Answer:
A) taxable as ordinary income to the employee and can be taken as a deduction by the employer.
Explanation:
When an employee defers to receive the compensation plan he gets the benefit of lower tax bracket each year, ultimately decreasing his tax liability.
Further when he receives the complete amount his income stands taxable. Accordingly at that time ordinary tax rates as per FICA are applicable.
On the employers part it is only deductible when the employee includes it in the income of the year, and pays tax on such compensation received.
Thus, when he receives it as compensation on retirement it is normally taxable at ordinary rates to the employee and deduction can be claimed by the employer.
Answer:
D. determine any gaps between the skill sets of an employee and the level of skills required for the job position
Answer:
a.
Relevant costs:
Supplies costs
Inspection costs
Assembly costs
Irrelevant cost:
power cost
b.$20,000
Explanation:
The following costs are relevant because they would be incurred as a result of investing in either of the two alternatives:
Supplies costs
Inspection costs
Assembly costs
Power costs is not relevant because is not incurred as direct consequence of the two alternatives,even when none of the alternatives is chosen power cost would still be incurred.
Costs of alternative M=$77,000+$49,000+$42,000+$168000
Costs of alternative N=$68,000+$49,000+$31,000=$148,000
Differential cost=$168,000-$148,000=$20,000
