1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
riadik2000 [5.3K]
2 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]2 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

You might be interested in
The Work Breakdown Structure (WBS) is normally developed by listing deliverables - major deliverables first and then progressive
AURORKA [14]

Answer:

The correct answer is True.

Explanation:

The steps to follow to create a work breakdown structure are as follows:

1. Organize a meeting and share with the main stakeholders: team members are one of the most valuable assets in the process of creating the work breakdown structure. They have the knowledge, experience and creativity necessary to define each deliverable reaching the most specific details.

2. Complete the definition of all project deliverables: it is about going one step beyond the level reached in the planning and 100% complete the information on all project deliverables, including internal and external, associating each one with its estimated completion time.

3. Break down each deliverable into smaller, more manageable parts: it is about achieving a realistic level of work planning by the project manager, which ensures that, without interfering with the total estimated project deadline and the overall plan, it can be completed by the work teams. It is about determining work packages. These units constitute the lowest level of the EDT and are pieces of work that are specifically assigned to a person or a team of people to be completed, under the supervision of the Project Director. It is recommended that they focus on a single point of responsibility. The work packages will be used later to define the activities and tasks in which the project is divided.

4. Review the results obtained: with the stakeholders, both at the time of finalizing the elaboration of the work breakdown structure, and when modifications or updates are included, if applicable. It is essential to avoid overlaps.

7 0
3 years ago
Name the four major categories of primary energy use in an industrial society, and match the energy sources that correspond to e
Fittoniya [83]

Four major categories of Primary energy use are:

1. Transportation

2. Industrial Process

3. Commercial and residential use

4. Generation of electrical power

Transportation depends entirely on petroleum, whereas nuclear power, coal, and water power are limited to the production of electricity. Electricity is in most commercial and residential use. Industrial processes use natural gas, oil, and electricity. Some oil, natural gas and biomass are used for the generation of electricity.

6 0
3 years ago
What are the effects of using leverage on cash flows?
OleMash [197]

The effects of leverage
Leverage, however, will increase the volatility of a company's earnings and cash flow. In finance, the term is used to describe the amount of cash (currency) that is generated or consumed in a given time period. There are many types of CF, as well as the risk of lending to or owning said company
3 0
3 years ago
Garfield Company has the following information for the current​ year: Beginning fixed manufacturing overhead in inventory $230,0
Lemur [1.5K]

Answer:

the difference between operating incomes under absorption costing and variable​ costing is $180,000 .

Explanation:

The difference between the two Operating Incomes lies in the amount of Fixed Overheads that has been deferred in Inventory.

So, calculation of the difference will be as follows :

Beginning fixed manufacturing overhead in inventory              $230,000

Less Ending fixed manufacturing overhead in inventory           ($50,000)

Difference  between  absorption costing and variable​ costing $180,000

3 0
3 years ago
Select the correct answer. George works in a factory and is a member of the labor union. He thinks his wages are low for the wor
lukranit [14]

Answer:

C. collective bargaining

Explanation:

Collective bargaining is when negotiations for better terms of service involve and a group of employees or organized representatives of employees and the employers. The essence of collective bargaining is to have negotiations conducted by parties with interests only, not outsiders.

Collective bargaining may involve a single firm and its employees or employees from different organizations within the industry and their employers. The negotiation objective is to reach an agreement on improved terms or better working conditions.

6 0
3 years ago
Other questions:
  • A management trainee rotates through four of her company's six divisions in a year. Her rotation is determined by random selecti
    8·1 answer
  • Pinterest has gained a reputation for being among the most negative of social media platforms.
    9·2 answers
  • on your business card your position your business as the area's most creative cookery the phrase is your
    5·1 answer
  • On January 1, 2020, Ann Price loaned $212355 to Joe Kiger. A zero-interest-bearing note (face amount, $275000) was exchanged sol
    8·1 answer
  • Ceteris paribus, based on the aggregate demand curve, if the price level _______ the quantity of real output _______ increases.
    12·1 answer
  • Firelight Company manufactures candles. The standard direct materials quantity required to produce one large candle is one pound
    8·1 answer
  • Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows
    10·1 answer
  • Ou have 3 credit cards: $990.34 (credit limit: $3,500.00), $2,365.78 (credit limit: $4,600.00), and $5,897.65 (credit limit: $8,
    9·1 answer
  • Select the correct answer.
    13·1 answer
  • Oil companies can refine a barrel of petroleum so that it yields either more home heating oil or more gasoline. if the price of
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!