A firm pays $22,000,000 in compensation to its 401K participants in 2021.  What is the maximum tax-deferred contribution the firm can make in 2021?

Q: What is the payback if the investment is $22,000 and the after tax benefits are: Years 1 & 2 =…

A: Investment amount = $ 22,000

Q: Assume that you begin saving 3% of your total income in an employer-provided retirement plan at…

A: The savings of the employee are increasing by fix rate of 2% each year, while the income is…

Q: United Airline recorded a record $15 billion loss due to the pandemic and dramatic decline in air…

A: Per TCJA, NOL 's for tax years may be carryforward indefinitely but may be deducted only upto 80% of…

Q: The ABC Company has contracted to make the following payments: 500,000 immediately; 50,000 at the…

A: Year  Cash flow  PV 8% Present value  0 500,000 1.4693 734664 1 50,000 1.3604   68024.45 2…

Q: additional amount of funds

A: The time value of money shows the amount which is more worthful now as compared to the money will…

Q: BRCC is evaluating an option for funding its working capital during the next year. The company plans…

A: in this we have to calculate the interest and add to that to get required value.

Q: Use the following information for Taco Swell, Incorporated, (assume the tax rate is 21 percent):…

A: Income and balance sheet statements:

Q: Calculate the annual tax factor benefit or savings from an annual depreciation of $20,000 if you are…

A: Annual depreciation = $ 20,000 Tax rate = 28%

Q: During 2020, Crane Inc. had sales revenue $1328000, gross profit $728000, operating expenses…

A: Income tax expense : Income tax expense is the taxes owed by the company to a taxing authority.…

Q: 129,000 annual income. Your company matches 75 percent of the first 10 percent of your earnings. You…

A: 401(K) is one of the profit sharing plan in which there is contribution from employee and also…

Q: Give typing answer with explanation and conclusion  1) Marigold Corp. will receive $35,000 today…

A: Net Present Value is also called NPV. It is depend upon future cash inflow & outflow from the…

Q: You are working as a treasurer for a Toronto-based long-term healthcare company. Your company has…

A: Excess cash = $10,000,000Overnight rate = 4.75%Days amount is deposited = 14Tax rate = 40%

Q: he Aggarwal Corporation needs to save $10 million to retire a(n) $10 million mortgage that matures…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: You just graduated and started your new job. Your starting salary is $80,000/year. Your employer's…

A: d)Time period (n) =40 yearsRate of interest (I) =8% p.aAnnual Contribution = $8000Total amount at…

Q: A company has a liability of 410,000,000 that is must pay in 26 years. If it can round up the annual…

A: Present Value Can be computed using the formula given below Present Value = 1/(1+r)^1 + 1/(1+r)^2 +…

Q: Today is December 31, 2018. The following information applies to Addison Airlines: ·      After-tax,…

A: Expected After tax operating income = 400,000,000 Expected Depreciation = 80,000,00 Expected Capital…

Q: In 2020, Uniontown Books had EBIT equal to -$950,000. In 2021, its EBIT was $2,200,000. The company…

A: The objective of the question is to calculate the tax liability of Uniontown Books for the year…

Q: Congress would like to increase tax revenues by 5 percent. Assume that the average taxpayer in the…

A: After-tax income = Pretax income × (1 − tax rate)

Q: Suppose you are a manager for a certain company. You earn $50,000 per year and are in the 28%…

A: Tax savings is the reduction in the amount of income tax that an individual or entity is required to…

Q: * Using the corporate valuation model approach, what should be the company's stock price today?…

A: The stock price is the value of an individual share of a publicly traded company. It is based on the…

Q: Your company pays 8.76% on short-term debt, 6.31% on long-term debt, and 8.66% on any additional…

A: Interest expenses are the expenses that are incurred by the company against the borrowings. Interest…

Q: For 2019, Gourmet Kitchen Products reported $21 million of sales and $17 million of operating costs…

A: Economic Value added - is one of the measures of economic profit. It is a type of value being…

Q: Johnny’s Hardware Store’s sales were $550,000 during 2019, and its year-end assets were $440,000.…

A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…

Q: Suppose you are a manager for a certain company. You earn $50,000 per year and are in the 28%…

A: A drop in the level of tax paid by a citizen, corporation, or other taxpayer is alluded to as a tax…

Q: A company had interest expense in 2019 of $325,000 and is in a 21% tax bracket. What is the after…

A: Interest expenses provides tax savings. Interest expenses are eligible for tax deduction. Given:…

Q: 5. Suppose the average Social Security benefits in the nation are $12,000 per year. The number of…

A: Dependency ratio refers to the ratio of dependents to the working-age population in a given society…

Q: Suppose you are a manager for a certain company. You earn $50,000 per year and are in the 28%…

A: (a) How much tax do you save (in $) each year by making the retirement fund contributions?The tax…

Q: For 2022, Jackie reported the following in relation to the primary income of the business…

A: A quarterly income tax return is required to be filed by individuals and corporations. The rate of…

Q: 102. Sardor has been offered an investment that will pay him $500 three years from today. If his…

A: Time value of money is a financial and economic concept that states that the value of money in…

Q: On the internet and in the news you see many articles on non-profit companies and their contribution…

A: A non-profit organization is normally treated as a normal corporate corporation, with the added…

Q: A savings account at Bank of America pays the depositor a 15% before tax return per year. If the…

A: We can calculate after tax return by using this equation After tax rate of return= before tax rate…

Q: Company XYZ in previous three years (2016,17,18) has lost $1,000,000 in each year. From 2019 and…

A: Year Profit Set off Remaining Balance   Remaining Balance 2019 1500000 Loss of 2016-1000000…

Q: In 2021, PacMan Inc. had a net operating profit after-taxes of P20,000,000 and an effective tax rate…

A: Operating expenses are those expenses which are incurred for operating the business. It does not…

Q: You are considering the tax consequences of investing $2,000 at the end of each year for 30 years in…

A: For calculation of accumulated value after 30 years , we will use formula of future value of annuity…

Q: How much tax do you save (in $) each year by making the retirement fund contributions? $ (b) Using…

A: Tax savings amount is the amount which has been saved by the taxpayer by making such types of…

Q: How much tax an owner of property will pay in a tax year 2020-2021 based on receipts of following…

A: Tax will be on house property income as per individual slab rate,provided no other income.    Tax…

Q: Your employer is now offering a matching program for employees who participate in the corporate…

A: This question is of annuity. Annuity is a series of  fixed payments/receipts paid or received at a…

Q: The company is planning to provide services to a client and receives $90,000 in year 2020. The…

A: Computation of cash flows if recorded profit in current year Profit prior to tax in current year…

Q: Suppose you are a manager for a certain company. You earn $50,000 per year and are in the 28%…

A: Future value of annuity = annuity * Table factor (r, n) Tax savings = Investment in IRA * marginal…

Q: 11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before…

A: Net income = $57000 EBIT = $160,000 Tax rate = 40%

Q: Your company sponsors a 401(k) plan into which you deposit 10 percent of your $120,000 annual…

A: 401(K) is one of the profit sharing plans in which there is a contribution from employee and also…

Q: For 2020, Electro Tech Inc. has reported earnings before interest and taxes (ebit) of $6.5 million;…

A: FREE CASH FLOW = EBIT x (1-tax) +depreciation- capex - change in working capital