Answer:
The answer is: B) FICA taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will eventually remit the amounts withheld to the appropriate taxing authority.
Explanation:
FICA taxes (or payroll taxes) are based on an employee's salary. Both employees and employer pay FICA taxes for Social Security and Medicare. Employers withhold these taxes from their employees' paychecks, and then pays them to the Internal Revenue Service (IRS).
The coupons paid by municipal bonds are exempt from federal income tax and from state tax in many states. Therefore, the higher the tax bracket that the investor is in, the more valuable the tax-exempt feature to the investor.
Answer:
guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk
Explanation:
Given that the purpose of Tax planning is to ensure that there is tax efficiency for the firm, in an after-tax evaluation, the goal of the firm in terms of returns or profits is toll achieved.
Hence, in this case, the correct answer to the question is that TAX PLANNING "guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk."
Answer:
Alice should exercise the option and pay $100,000 for the land.
Explanation:
As Alice has paid $20,000 for the option to acquire the land of ten acres.
In 1985, the worth of land was $120,000 but in 1992, the worth changed to $110,000. She should exercise the option because the inflation rate is the reason in the decrease in the worth of land. By buying the land, she can utilize the land by investing in it instead of holding the money as it will depreciate. By investing the money, she will get the profit and will increase in her wealth. Moreover, she can use other options by selling to another person after adding some value to the land and can get the profit.
