Answer:
Jana just found out that she is going to receive an end-of-year bonus of $32,200. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus.
- tax liability = $32,200 x 35% = $11,270
Now assume that instead of receiving a bonus, Jana receives the $32,200 as a long-term capital gain. What will be her tax?
- tax liability = $32,200 x 15% = $4,830
Which form of compensation offers Jana the best after-tax return?
- if the bonus is taxed as a long term capital gain, she will páy less than half the taxes, so it is the best option for her
Would your calculation be different if the gain was short-term rather than long-term?
- Short term capital gains are taxed at the same rate as ordinary income, so the difference between the bonus being a long vs short term capital gain is very significant to Jana.
Answer:
Explanation:
a. Provide the journal entry for the vacation pay
Employees earned vacation pay of $39,500 for the period.
Debit Credit
Vacation pay expense A/C $39,500
Vacation payable A/C $39,500
<em>(Being vacation pay accrued for periods) </em>
b. Provide the journal entry for the pension benefit.
9% of employee salaries and the salaries were $750,000
=> The pension plan requires a contribution to the plan administrator: $750,000*9% = $67,500
Debit Credit
Pension expense $750,000
To cash A/C $67,500
To unfunded pension liabilities $683,500
Hope it will find you well.
Answer:
Annual increase is $1,108.4
Explanation:
In 2016, average price was $27,258.6
In 2010, average price was $20,608
Average increase in 6 years = $27,258.6 - $20,608 = $6,650.6
Annual average increase = $6650.6/6 = $1,108.4
Answer:
True
Explanation:
When a company successfully offers a product or few products to customers, it tends to expand the range of products it has to offer.
For a <u>company to increase its range of products successfully, it has to realize that it must make corresponding changes to its processes to accommodate the addition of new products.</u>
However <em>oftentimes, companies do not make the necessary changes to their process strategy when expanding their product offerings.</em>
