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3 years ago

Explain the difference between the common misconception people have about tax brackets and how they actually work

Business

1 answer:

svetoff [14.1K]3 years ago

5 0

Answer:

Tax brackets misconception is that it defines how much tax will be paid by an individual but this is not true. It only determines the rate of tax which will be applied to the individual for his income.

Explanation:

The tax bracket is determined for an individual based on his salary. After the computation of taxable income tax brackets are selected and rate is applied which ever tax bracket falls correctly. The tax rate applied to the taxable incomes gives the tax amount which is to be paid by an individual.

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If a company has a required rate of return of 15%, should the following project be accepted based on these expected cash flows b

Citrus2011 [14]

Answer:

Yes

Explanation:

In order for deciding whether the company should forward or not, we have to find out the net present value which is shown below:

Year Cash flows Discount factor Present value

0 -274000 1 -274000

1 68000 0.8696 59130.43

2 73000 0.7561 55198.49

3 76500 0.6575 50299.99

4 78000 0.5718 44596.75

5 82500 0.4972 41017.08

6 77000 0.4323 33289.22

Total present value 283531.97

Net present value 9531.97

Since the net present value comes in positive so the project should be accpeted

8 0

3 years ago

What was the weighted average interest rate Colgate faced on its short-term borrowings in 2013? Enter with 1 decimal place and w

statuscvo [17]

Answer:

The weighted average interest rate that Colgate faced on its short-term borrowings in 2013 was:

2.2%.

Explanation:

On page 62 of its 10-K annual report for the fiscal year ended December 31, 2013, it specifically reported that "the weighted-average interest rate on short-term borrowings of $13 in 2013 and $54 in 2012 included in Notes and loans payable in the Consolidated Balance Sheets as of December 31, 2013 and 2012 was 2.2% and 1.0%, respectively." To calculate the weighted-average interest rate, we multiply each loan amount by its interest rate to obtain the "per loan weight factor." Then add the per loan weight factors together. Add the loan amounts together. Divide the "total per loan weight factor" by the "total loan amount," and then multiply by 100 to calculate the weighted average.

6 0

3 years ago

What are the typical fees banks charge?

baherus [9]

What are the typical fees banks charge?

7 0

3 years ago

Read 2 more answers

What two ingredients provide the structure in conventional baked goods?

Natalija [7]

The answer is wheat flour and gluten.

5 0

3 years ago

Crystal's Performance Pizza is a small restaurant in Denver that sells gluten-free pizzas. Crystal's very tiny kitchen has barel

galben [10]

Answer:

Components of creation that can be differed with yield delivered are alluded to as factor elements of creation.

Elements of creation that can't be differed with yield delivered are alluded to as fixed elements of creation.

In given case, stove and laborers are utilized in pizza creation.

It has been given that in short-run, number of stoves can't be changed however number of laborers can be changed.

Along these lines,

In short-run, these laborers are variable information sources, and the stoves are fixed data sources.

Number of Workers: 0

Output (Pizzas): 0

Marginal Product of Labor (Pizzas): 0

Number of Workers: 1

Output (Pizzas): 70

Marginal Product of Labor (Pizzas): 70

Number of Workers: 2

Output (Pizzas): 120

Marginal Product of Labor (Pizzas): 50

Number of Workers: 3

Output (Pizzas): 160

Marginal Product of Labor (Pizzas): 40

Number of Workers: 4

Output (Pizzas): 190

Marginal Product of Labor (Pizzas): 30

Number of Workers: 5

Output (Pizzas): 200

Marginal Product of Labor (Pizzas): 10

3 0

3 years ago