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dezoksy [38]
2 years ago
15

a. As far as the tax code is concerned, HeadBook will increase its expenses by $5,000 in either case. If it pays for the policy,

it incurs a $5,000 health care expense. If it raises Vanessa’s salary by $5,000, it incurs $5,000 of salary expense. If HeadBook is profitable and pays corporate profit taxes at a marginal 35 percent rate, by how much will HeadBook’s tax liability be reduced in either case?
Business
1 answer:
polet [3.4K]2 years ago
8 0

Answer: $1,750

Explanation:

Incurring a health insurance cost of $5,000 or increasing salaries by $5,000 will have the same effect on the taxes because they will both be removed from the income before the taxes are calculated.

The reduction in tax in either case is:

= Expense * Tax rate

= 5,000 * 35%

= $1,750

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XYZ produces a single product and has provided the following data for its most recent month of operations:
Blababa [14]

Answer: $197

Explanation:

With absorption costing, the fixed manufacturing costs are absorbed by the products which means that the product cost will include fixed costs related to manufacturing.

The absorption costing unit product cost is therefore:

= Direct materials + Direct Labor + Variable manufacturing overhead + Fixed manufacturing Overhead per unit

Fixed manufacturing overhead per unit is:

= 224,000 / 6,400 units

= $35 per unit

Absorption cost unit product cost = 72 + 80 + 10 + 35

= $197

8 0
2 years ago
What are products that consumers demand less of when their income rises
8090 [49]

Answer:

what are products that consumers demand less of when their income rises

Products that consumers demand less when their income rises are referred to as inferior goods

Explanation:

It is a natural phenomenon in economics that when there is an income rise from the consumers end, it changes their taste for a higher one which makes demand for some goods less and tagged them as being inferior

3 0
2 years ago
Read 2 more answers
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the res
vladimir1956 [14]

Answer:

a) 12.23%

b)  12.94%

c) 14th month payment interest = $157.33

   14th month principal =  $369.50

d)  18th month payment interest = $142.04

    18th month payment interest = $384.79

e) 22nd month payment interest = $126.12

   22nd month payment interest = $400.71

Explanation:

price of truck = $15000

down payment = $1000

Loan amount = $14,000

assume monthly interest rate = r%

Loan amount after 1 year will be = 14000 * (1+r%)12

next we will determine the annuity factor = [  (1/r)-[(1/r)*(1/ (1+r)t)] ]

r = periodic interest rate , t = number of payments

monthly loan payment = $14000*(1+r%)12 / [  (1/r)-[(1/r)*(1/ (1+r)36)] ]

hence r = 1.019%

a) nominal interest rate

=  1.019% *12 = 12.23%

b) effective interest rate

= (1+1.019%)^12 -1 = 12.94%

attached below is the Amortization schedule

c) 14th month payment interest = $157.33

    14th month principal =  $369.50

d) 18th month payment interest = $142.04

    18th month payment interest = $384.79

e) 22nd month payment interest = $126.12

   22nd month payment interest = $400.71

3 0
2 years ago
"Dream, Inc., has debt outstanding with a face value of $4 million. The value of the firm if it were entirely financed by equity
Artist 52 [7]

Answer:

expected bankruptcy costs =  $190000

Explanation:

given data

face value = $4 million

equity = $18.6 million

stock outstanding = 510000 shares

sell price = $31 per share

corporate tax rate = 35 percent

to find out

decrease in the value of the company due to expected bankruptcy costs

solution

we get here value of levered firmed by M & M proportion

value of levered firm = value of equity + value of debit

value of levered firm = $18.6 million + 35% ( $4 million)

value of levered firm = $20 million

and

now we get total market value of firm that is

total market value of firm = market value of equity + market value of debit

total market value of firm = $31 ( 510000 ) +  $4 million

total market value of firm = $19810000

so expected bankruptcy costs are here as

expected bankruptcy costs =  $20 million - $19810000

expected bankruptcy costs =  $190000

7 0
3 years ago
A text only forum accessed through a bulletin board service (BBS) is known as a ____.
Vinvika [58]

Answer:

its B don't listen to stupid people

Explanation:

8 0
3 years ago
Read 2 more answers
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