Answer:
Employer should withheld $1,643 from Baker's salary
Explanation:
Baker earned $113,300 in 2012. As on 2012, FICA tax rate withheld from employee's salary is 7.65% that constitutes 4.5% of social security, 1.45% of medicare taxes and 2% additional for employees whose wages exceed $18,350.
The gross income base for social security part has increased in 2012 to $110,100. This is not applicable for medicare tax of 1.45%.
Here, Baker's salary of $113,300 is above social security limit, so his income will not be withheld for social security. However, 1.45% of his salary will be withheld for medicare tax.
Therefore, $1,643 that is 0.0145×113,300 is withheld from his salary.
Answer:
11.21%
Explanation:
the opportunity cost of capital can be determined by calculating the weighted average cost of capital
WACC = [weight of equity x cost of equity[ + [weight of debt x cost of debt x (1 - tax rate)] + [weight of preferred stock x cost of preferred stock]
0.3 x 10.76 + (0.5 x 13.91) + (0.2 x 0.65 x 7,87)
3.228 + 6.955 + 1.231
11.21%
Answer:
A. Buyback
Explanation:
The exit strategy that provides the entrepreneur an opportunity to purchase back venture capital stock at cost and an additional premium is a Buyback
A buyback is when an entrepreneur buys its own shares in the stock market. It is a repurchase and minimizes/decreases the number of shares outstanding, which causes earnings per share to be inflated and, in many cases, the stock value also.
Answer:
E) None of the above
Explanation:
In partnership, the partners earn profit. The salary allowances are considered as though paid to a third party and are considered before arriving at the net income.
As such, given that net income is $30,000 and is to be shared in the ratio 80:20 between Gary and Elaine respectively.
Elaine's share = (20/100) × $30,000
= $6,000
Answer:
The corret answer is b. decrease assets and decrease liabilities.
Explanation:
First entry
Earnings Accrued (- Net Equity)
to various creditors (+ Liabilities)
Since the minutes of the assembly must indicate that they are taken from the profits of previous years, the accumulated profits are reduced.
Second entry
Miscellaneous creditors (- Liabilities)
to Banks (- Active)
The first entry represents transfer from one liability to another liability. Although we think that capital accounts are not liabilities, it is not true, given that the value of debt to shareholders of the value of your company, so we can group everything in the same bag.
When decreeing dividends, what is done is to cover a small part of that company value. That is, when dividends are decreed, they become part of a formalized liability.
The second entry is the cancellation of the liability, through one of the ways to extinguish the obligations: payment.
