge of $3,144,267 to a higher amount, this will decrease the net operating income.  In computing the adjustment to net income for non-cash expenses, the increased depreciation will automatically increase the net cash from operations because of the tradeoff effects.  So, on the financial statements of Andrews, specifically on the Statement of Cash Flows, the increased depreciation expense or charge will positively increase the net cash from operating activities.

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4 years ago
Concord Corporation, which has a taxable payroll of $1320000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.
insens350 [35]

Answer:

The answer is: Concord Corporation´s total unemployment taxes (both federal and state) sum $108,240

Explanation:

Concord Corporation taxable payroll is $1,320,000

We first calculate the federal unemployment tax (FUTA) at a 6.2% rate

         FUTA tax 6.2%                                                   $81,840

Then we calculate the state  unemployment tax rate, but we use a 2% instead of the normal 5.4%

         State tax                                                              $26,400

This adds up to a total of $108,240 for both the federal and the state unemployment taxes.

5 0
3 years ago
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