Answer:
The statement is false
Explanation:
S corporations are pass through corporations, which means income earned is passed to the owners and they are taxed at individual level.
Shareholders of S corporation earns income in the form of wages and distributions. Wages are charged with payroll taxes. S corporation shareholders are not subject to self-employment taxes which is an advantage for them.
Therefore, the statement is false
Answer:
The answer is B
Explanation:
The answer is B. Put option writer/seller. Put option writer has a right but not the obligation to sell an asset at a specified price while put option buyer is the reverse
Option A is wrong. Call option buyer/holder has the right but not the obligation to buy an asset at a specified price while call option writer/seller is the reverse.
Answer: 6250
Explanation:
From the question, we are informed that Santiago company incurs annual fixed costs of $66,000. variable costs for santiago's product are $34 per unit, and the sales price is $50 per unit. santiago desires to earn an annual profit of $34,000.
The contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit for thus:
Contribution margin ratio = (Sales price - Variable cost)/Sales price
= (50-34)/50
= 16/50
= 0.32
Sales = (66,000 + 34,000)/0.32
= 100,000/0.32
= 312,500
Sales volume in units will be sales divided by price. This will be:
= 312,500/50
= 6250
Answer:
$149,000
Explanation:
Computation for the relevant costs of producing 2,400 units of product PQ107 internally
Using this formula
Relevant Costs = Incremental Costs = Incremental Variable Costs + Incremental
Let plug in the formula
Relevant Costs = [(2,400 units × $31/unit) + (2,400 units × $19/unit) + (2,400 units × $8/unit)] + $9,800
Relevant Costs=$74,400+$45,600+$19,200+$9,800
Relevant Cost =$149,000
Therefore the relevant costs of producing 2,400 units of product PQ107 internally are $149,000
Interest rate and years of repayment
