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inessss [21]
3 years ago
15

Tony's marginal income tax rate is 24%, and he pays FICA tax on his entire salary (7.65%). Tony's employer offered him a choice

between $5,000 additional salary or a nontaxable fringe benefit. Tony would have to pay $3,600 to purchase the benefit directly. Which of the following statements is true? (answers rounded to the nearest whole dollar)A. The fringe benefit and the additional salary have the same after-tax value.B. The fringe benefit is worth $83 more than the additional salary.C. The additional salary is worth $300 more than the fringe benefit.D. None of the above is true.
Business
1 answer:
Vlad [161]3 years ago
8 0

Answer: The fringe benefit is worth $182 more than the additional salary.

Explanation:

The Fringe benefit is valued at $3,600.

The additional salary after taxes is:

= 5,000 - (5,000 * 24%) - (5,000 * 7.65%)

= 5,000 - 1,200 - 382.5

= $3,418

The Fringe benefit is worth more than the salary by:

= 3,600 - 3,418

= $182

<em>Options are more probably for a variant of this question. </em>

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Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that throu
Brilliant_brown [7]

Answer:

a. The amount of dollars will the cash management system free up is $10,220,000

b. The income will be of $1,022,000

Explanation:

a. According to the given data in order to calculate the amount of dollars will the cash management system free up we would have to make the following calculation:

Freed-up fund = $3,200,000 * 3 + $1,240,000 * 1/2

Freed-up fund = $10,220,000

The amount of dollars will the cash management system free up is $10,220,000

b. To calculate the income If Neon Light Company can earn 10 percent per annum on freed-up funds we would have to make the following calculation:

Interest on freed-up cash = $10,220,000 * 10%

Interest on freed-up cash=$1,022,000

The income will be of $1,022,000

7 0
3 years ago
On average, companies that create plans have larger profits and grow much faster than companies that don't. true false
Murrr4er [49]
False - because not every business plans work
3 0
3 years ago
A company has a "bring your own device" (BYOD) policy for computers; anyone can just go out and buy whatever computer they want.
brilliants [131]

Answer:

<em>I can see there are no choices.</em>

Purchase or Lease Stage

Explanation:

The "Hardware Lifecycle" has several stages or phases. These are:<em> Plan, Purchase or Lease, Deploy & Install, Maintenance, Upgrade, Parts & Repair, Extend, Buyback or Trade In and Dispose or Recyle.</em>

The situation above is part of the<em> "Purchase or Lease Stage."</em> This stage <u>allows the person to buy the computer that they wanted.</u> When it comes to the IT hardware, the person can either "Buy" or "Lease." One may choose the second option if he is not yet ready to buy.

So, this explains the answer.

5 0
3 years ago
Huggins Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 830 2 1,150 3 1,410 4 1,550 I
Rasek [7]

Answer:

$4,013.10.

$3,329.54.

Explanation:

If discount rate is 8%

PV of Cash Flows :

($830 / 1.08^1) + ($1,150 / 1.08^2) + ($1,410 / 1.08^3) + ($1,550 / 1.08^4)

$768.52 + $985.94 + $1,119.30 + $1,139.30

$4,013.10

If discount rate is 16%

PV of Cash Flows :

($830 / 1.16^1) + ($1,150 / 1.16^2) + ($1,410 / 1.16^3) + ($1,550 / 1.16^4)

$715.52 + $854.64 + $903.33 + $856.05

$3,329.54.

7 0
3 years ago
In the language of macroeconomics, investment refers to Select one: a. saving. b. the purchase of new capital. c. the purchase o
N76 [4]

Answer:

The correct answer is letter "B": the purchase of new capital.

Explanation:

In macroeconomics, an investment is a capital that has been acquired with the intention that it will produce income or interest over time. Popular investments include <em>stocks, bonds, real estate, mutual funds </em>and<em>, </em>to a lesser degree<em>, commodities, annuities, and options. </em>

Many investments trade on the open market every day. Global events and company results will cause the price of the investment to rise or fall.

4 0
3 years ago
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