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kumpel [21]
2 years ago
5

Tonya, who lives in California, inherited a $100,000 State of California bond in 2020. Her marginal Federal tax rate is 35%, and

her marginal state tax rate is 5%. The California bond pays 3.3% interest, which is not subject to California income tax. She can purchase a corporate bond of comparable risk that will yield 5.2% or a U.S. government bond that pays 4.6% interest. What is the after-tax income from each bond
Business
1 answer:
soldi70 [24.7K]2 years ago
3 0

Answer: See explanation

Explanation:

The after-tax income from each bond is given below:

• California bond

This will be calculated as the inherited amount of California bond multiplied by the interest rate

= $100,000 × 3.30%

= $100,000 × 0.033

After tax interest revenue = $3300

Note that there are no deduction for Federal income, and California tax here.

• Corporate bond.

Inherited amount of corporate bond = $100,000

Multiply: Interest rate = 5.20%

Before tax interest revenue = ($100,000 × 5.20%) = $5,200

Less: Federal income tax = ($5,200 × 35%) = ($1,820)

Less: California tax = $5,200 × 5% = $260

Less: Federal tax benefit = ($260 × 35%) = $91

After tax interest revenue = $3,211

• U.S Government bond

Inherited amount of U.S. government bond = $100,000

Multiply: Interest rate = 4.60%

Before tax interest revenue = $4,600

Less: Federal income tax = $4,600 × 35% = $1,610

Less: California tax = $0

Less: Federal tax benefit on the state income tax paid = $0

After tax interest revenue = $4600 - $1610 = $2,990

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You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a ve
Murljashka [212]

Answer:

1) You should go home and watch TV.

Explanation:

Since you value seeing the play $10, then you should leave the theater and go to your house to watch TV since that has a higher value for you ($12).

We are talking about opportunity costs here. Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another. In this case the opportunity costs are:

  • watch the play = $10
  • watch TV = $12
  • read a book = $8

Since watching TV is more valuable to you, then that is what you should be doing.  

3 0
2 years ago
What proposed changes were made to boost the chinese economy that caused mao to launch the oppressive cultural revolution? choos
klasskru [66]

The changes that were proposed to made to improve the Chinese economy that caused Mao to launch the oppressive Cultural Revolution are-

  • It allows workers to compete for wages
  • It prosecutes government officials
  • It allows farmers to sell excess crops

<h3>What is Cultural Revolution?</h3>

The start of the Cultural Revolution by Mao Zedong As Mao attempted to regain control by mobilizing radical youngsters against the Communist Party leadership, the campaign was fundamentally about upper economics.

These help workers compete for their wages for the work they did. It gives farmers to sell their excess crops and prosecutes the government officials.

Learn more about Cultural Revolution, here:

brainly.com/question/10693549

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6 0
1 year ago
Edith Carolina is president of the Deed Corporation. The company is decentralized, and leaves investment decisions up to the dis
Softa [21]

Answer:

Check the explanation

Explanation:

In this case option A is the correct option, i.e. Carolina will accept the new cosmetic line but Sanders will reject the new cosmetic line. This is because Carolina being the president of Deed Corporation would like to take the cosmetic line differently and with the expected rate of return of 12%, i.e. higher than the minimum required rate of return of 8%.

However, Sanders has achieved a 14% rate of return from his cosmetic division thus, being the manger he would not like his performance to go down with 12% return from the new cosmetic line. Thus, option A is the correct option.  

8 0
3 years ago
Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs
pychu [463]

Answer:

Increase in income= $2,965.6

Explanation:

Giving the following information:

Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is:

Materials $ 12,036

Labor 35,400

Variable overhead 23,128

Fixed overhead 47,200

Total $117,764

McGee Corporation offers Gruden $4.91 per disc for 4,930 discs. If Gruden accepts the offer, its fixed overhead will increase from $47,200 to $53,700 due to the purchase of a new imprinting machine.

Total variable cost= (12,036 + 35,400 + 23,128)= 70,564

Unitary variable cost= 70,564/23,600= $2.99

Increase in fixed costs= $6,500

Increase in income= (4930*4.91) - (4930*2.99) - 6500= $2,965.6

8 0
2 years ago
Suppose only two countries existed in the world. Country A imported $200 million worth of goods and services from Country B. Cou
tigry1 [53]

Answer:

C. Country A equals –$100 million.

Explanation:

Imports from Country B to Country A = $200 million

Imports from Country A to Country B = $100 million

Imports for one country represents exports to another.

Net exports is the difference between exports and import for a country.

Net exports for country A = $100 million - $200 million = - $100 million

Net exports for country B = $200 million - $100 million = $100 million

Right option is C. Country A equals –$100 million. Country's A export is less than it's import.

6 0
3 years ago
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