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2 years ago

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

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Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches

shutvik [7]

Answer:

Fixed Overheads Spending Variance = $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = $20,000 Favorable (F).

Explanation:

Fixed Overheads Spending Variance = Actual Fixed Overheads - Budgeted Fixed Overheads

= $305,000 - $300,000

= $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = Fixed Overheads at Actual Production - Budgeted Fixed Overheads

= ($5.00 × 64,000) - $300,000

= $320,000 - $300,000

= $20,000 Favorable (F)

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3 years ago

Predatory pricing refers to a. All of the above are examples of predatory pricing. b. a firm selling certain products together r

mina [271]

Answer:

d. a monopoly firm reducing its price in an attempt to maintain its monopoly.

Explanation:

In a competitive system, a firm practices predatory pricing when it charges prices below its costs in order to eliminate competitors. When the prevailing system is a monopoly, the firm is the only company providing the good and it can practice predatory pricing in the short term to prevent a competitor from entering the market. Thus the firm remains monopolistic.

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3 years ago

Rahm's credit card issuer calculates interest based on the outstanding

Llana [10]

Answer:

Adjusted balance method.

Explanation:

Adjusted balance method is defined a method of calculating financial interest based on the outstanding balance at the end of the last billing period after the payments after all necessary adjustment to the account has been made.

This method of interest calculating leads to a reduced finance charge with time as payments are being made to offset and reduce the balance on the card

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3 years ago

Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (37,000 uni

inn [45]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Total Per Unit Sales (37,000 units at $6) $ 222,000

Variable expenses 111,000 ($3.00)

Contribution margin 111,000 ($ 3.00)

Fixed expenses 41,000

Net operating income $ 70,000

1) sales increase by 12%

Income= contribution margin* 1.12 - fixed expenses= 111,000*1.12 - 41,000= 83,320

2) selling price decreases by $1.30 per unit and the number of units sold increased by 19%.

Income= (37000*1.19)*(4.7-3) - 41,000= 33,851

3) the selling price increases by $1.30 per unit, fixed expenses increase by $6,000, and the number of units sold decreased by 7%

Income= (37000*0.93)*(7.30-3) - 47000= $100,963

4) the selling price per unit increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreased by 13%

Income= (37000*0.87)*(7.2-3.2) - 41000= $87,760

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3 years ago

It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, ope

Hoochie [10]

Answer:

D) The supply of the output from the hydroelectric power plants to increase

Explanation:

The externality here is a negative one where the hydroelectric plants has to bear the cost of pollution as the paper mills operates.

Correcting means to make the paper mills pay for the external costs of their production and compensate the power plant for the additional cost that incurred as they have to clean up the water.

As the cost of production reduces, the power plant will be more willing to supply electricity at similar prices, ie. their supply curve will shift to the right. It will intersect with the demand curve of the consumers at a point with higher quantity (and maybe lower price)

In other words, they will supply more electricity.

3 0

3 years ago