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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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The city wants to pave the road in front of Sam Smith's house. Sam has 110 front feet. The cost to pave is $35 a linear foot and
Anna71 [15]

Answer:

$1,443.75

Explanation:

The total cost for paving Sam's portion of the road = $35 per linear foot x 110 front feet =  $3,850

If the city is going to pay 25% of the total cost, then it will pay $962.50, that would leave a total of $2,887.50 to be paid between Sam and his front neighbor. So Sam's share = $2,887.50 / 2 = $1,443.75

4 0
2 years ago
Bradley Company purchased a machine for $34,000 on January 1, 2017. It depreciates the machine using the straight-line method ov
Debora [2.8K]

Answer:

$12,500

Explanation:

Depreciation Expense = (Book Value of machine - Residual Value)/Useful Life

                                    = ($34,000 - $2,000)/8

                                    = $4,000 per year

Depreciation Expense for years 2017 & 2018 would be $4,000 X 2 = $8,000

Net book Value on January 1, 2019 = $34,000 - $8,000 = $26,000

New Residual Value = $1,000

New Useful Life = 8 - 2 - 4 = 2 Years

Depreciation expense for 2019 = ($26,000 - $1,000)/2 = $12,500

3 0
3 years ago
A customers calls her broker to discuss her account. The broker recommends that the customer buy 500 shares of DEF stock. The cu
KIM [24]

Answer:

A. <u>Market Order</u>

Explanation:

In a market order, the securities are bought and sold immediately at the current market price prevailing at that time of the day.

Under this, order size is entered such as quantity of stock, the action to be taken i.e buy or sell and no buying/selling rate is mentioned, rather "market" option is checked.

Such market price keeps fluctuating every every moment so the order would be completed at that price which prevailed at that exact moment.

In the given case, the broker upon instructions of the client immediately got the order executed of 500 shares in less than a minute. This is the case of market order wherein the order was executed at current market price.

3 0
3 years ago
When prices drop below the point where supply and demand meet, it results in... A. coordination. B. disequilibrium. C. equilibri
xxMikexx [17]
Disequilibrium as demands are not met
5 0
3 years ago
Read 2 more answers
Which of the following is the least effective way to reach a potential sales prospect?
Vilka [71]

Answer: Direct mail

Explanation:

What’s the best way to reach a prospect? Send a letter and follow it up with a phone call. Next best is a referral. Then comes a cold call, then a personal visit. Least effective is a direct-mail piece.

4 0
3 years ago
Read 2 more answers
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