Answer:
Explanation:
Part A
S Corp.
Description
C corp.
Description
1.
Pretax earnings
90000
(1000000*9%)
90000
(1000000*9%)
2.
Entity level tax rate
0%
21%
3.
Entity level tax
0
18900
(1) × (2)
4.
Earnings after-entity-level tax
90000
(1) – (3)
71100
(1) – (3)
5.
QBI Deduction
(18000)
(1) × 0.20
NA
6.
Net income taxable to owner
72000
(4) + (5)
71100
(4) distributed as dividend
7.
Owner level marginal tax rate
37%
23.8%
8.
Owner-level tax
26640
(6) × (7)
16922
(6) × (7)
After-tax cash flow
63360
(1) – (8)
54178
(6) – (8)
B
Owner-level tax
26640
(6) × (7)
16922
(6) × (7)
After-tax cash flow
63360
(1) – (8)
54178
(6) – (8)
Overall tax rate
29.60%
(8)/(1)
39.80%
[(3) + (10)]/(1)
Answer:
b) $11,760
Explanation:
Using the straight-line deprecition method, the annual depreciation mount for an asset is an equal amount which is equal to
Annual depreciation = Cost of the assets - Salvage value/ Expected useful life
<em>Cost of assets include the purchase price plus every other costs incurred to bring them for the intended use.</em>
<em>Cost of equipment</em> = 60,000 + 2,800 + 8,000 =70,800
<em>Annual depreciation</em> = (70,800 - 12,000)/5
= $11,760
Answer:
8.33 hours or 8 hour 20 minutes
Explanation:
A small metal shop operates 10 hours each day, producing 100 parts/hour.
If productivity were increased 20%, then the production will be 120 parts/hour
Then the number hours the plant have to work to produce 1000 parts will be 1000 units / 120 parts per hour = 8.33 hours or 8 hour 20 minutes
Answer:
1. quickly describe large amounts of data
2. the stock is worth 15% more at the end of the year than at the beginning
3. 9.2%
Explanation:
Descriptive statistics helps to quickly describe large amounts of data because it simply involves using certain measurement tools to describe the data seen such that patterns emerge that will help in analyzing the data. Examples include, frequency tables and measures of variation like range and standard deviation.
When a stock has a 15% return, it means that the owner is getting 15% more than the amount that the stock cost them therefore showing that the stock is worth 15% more at the end of the year than at the beginning.
The return on the stock is;
= (4.75 - 4.35) / 4.35
= 9.2%