Suppose your principal investment is $1800 and you have a nominal interest rate of 6.5%. what is your nominal interest income? Presume you are taxed at the 22% tax rate, who much will you pay in taxes and what is your after tax nominal income? Presume inflation was 2.7% during the year, what is the loss of principal due to inflation? What is your real interest income? What is after-tax real interest income?

Q: 2020 2021 Cost of Goods sold 55,000 58.000 Cost of Goods sold 450,000 440,000 Net Sales 550,000…

A: On the gross profit, there is no charge of tax on it. It is calculated on the net profit earned by…

Q: If the annual interest rate is 9% and inflation rate is 5%. What does the tax rate have to be in…

A: Real rate of return=1+annual interest rate1+Inflation rate-1=1.091.05-1=3.8%

Q: How much is the income tax expense/(benefit) for the fourth quarter?

A: Income tax expense/(benefit) for the fourth quarter = (34,000)

Q: Your best taxable investment opportunity has an EAR of 4.9%. Your best tax-free investment…

A:

Q: income if you save $170 per pay period after pa Net Pay & Spendable Income Net pay Spendable income

A: Net pay per pay period can be calculated by deducting tax from gross pay per pay period Spendable…

Q: Suppose your annual income is $29182 and there are two tax brackets: 10% for $0-$20,000 and 30% for…

A: Tax amount is the amount of tax obligation that an entity has to pay on its income to the government…

Q: Assume that the nominal after-tax net return for year 1: $45, year 2: $47, year 3: $49. The after…

A: Present value refers to the current value of the investments that is computed by discounting the…

Q: What is the amount of Taxes Owed for the period if the tax rate is 30%, if Earnings Before Taxes (…

A: Taxes are the amount due to the government on the income earned by an individual or a company. The…

Q: How much is the income tax expense/(benefit) for the third quarter? (NOTE: If your answer is an…

A: Formula: Income tax expense amount = Net income x Tax rate

Q: Suppose you earn $60,000 per year and pay taxes based on marginal tax rates. The first tax bracket,…

A: Given: First tax bracket: 5% for $0 to $30,000. Second tax bracket: 20% for $30,001 to $120,000.

Q: Consider the following income statement for WatchoverU Savings Inc. (in millions): (LG 19-1)…

A: Net interest income is the variation between the interest revenue gaining assets and interest…

Q: With a 28% marginal tax rate, would a tax free yield of 7%  or taxable yeild of 9.5% give you a…

A: Hence, effective yield of 9.5% taxable yield is 6.84%.The effective yield of 9.5% taxable yield is…

Q: A saving account earns a nominal rate i(©) = 0.06. If the income tax of the earnings from this…

A: The amount that is being received by an individual today has more value than receiving the exact…

Q: Comparing Taxable and Tax-Free Yields.  With a 28 percent marginal tax rate, would a tax-free yield…

A: We need to compare the after tax yield of taxable instrument with the yield of tax free instrument.…

Q: ate:   a. the marginal tax rate   b. the average tax rate   c. the effective tax rate.…

A: Gross income is nothing but, all income for the year, including wages, tips, earnings from…

Q: ution to such a

A: Given contribution as, $5,000 to $3,000 per year.

Q: 4.An individual made $85,000 for the year. Using the tax  given , answer the following questions:…

A: A.) Marginal tax rate is the highest bracket rate an individual's taxable income falls into i.e. the…

Q: Consider a tax system where the first $40,000 of income is tax free, the next $40,000 is taxed at…

A: Here discuss about the details of average tax rate, marginal tax rate and taxes which are involved…

Q: COMPARITIVE for years ended 31 December INCOME STATEMENT *Sales revenue *Interest revenue…

A: Note: The amount of Total expenses and losses given in Question is 321,195 but in actually the total…

Q: Choose a,b,c,d,e for the following: Question 1 - Debt x Interest Rate x Tax Rate: a. gives us the…

A: The amount of interest is computed:

Q: In step 2 how did you get the excess income tax of 19,520.00?

A: Excess income tax is the amount of income tax which has been previously paid in excess if the…

Q: suppose that the first $ 5000 income earned is not taxed at all, the next $ 10000 earned is taxed at…

A: Marginal tax is calculated by multiplying the tax rate with the income.

Q: With a 28 percent marginal tax rate, would a tax-free yield of 7 percent or a taxable yield of 11.0…

A: Tax free yield = 7%Taxable yield =11%Tax rate = 28%

Q: Entity A has identified indications that its plant is impaired. The plant has a carrying amount of…

A: Revaluation means the determination of the value of assets again on the basis of current market…

Q: Your best taxable investment opportunity has an EAR of 4%. You best tax-free investment opportunity…

A: Calculation of After-tax Interest Rate:The aftertax interest rate is 2.80%.

Q: If an after-tax rate of return = 10% is required and the Effective tax rate is 35%. What is the…

A: The MARR before tax is calculated by dividing the after-tax rate of return by the difference of 1…

Q: If you have a taxable income of $369,770.00, what is your top marginal tax rate? total tax bill? S…

A: 2023 US federal tax rates are used for single filers.Average tax rate = Total tax paid / Taxable…