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3 years ago

Under FICA only, cash tips of more than $100 in a month are defined as taxable wages.

Business

1 answer:

Kazeer [188]3 years ago

5 0

Answer:

Option b: False

Explanation:

FICA is simply known as Federal Insurance Contributions Act. It is the act under which this tax is also deducted from the paycheck.The FICA tax rates and taxable wage bases are exactly the same for employees and employers.

Government uses FICA tax to provide

an income check to people at retirement age,health care, another service and others. It it a body that has its own rules, regulations and default in any of them may lead to penalty.

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July 31: during july, ps music provided guest disc jockeys for kxmd for a total of 115 hours. the contract requires ps music to

Cloud [144]

Answer:

The journal entries to record service revenue during July should be:

Dr Cash 3,600

Cr Service revenue (80 hours per month) 3,600

Dr Accounts receivable [(115 - 80 hours) x $40] 1,400

Cr Service revenue 1,400

Since the company has collected only the regular hours provided according to the contract, the remaining hours should be recorded as accounts receivable.

5 0

3 years ago

Norris Co. has developed an improved version of its most popular product. To get this improvement to the market, will cost $48 m

Lorico [155]

Answer:

$1.0725 Million

Explanation:

So now

Net Present Value = Annuity value of the even cash inflow - Investment

Here

Investment is $48 Million

Annuity Value of $13.5 Million Cash Inflow = $13.5 Million * Annuity factor for 5 years at 11.66%

Annuity factor = (1 - (1 + r)^ -n) / r

Here

r is 11.66% (Step1) and n is 5 years

Annuity Factor = (1 - (1 + 11.66%)^-5) / 11.66%

Annuity Factor = 3.635

By putting values in the above equation, we have:

Net Present Value = $13.5 Million * 3.635 - $48 Million

NPV = $1.0725 Million

Step1: Find r which Weighted average cost of capital (WACC)

Weighted Average Cost of capital

= Value of Debt / (V of debt + V of equity) * After tax cost of debt PLUS

(Value of equity (Value of Debt / (V of debt + V of equity) * cost of equity

Here

Post tax cost of debt = Pre tax cost of debt * (1 + Tax rate)

Post tax cost of debt = 9% * (1- 30%) = 6.3%

The debt to equity ratio is 25% which means equity is 100% and debt is 25%.

Value of debt is 25%

value of equity is 100%

and total value of capital structure is 125%

This means

WACC = (25% / 125% * 6.3%) + (100% / 125% * 13%)

= 1.26% + 10.4% = 11.66%

3 0

3 years ago

When converting net income to net cash provided (used) by operating activities under the indirect method increases in accounts r

Maurinko [17]

Answer:

Decrease in inventory and increases in accrued liabilities are added.

Explanation:

8 0

3 years ago

Throughout the course of your life, you have converted some of your cash on hand to certificates of deposit and bonds. You also

Serjik [45]

Answer:

intangible property

Explanation:

Intangible property can be defied as property that doesn't have any physical attributes that give them value. For example, a car is a tangible since you can drive it around, but a certificate of deposit is just a piece of paper (or even a computer code) and nothing else. The same applies to bonds and stocks, you know they are valuable but their value is not provided by their physical characteristics.

Other intangible property include patents, software, licenses, copyrights and trademarks. All of these can be extremely expensive, for example Microsoft is worth hundreds of billions and it sells digital ones and zeros.

4 0

3 years ago

Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 1

Hitman42 [59]

Answer:

124.38%

Explanation:

capacity utilization rate is the rate at which productive capacity or output is being utilized. It is denoted by the equation:

Capacity utilization = [actual output/ potential output] %

= (45,400/365) %

=124.38%

8 0

3 years ago