Answer:
The increase in his tax liability is $1,120
Explanation:
STCL due to sale of stock = $8,000
LTCG due to sale of stock = $5,000
∴Net STCL = $8,000 - $5,000
Net STCL = $3,000
LTCG on sale of antique clock = $7,000
∴Net LTCG on sale of antique = $7,000 - $3,000 = $4,000
LTCG on sale of antiques is taxed at the rate of 28%
∴ Tax liability = $4,000 * 28%
Tax liability = $4,000 * 0.28
Tax liability = $1,120
Answer:
D. None of the above are true.
Explanation:
As while recording depreciation, the total assets is decreased and the stockholder equity is also decreased as depreciation is a contra asset account
In the side of stockholder equity, the net income, the retained earning and the stockholder equity is decreased
whereas, the total asset is decreased as the amount of asset is reduced by deducting the accumulated depreciation amount
The journal entry is shown below for better understanding
Depreciation Expense A/c XXXXX
To Accumulated Depreciation XXXXX
(Being depreciation expense is recorded)
Gross income is the total amount of income before any deductions.
In this case, you would add Edna's salary, commission, and earned interest.
For adjusted gross income, you would subtract payment to retirement and withdrawal from the GROSS INCOME you calculated previously
Answer:
a. How long will the current bridge system work before a new bracing system is required?: 64.18 years or 64 years and 2 months.
b. What if the annual traffic rate increases at 8 % annually: The bracing system will last for 24.65 years or 24 years and 7 months.
c. At what traffic increase rate will the current system last only 12 years: 17.13%
Explanation:
a. Denote x is the time taken for the number of pedestrian to grow from 300 to 2000. The current pedestrian is 300, the grow rate per year is 3% or 1.03 times a year. Thus, to reach 2,000, we have the equation: 300 x 1.03^x = 2000. Show the equate, we have 1.03^x = 6.67 <=> x = 64.18
b. Denote x is the time taken for the number of pedestrian to grow from 300 to 2000. The current pedestrian is 300, the grow rate per year is 8% or 1.08 times a year. Thus, to reach 2,000, we have the equation: 300 x 1.08^x = 2000. Show the equate, we have 1.08^x = 6.67 <=> x = 24.65.
c. Denote x as traffic increase rate. The current pedestrian is 300, the grow rate per year is (1+x) times a year. Thus, to reach 2,000 after 12 years and thus a new bracing system to be in place, we have the equation: 300 x (1+x)^12 = 2000. Show the equate, we have (1+x)^12 = 6.67 <=> 1+x = 1.1713 <=> x = 17.13%.
