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ElenaW [278]
2 years ago
8

A sole proprietor in the 37% tax bracket pays her 16-year-old son a reasonable salary of $14,000 for services performed for the

proprietorship. Compute the family's income tax savings if the son has no other income and takes a $12,400 standard deduction.
Business
1 answer:
Daniel [21]2 years ago
3 0

Answer: $5020

Explanation:

The family's income tax savings if the son has no other income and takes a $12,400 standard deduction will be calculated as:

Explanation:

Tax savings from deduction = ($14,000 × 37%) = $5180

Less: Tax on child's taxable income = 10% × ($14,000 - $12,400) = 10% × $1600 = $160

Family's income tax savings = $5180 - $160 = $5020

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Serga [27]

Annual inflationary loss of buying power is a valid criticism of the use of money as a store of value in modern economies.

Explanation:

As a result of a highly inflationary reduction in the buying ability of an economy, significant negative economic impacts emerge, particularly rising costs of consumer goods and services, with high-interest rates impacting global markets and lower ratings.

The buying power is the buyer's dollar value of credit to purchase additional stocks and bonds on the retirement account against the already marginal securities. Capacity can also be recognised as the purchasing power of the dollar.

8 0
3 years ago
Which best describes the relationship between total utility and marginal utility?.
Whitepunk [10]

Answer:

While total utility measures the aggregate satisfaction an individual receives from the consumption of a specific quantity of a good or service, marginal utility is the satisfaction an individual receives from consuming one additional unit of a good or service.

8 0
2 years ago
A wool​ suit, discounted by 60 % for a clearance​ sale, has a price tag of $ 620. What was the​ suit's original​ price?
never [62]

Answer:

$1,550

Explanation:

Given that

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= $620 ÷ (1 - 0.60)

= $620 ÷ 0.40

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6 0
2 years ago
How does communication aids to trade​
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Answer:

Aids to trade communication

<u><em>Aids to trade includes Transport, Communication, Warehousing, Banking, Insurance, Advertising, Salesmanship, Mercantile agents.</em></u>

Trade promotion organizations in a country and Global organizations for international trade. These important auxiliaries ensure a smooth flow of goods from producers to the consumers.

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7 0
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