Answer:
True
Explanation:
Gross wage is the pay before adjusting for taxes and other deductions. The term gross means before deductions. For example, when calculating profits, gross profits means the earnings before deducting expenses.
Net wages contrast gross wages. While gross wages do not include deductions, net wages is the income after adjusting for all deductions. Calculating the gross wage will include involves adding basic pay and other earnings such as commissions, allowances, and bonuses.
Your monthly benefit will be lower
Answer and Explanation:
The computation of the depreciation expense using straight line method is shown below:
Formula to be used:
= (Purchase cost - salvage value) ÷ (estimated service life)
For 2021
= ($35,000 - $5,000) ÷ (10 years)
= $3,000
For 4 months, it would be
= $3,000 × 4 months ÷ 12 months
= $1,000
And, for the year 2021, it would be the same i.e. $3,000
Answer:
Bob Katz and Sally Mander
Taxable Income for 2018:
= $78,200
Explanation:
a) Data and Calculations:
Total wages = $102,400
Gain from sale of stock = 5,200
Interest income = 100
Total income = $107,700
less total deductions = (29,500)
Taxable Income = $78,200
b) Bob Katz and Sally Mander will have taxable income of $78,200 when the appropriate rate of tax is applied and the tax liability obtained, then the $1,500 tax credit will be deducted before arriving at the tax liability due.
c) The short-term capital gain of $5,200 is taxed as ordinary income. Since it is held for less than a year, it will be included in the taxable income for that year and it follows the same tax brackets as ordinary income. On the other hand, the long-term capital gain of $13,000 will attract a tax rate of 0 percent for a taxable income of $78,200. Otherwise, it will attract a tax rate of 15 percent or 20 percent, depending on income level. This means that long-term capital gains tax rates are much lower than the ordinary income tax rate.
Answer:
The accumulated present value is $67,518.99.
Explanation:
Investment opportunities that require a series of payments of a fixed amount for a specific number of periods are known as annuities.
The Present Value of this annuity can be calculated as :
Fv = $0
n = 30
r = 4.2 %
Pmt = - $4,000
P/ yr = 1
Pv = ?
Using a financial calculator, the Present Value (PV) of the annuity is $67,518.9948 or $67,518.99.
