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pychu [463]
4 years ago
5

Shaun bought 390 shares of Dental Equipment Inc. several years ago for $11,300. Currently the stock is worth $9,400. Shaun’s mar

ginal tax rate this year is 24 percent, and he has no other capital gains or losses. Shaun expects to have a marginal rate of 32 percent next year, but he also expects to have a long-term capital gain of $11,300. To minimize taxes, should Shaun sell the stock on December 31 of this year or January 1 of next year (ignore the time value of money)? (Use the dividends and capital gains tax rates and tax rate schedules.)
Business
1 answer:
Finger [1]4 years ago
6 0

Answer:

January 1 of next year

Explanation:

Selling now will make the entire gain taxable to his incoe tax bracket

While the long-term captial gain have a different rate.

As 2019 the current brackets for long-term capital gaisn are:

0% $         0 to $   39,375

15% $39,376 to $434,550

20% $434,551 or more

As Shaun gain is less than 39,375 it will be subject to no taxation thus, paying no taxes.

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Tax laws permit installment sales, which are recognized in the year of sale for financial reporting purposes, to be reported in
Lera25 [3.4K]

Answer:

lower; higher.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The different types of tax include the following;

1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.

3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.

Generally, installment sales are permitted or allowed by the tax laws in a country. Typically, they are recognized in the year of sale for the purpose of financial reporting. Also, installment sales for any goods or services are to be reported in the tax return, at a later time when cash is received from the customer (buyer).

This results in a deferred tax liability because taxable income is lower than financial income in the year of sale, and higher than financial income in later years when collected.

7 0
3 years ago
community hospital in a rual community operates the ambulance service. the hospital purchases a new ambulance for $150,000. they
lisov135 [29]

Answer:

$150,000×20,000=3.000.000.000

Explanation:

3.000.000.000÷10=300.000.000 years

5 0
3 years ago
Megan is concerned about the performance of one of her teammates on a project. Which of the following is an example of effective
cupoosta [38]

Answer:

Explanation:

I think it is d

It is the only non degrading answer

8 0
3 years ago
Read 2 more answers
Is It important to follow directions from supervisors even when you disagree with them
kiruha [24]
Yes because they have more experience than you so they have better judgement
5 0
4 years ago
Jane's Donut Co. borrowed $198,000 on January 1, 2021, and signed a two-year note bearing interest at 11%. Interest is payable i
spayn [35]

Answer:

$21,780

Explanation:

Calculation to determine what Jane's should report interest expense at December 31, 2021, in the amount of:

Interest expense at December 31, 2021=$198,000 x 11% x 12/12

Interest expense at December 31, 2021= $21,780

Therefore Jane's should report interest expense at December 31, 2021, in the amount of: $21,780

7 0
3 years ago
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