Answer:
$47439.50
Explanation:
For a single tax payer if your taxable income range is $200,000 - $500,000 then your income tax is $45,689.50 + 35% of amount over $200,000 of taxable income.
Income tax liability = $45689.50+{ 205000-200000)×35%}
$45689.50+(5000×35/100)
$45689.50+(5000×0.35)
$45689.50+1750
= $47439.50
The income tax liability will be $47439.50
Answer:
No, it is a bad idea to use only the cost of debt
Explanation:
Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.
Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.
When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.
Answer:
science, technology, engineering, mathematics
Answer:
(I)
retained earnings 92,400 debit
common stock 28,600 credit
additional paid-in 63,800 credit
(II)
retained earnings 924,000 debit
common stock 286,000 credit
additional paid-in 638,000 credit
(III) no entry required
Explanation:
22,000 x 10% = 2,200 new shares
market price:
2,200 X $42 = 92,400
book value
2,200 x $13 = 28,600
additional paid-in
63,800
100% sotkc dividends:
22,000 x 100% = 22,000 new shares
market price:
22,000 X $42 = 924,000
book value
22,000 x $13 = 286,000
additional paid-in
638,000
the stock split will not change the accounting as the total value fo the equity remains the same.
Answer:
The correct option is option D which is When 2006 is chosen as the base year, the inflation rate is 50 percent in 2007.
Explanation:
For the fixed basket, the price is 2006 is given as
Basket Price =$3*10+$5*6=$30+$30=$60
Now the price of basket in 2007 is given as
Basket Price=$5.40*10+$6*6=$54+$36=$90
Now as the inflation rate is given as
Price in 2007/Price in 2006=$90/$60=1.5
this indicates that the prices have become 1.5 times or have increase 50% Thus the inflation rate is 50%
