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Shalnov [3]
4 years ago
12

Jay Corporation owns several automobile dealerships. This year, the corporation initiated a policy of giving the top salesperson

at each dealership a free vacation trip to Florida. The president believe that this is an effective sales incentive. The cost of the vacation is deductible by the corporation as compensation paid to employees and is taxable to the recipients. Nevertheless, the president objects to reporting the value of the vacation as income on the W-2’s of the recipients and to withholding taxes from wages for the value of the trips. He feels that this undermines the effectiveness of the incentive. What are the implications of this behavior for the corporation and the president?
Business
1 answer:
morpeh [17]4 years ago
4 0

Answer: The Implications of this behavior to the corporation  would be detrimental to their operations because as an institution they are not declaring their expenses on staff-(Vacation) from being entered into

the financial books for proper accounting purposes.

While the behavior of the MD shows that he has been praticising sharp practices with the company resources for  a while and he should be ask to step down.

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Stock A has an expected return of 14% and a standard deviation of 35%. Stock B has an expected return of 20% and a standard devi
Fiesta28 [93]

Answer:

The expected return from a portfolio consisting of 25% of stock A and 75% of stock B is 18.5%

Explanation:

Return on portfolio=Return of security A *Weight of security A+Return of security B *Weight of security B  

Return of security A=14%

Return of security B=20%

Weight of security A=25%

Weight of security B=75%

Return on portfolio  =  14 % ∗  25 /100  +  20%  ∗  75 /100

Return on portfolio  =  <u>18.5 %</u>

6 0
3 years ago
Why does investing in human capital make sense both on broad economic and individual scale?
Bingel [31]
Investing in human capital make sense both on broad economic and individual scale, because capital consists of anything that can enhance a person's power to perform economically useful work. Human capital is the capital <span>possessed by individuals and groups. like talents, knowledge, experience, wisdom...Possessing this kind of capital will result in individual success but also in broad economic, because with bigger human capital the person is able to achieve better results and to earn more, so at the end the person can spend more. </span>
8 0
3 years ago
Using the high-low method, what is the variable cost? $2 per direct labor-hour $2.31 per direct labor-hour $.30 per direct labor
d1i1m1o1n [39]

Answer:

$0.30 per direct labor-hour

Explanation:

The computation of the variable cost per direct labor is shown below:

Variable cost per direct  hour = (High maintenance cost incurred - low maintenance cost incurred) ÷ (High direct labor hours - low direct labor hours)

= ($4,000 - $1,900) ÷ (9,000 hours - 2,000 hours)

= $2,100 ÷ 7,000 hours

= $0.30 per direct labor-hour

3 0
3 years ago
How does the nurse manager or leader play a role in the reengineering of health care?
Leno4ka [110]
The leader or nurse manager can be of help in terms of re-engineering or structuring of health care is by leading the staffs in ways where it could be of the betterment of the health care facility and to suffice the needs of the patients. They will set examples and lead their group in doing what is must and provide the care in which patients require and need.
7 0
4 years ago
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match
slega [8]

Answer and Explanation:

The matching is as follows:

1. Dividends = A. Stockholders' Equity

2. Prepaid Insurance = D. Assets

3. Unearned Rent = E. Liabilities

4. Fees Earned = B. Revenue

5. Patents = D. Assets

In this way it should be matched

Like the dividend is come under equity so it is shown under stockholder equity

likewise it is applied for the other items

6 0
3 years ago
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