Jill Jackets has a marginal tax rate of 27%. The amount pretax income needed to pay $3 in dividends is Mom's Place had income so far in 2020 of $133,900 and owes $28,000 in taxes. Mom's has the opportunity to sell 2,000 items of Mom's Place to a new client at $11 per item. Mom's will have to pay an additional $6,000 in taxes if the sale comes through. Rounded to 2 decimal places, Mom's marginal tax rate is _-----

Jill Jackets has a marginal tax rate of 27%. The amount pretax income needed to pay $3 in dividends is Mom's Place had income so far in 2020 of $133,900 and owes $28,000 in taxes. Mom's has the opportunity to sell 2,000 items of Mom's Place to a new client at $11 per item. Mom's will have to pay an additional $6,000 in taxes if the sale comes through. Rounded to 2 decimal places, Mom's marginal tax rate is _-----

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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You make the following monthly payments. Your total net income (net of taxes) is $4,000. Calculate your savings ratio. Rent $600 Entertainment $300 Car payment $253 $500 Credit card payment $100 $450 Utilities $200 Gasoline $185 Groceries $250 Retirement savings $150 Student loan payment $300 O 17.80%. O 16.18%. O 29.05%. O 29.48%. You spend Save for Later Health insurance Taxes Submit An:
Laura wants to buy a delivery truck. The truck costs $114,000 , and will allow her to increase her after tax profits by $17,000 per year for the next 10 years. She will borrow 99% of the cost of the truck for 10 years, at an interest rate of 6%. Laura’s unlevered cost of capital is 15% and her tax rate is 22%. The loan includes a $2,000 application fee. What is the NPV of buying the truck on these terms?
The Jacksons want to buy a condo in Langley. This will be their first property. Their combined gross annual salary is $108,000. They estimate that the property taxes are $2,400/year, strata fees $200/month and heating costs average $50/month. Banks use the affordability rule: no more than 32% of gross monthly hosehold income can go tawards paying the mortgage, property taxes, heating costs and 50% of the condo fees. What is the maximum monthly mortgage payment they could afford? Your Answer: Answer
Laura wants to buy a delivery truck. The truck costs $59,000, and will allow her to increase her after tax profits by $33,000 per year for the next 10 years. She will borrow 98% of the cost of the truck for 10 years, at an interest rate of 6%. Laura's unlevered cost of capital is 11% and her tax rate is 39%. The loan includes a $2,000 application fee. What is the NPV of buying the truck on these terms? Please use the APV method.
You bought a 5-year property class equipment for $20,000.00 and sold it after 3 years. Assume that the selling price of the equipment decreases uniformly by 5% each year. The equipment generated following income: $5,000, $5,500, and $4,500 in years 1 through 3, respectively. 5. Fill up the table below to show the after tax cash flow. Assume that you are already in the 28% income tax bracket. Use MACRS depreciation. Assume that depreciation recapture/loss is taxed at 15%. After tax cash flow Yr. Income Depreciation Таxable Income Income Тах b) Write down the equation to determine the after tax rate of return. DO NOT compute the rate of return.
Using the Train act shown below, how much annual tax will be paid by a salesman who earns a basic salary of Php. 450,000.00 per year plus a commission of 20% if he sold over Php. 30,000? Assuming the salesman was able to sell Php. 50,000 regularly per month. He has a total deduction of Php. 70,000 per year. What is his monthly tax deduction?
Suppose you buy lunch for $17.00 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax? (Do not round intermediate calculations. Round the answers to 2 decimal places.) $15.74 for lunch and $1.26 for sales tax. $17.00 for lunch and $1.36 for sales tax. $17.00 for lunch and $1.26 for sales tax. $15.64 for lunch and $1.36 for sales tax.
Cody Sebastian, of Lubbock, Texas, earns $56,000 a year. He pays 12 percent of his gross income in federal, state, and local taxes. He has fixed expenses in addition to taxes of $1,600 per month and variable expenses that average $1,400 per month. What is his net cash flow (surplus or deficit) for the year? Enter negative values with minus sign. Round your answer to the nearest dollar.
Art Neuner, an investor in real estate, bought an office condominium. The market value of the condo was $280,000 with a 80% assessment rate. Art feels that his return should be 10% per month on his investment after all expenses. The tax rate is $32.50 per $1,000. Art estimates it will cost $275 per month to cover general repairs, insurance, and so on. He pays a $140 condo fee per month. All utilities and heat are the responsibility of the tenant. Calculate the monthly rent for Art.
Your employer asks you to consult on the better approach to a decision. What should the corporation pay for an asset that will return them $150,000 at the end of year 1, then zero in year 2, then $400,000 in years 3 & 4, then zero in year 5, then $200,000 in years 6-10, assuming their discount rate is 3% (ignoring taxes) ?
To be sure that you understand how to use the tables in Appendix A at the end of this book, solve the following exercises. Ignore income tax considerations. The correct answers, rounded to the nearest dollar, appear on page 855. Q. You have just won $50,000. How much money will you accumulate at the end of 5 years if you invest it at 6% compounded annually? At 12%?
The accountant for Eastern Appliances manages the “no money down” arrangements offered to its customers. A customer purchased a refrigerator normally priced at $1,284.53 with all taxes included. Using a required rate of return of 9% compounded quarterly, the accountant determined that, after a deferral period, the customer should make 12 monthly payments of $119.16, with the first payment due on November 1, 2020. On what date was the refrigerator purchased?