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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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Salutations!

What is unemployment insurance fund?

Unemployment insurance fund is a short term holiday, or consolation where workers do not work due to personal issues, such as: illness, family cases etc.

Hope I helped :D
3 0
3 years ago
Mark is considering opening a money market account. What is an issue that he needs to be aware of when comparing a money market
Anna11 [10]
The right answer for the question that is being asked and shown above is that: "C) Mark will not be able to write checks from a money market account, which will encourage him to save money." This an issue that he needs to be aware of when comparing a money market account to a checking <span>account</span>
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3 years ago
Which of the following most accurately describes one of the powers of stockholders? A. Stockholders manage the daily business of
Tems11 [23]

Answer:

C. Stockholders are given discounts on the company's products.

Explanation:

The powers of stockholders are to be given discounts on the company's products.

7 0
3 years ago
Read 2 more answers
a company incurred the following costs: Selling and administrative expenses: $45,000; Direct materials: $15,000; income tax expe
Aloiza [94]

Answer:

Cost of good manufactured= $50000

Explanation:

Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.

Generally accepted accounting principles require that the cost of goods sold shall consist of:

the cost of direct materials

the cost of direct labor

the cost of manufacturing overhead

<u>Expenses that are outside of the manufacturing facilities, such as selling, general and administrative expenses, are not product costs. </u>They are reported as expenses on the income statement in the accounting period in which they occur.

In this exercise:

<u>Cost of goods manufactured:</u>

Direct materials= $15000

Direct Labor=$30000

Factory overhead=$5000

Total= $50000

4 0
3 years ago
Acheron Co.'s December 31, Year 1, balance sheet contained the following items in the long-term liabilities section: Unsecured 5
Butoxors [25]

Answer:

Term bond $725,000

Debenture bonds $775,000

Explanation:

Calculation to determine the total amounts of term bonds and debenture bonds

TERM BONDS

6.5% unsecured convertible bonds of $225,000

Add 4.875% guaranty secured bonds of $500,000

TOTAL term bond total $725,000

($225,000+$500,00

DEBENTURE BONDS

5.375% registered bonds of $550,000

Add 6.5% convertible bonds of $225,000,

TOTAL Debenture bonds $775,000

($550,000+$225,000)

Therefore the total amounts of term bonds will be $725,000 and debenture bonds will be $775,000

4 0
3 years ago
Read 2 more answers
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