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Sav [38]
3 years ago
9

1 points Time Remaining 1 hour 14 minutes 35 seconds01:14:35 eBookPrintReferencesCheck my workCheck My Work button is now enable

dItem 13 Time Remaining 1 hour 14 minutes 35 seconds01:14:35 Alice is single and self-employed in 2020. Her net business profit on her Schedule C for the year is $196,000. What is her self-employment tax liability and additional Medicare tax liability for 2020
Business
1 answer:
AnnZ [28]3 years ago
4 0

Answer:

  • Self employment tax liability = $‭22,323.97
  • Additional Medicare tax liability = $0

Explanation:

According to the IRS, the amount subject to self-employment tax is 92.35% of net income from self-employment for the year.

Alice's taxable income is:

= 92.35% * 196,000

= $181,006

Self employment tax-liability:

Social security tax for 2020 is 12.4% for the first $137,700 of income.

= 12.4% * 137,700

= $17,074.80

Medicare tax:

= 2.9% on taxable income

= 2.9% * 181,006

= $‭5,249.17

Self-employment tax is:

= 17,074.80 + 5,249.17

= $‭22,323.97

<em>Additional Medicare tax applies on only amounts above $200,000 so it is $0 in this case. </em>

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mamaluj [8]

Answer:

Revenue could be of amount $33,836,000

Explanation:

As the selling price is not given in the question, only the cost of the inventory is given, So,

We assume that the Sales quantity is X and the Selling Price per unit be Y

Then,

Sales = X × Y                              ............... Equation (1)

Less : COSG = $33,836,000     ................ Equation (2)

Net Income = 1 - 2

If the selling price is equal to the cost of the inventory which is $33,836,000. So, the only revenue which is to be added is the amount of $33,836,000.

Note: It totally depend or grounded on the Sales value.

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3 years ago
A firm is weighing three capacity alternatives: small, medium, and large job shop. Whatever capacity choice is made, the market
Dvinal [7]

Answer:

<u>Since expected payoff for large job shop option is highest, firm should make large job shop option as capacity choice</u>

Explanation:

Expected payoff of any capacity alternative

= Probability of moderate acceptance x Payoff of moderate acceptance + Probability of strong acceptance x Payoff of strong acceptance

= 0.40 x Payoff of moderate acceptance + 0.60 x Pay off of strong acceptance

Thus Pay off for small job shop option

= 0.40 x 24000 + 0.6 x 54000

= 9600 + 32400

= $42,000

Pay off for medium job shop option

= 0.40 x 20000 + 0.60 x 64000

= 8000 + 38400

= $ 46,400

Pay off for large job shop option

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= $56,800

7 0
3 years ago
The concept of right-sizing euphemistically refers to ________.
notsponge [240]
Right-sizing is a euphemism for downsizing, firing, and is synonymous with reorganizing business. It is usually intended to cut costs of a company by firing people, but it is usually presented as a beneficial and a good thing.
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3 years ago
Explain how government actions affect a circular flow model of a mixed economy.
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A circular flow economy includes buying and selling between businesses, households, and governments.

The government takes money in through taxes and tariffs, and has expenditures on things like roads, military spending, and other federally funded programs. In this way the government both gives and takes in the economy.

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3 years ago
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua
Alecsey [184]

Answer:

€928.46

Explanation:

Since it was hinted that bonds issued outside of  the United States pay coupons annually, it is expected that the bonds issued in Germany pay annual coupons, and its price is computed below using the bond price formula, excel PV function, and financial calculator:

Bond price=face value/(1+r)^n+annual coupon*(1-(1+r)^-n/r

face value=€1,000

r=yield to maturity=8.7%

n=number of annual coupons in 10 years=10

annual coupon=face value*coupon rate=€1,000*7.6%=€76

bond price=1000/(1+8.7%)^10+76*(1-(1+8.7%)^-10/8.7%

bond price=1000/(1.087)^10+76*(1-(1.087)^-10/0.087

bond price=1000/2.30300797+76*(1-0.43421474)/0.087

bond price=1000/2.30300797+76*0.56578526/0.087

bond price= 434.21+494.25= €928.46

Excel PV function:

=-pv(rate,nper,pmt,fv)

=-pv(8.7%,10,76,1000)

pv=€928.46

Financial calculator:

N=10

PMT=76

I/Y=8.7

FV=1000

CPT PV=€928.46

4 0
3 years ago
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