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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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In a _______, the tenant pays not only the rent for occupancy, but also pays maintenance and operating expenses such as taxes, i
shutvik [7]

Answer: Triple net lease or NNN lease or net-net-net lease

Explanation:

Single Net Lease also called net lease or N lease: This is a type of lease in which the tenant pays for tax in addition to the payment of rent of occupancy which makes the landlord responsible for other expenses such as insurance and utilities.

Double Net Lease or net-net lease or NN lease: The tenant pays for tax and insurance expenses in addition to the rent of occupancy. The landlord is responsible for the other expenses.

Triple Net Leases or net-net-net lease or NNN lease: This is a type of lease in which the tenant pays forthe rent of occupancy and other expenses such as tax, insurance, utilities and repairs which leaves the landlord to charge lower rent.

The triple net Lease answers your question

7 0
3 years ago
Which of the following is a valid reason for governmental entities to engage in business-type activities?(A) The entity does not
Orlov [11]

Answer: Option D

     

Explanation: The prime objective of every government in the world is to develop their nation and make the life of their population better. The living standard of the population heavily depends on the basic necessities of life.

Therefore, sometimes government engage in business activities to provide individuals certain commodities at subsidized prices. Most of the government entities do not work for profit thus they are able to provide commodities cheaper than private sector.

Hence, from the above explanation we can conclude that option D is correct.

5 0
3 years ago
The local wendy's franchise is a good corporate citizen, and the owners of that particular franchise had fostered relationships
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8 0
2 years ago
Having a good credit score is important because
zvonat [6]
It shows you're trustworthy and banks will be more willing to loan you money
5 0
2 years ago
Read 2 more answers
Ramos Company has the following unit costs: Variable manufacturing overhead$15 Direct materials 13 Direct labor 17 Fixed manufac
zhannawk [14.2K]

Answer:

Unitary cost= $56

Explanation:

Giving the following information:

Variable manufacturing overhead $15

Direct materials $13

Direct labor $17

Fixed manufacturing overhead $12

Fixed marketing and administrative $11

Under absorption costing, the fixed overhead is allocated to the product cost:

Unitary cost= direct material + direct labor + variable overhead + fixed overhead

Unitary cost= 13 + 17 + 15 + 11= $56

3 0
2 years ago
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