3-50. Extensions of the CVP Model-Multiple ProductsSell Block prepares three types of simple tax returns: individual, partnerships, and (small) corpora-tions, The tax returns have the following characteristics:IndividualsPartnerships CorporationsPrice charged per tax returnVarlabie cost per tax return (includingwage pald to tax preparer)....Expected tax returns prepared per year ..$200$1,000$2,000$18060,000$9004,000$1,80016,000The total fixed costs per year for the company are $3,690,000.RequiredWhat is the anticipated level of profits for the expected sales volumes?a Assuming that the product mix is the same at the break-even point, compute the break-evenpoint.Suppose the product sales mix changes so that, for every ten tax returns prepared, six are forindividuals, one is for a partnership, and three are for corporations. Now what is the break-even volume for Sell Block?

Calculation of anticipated level of profits for expected sales volume Individuals…

Answered: 3-50. Extensions of the CVP…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Parent consolidated group reports the following results for the tax year. Entity Income or Loss Parent $180,000 Sub1 ($19,000) Sub2 ($38,000) Sub3 $62,000 If an amount is zero, enter "0". If required, round any division to two decimal places and use rounded amounts in subsequent computations. Round your final answers to the nearest dollar. a. Assuming a 21% tax rate, what is the group's consolidated taxable income and consolidated tax liability? The consolidated taxable income is $ 185,000 If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3? Parent $___________ Sub1 $__________ Sub2 $0 Sub3 $_________ What is the Parent, Sub 1, and Sub 3?
The total or effective tax rate including federal and local taxes for most enterprises is in the range of 60 % to 80% Select one: 1)True 2)False
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Problem Information Use the following tax rates, celling and maximum taxes: Employee and Employer OASDI: 6.20% $137,700 $8,537.40 Employee and Employer HI: 1.45% No limit No maximum Self-employed OASDI: 12.4% $137,700 $17,074.80 Self-employed HI: 2.9% No limit No maximum "Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed. Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows: 1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-haif to determine the overtime rate). 2. If the third decimal place is 5 or more, round to the next higher cent. 3. If the third decimal place is less than 5, drop the third decimal place. Also, use the minimum hourty wage of $7.25 in solving these problems and all that follow. Jax Company's (a monthly depositor) tax lability (amount withheld from…
Use the following tax rates, ceiling and maximum taxes: Employee and Employer OASDI: 6.20% $137,700 $8,537.40 Employee* and Employer HI: 1.45% No limit No maximum Self-employed OASDI: 12.4% $137,700 $17,074.80 Self-employed HI: 2.9% No limit No maximum *Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed. Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows: Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate). If the third decimal place is 5 or more, round to the next higher cent. If the third decimal place is less than 5, drop the third decimal place. Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. Dee is paid $2,345 on November 8, 20--. Dee had cumulative gross earnings, including…
Pleas calculate the AVERAGE and MARGINAL TAX based on the tax bracket provided below. (Hint: every box in the table may NOT be used.) $0 $1,001 $3,001 Tax Bracket $10,001 $20,001 $40,001 $1,000 $3,000 $10,000 $20,000 $40,000 & Above Average Tax:__`17.729% Marginal Tax:__`25¹% Tax 5% 10% 15% 25% 30% 45% $ $ Taxable Income Amount Taxed type your ansv type your ansv type your ansv = type your ansv $16,500 $ $ $ $ Actual Tax Paid type your answe type your answe type your answe type your answe type your answe Amount Remaining $ $ $ $ type your answe type your answe type your answe type your answe
2-3 Computing Graduated State Income Tax Rather than a flat percentage rate, some states have what is known as a graduated income tax. This means that your state income tax is computed at a varying rate each time you reach a new income level. The higher your income, the greater your tax. Example Find the amount of state income tax deducted from each paycheck. Carla Erpelding's annual salary is $28,500. She is paid biweekly. Her personal exemptions total $1,500. The state income tax is calculated on the following graduated basis: 2.5 percent of the first $25,000 and 3.5 percent over $25,000. 1. Find the taxable wages. - ($28,500 $1,500) = $27,000 2. Find the annual tax withheld. First $25,000: = ($25,000 x .025) = $625 Over $25,000 = ($27,000-$25,000) x .035 = $2,000 x .035 = $70 Annual Tax = $625+ $70 = $695 3. Find the tax per period. Annual Tax Number of Pay Periods per Year = Tax Withheld per Pay Period $695.00 ÷ 26 = $26.73 tax per pay period Practice Using the following graduated…
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Calculate the tax liability for Andre, a single tax resident, receiving $1,000 dividend (80% franked) from a large company, called Margin Pty Ltd, which uses imputation tax system and 30% corporate tax rate. Other income and expenses of Andre are as below: Employment income $ 63,013 (excluding 16,467 PAYG withholding) Allowable Deduction of $500 Consider Medicare Levy, Medicare Levy Surcharge (if applicable), and relevant offsets.
Formula: Add, Subtract; Cell Referencing Using Excel to Determine Income Tax Effects PROBLEM At December 31, 2022 and 2023, Secor Inc. reported amounts for a deferred tax asset. Information concerning the company's income taxes is provided here. Deferred tax asset, December 31, 2022 Deferred tax asset, December 31, 2023 Current tax expense 2023 Ś 40,000 62,000 70,000 Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or to this work area. What amount should Secor report as total 2020 income tax expense? 2023 income tax expense Current Tax Expense Prepare the journal entries to record income taxes for 2020. Income Tax Payable Deferred Tax Expense $ Current Tax Expense 22,000 Debit 70,000 22,000 Credit 70,000 22,000
Chapter 3 Activity – Taxes Individual Income Tax Brackets (2021) Marginal Tax Rate Single, taxable income over: Joint, taxable income over: Head of Household, taxable income over: 10% $0 $0 $0 12% $9,950 $19,900 $14,200 22% $40,525 $81,050 $54,200 24% $86,375 $172,750 $86,350 32% $164,925 $329,850 $164,900 35% $209,425 $418,850 $209,400 37% $523,600 $628,300 $523,600 Standard Deduction Amounts (2021) Filing Status Deduction Amount Single $12,550 Married Filing Jointly $25,100 Head of Household $18,800 Long-term Capital Gains & Qualified Dividends (2021) Tax Rate Single Joint Head of Household 0% Under $40,000 Under $80,800 Under $54,100 15% $40,400 $80,800 $54,100 20% $445,850 $501,600 $473,750 Additional 3.8% Net Investment Income Tax for MAGI over $200,000 / $250,000 / $200,000 Calculate the federal income…

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