C is the correct answer because it really varies depending on the game.
Answer:
Calculate the tax consequence of withdrawal from retirement account.
T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.
Analysis
They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.
Calculation of tax consequences if withdrawal amount is $2,100:
Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.
= $2100 × 35%
= $735
The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.
= $2100 × 10%
= $210
(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)
Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:
Total expenses =$735 + $210
Total expenses = $945
Conclusion
Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.
When there is no government involvement in answering the three basic economic questions this is Market Economy.
Market
<u>Explanation:</u>
When there is no government interventions in the market system or economy then it is known as Market Economy or Lassez faire.
Here the firms and household determine who sells the goods and who buys it and everything is carried out according to them and there is no government intervention like that of the command economy.
There is a lot of profit for the businessman as the consumers pay as high the price as they want to and no amount is given to the government.
Answer: $313,247
Explanation:
Independent lease cost :
Production department = $410,000
Finishing department = $360,000
Joint lease cost = $(410,000 + 360,000) - $100,000 = $670,000
Using the standard alone cost allocation method ;
Finishing department percentage is given by;
Finishing department independent cost ÷ (finishing department independent cost + production department independent cost)
$360,000 ÷ ($360,000 + $410,000)
$360,000 ÷ $770,000
0.4675324467 = 46.75324467%
Therefore, finishing department share of the joint lease cost will be ;
0.4675324467 × $670,000 = $313,246. 73
$313,247
