The sole proprietor of the "Books and Children" bookstore receives all accounting profits earned by her firmand a $28,000-a-year salary she pays herself. She has a standing salary offer of $35,000 a year if sheagrees to work for a large corporation. If she had invested her capital outside her own company, sheestimates that would have returned $22,000 a year. Last year, her accounting profit was $50,000.a.Calculate her implicit cost.b. Calculate her economic profit.

The objective of this question is to calculate the implicit cost and the economic profit for the…

Answered: The sole proprietor of the "Books and…

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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Jennifer recently earned a degree in accounting and her first employment opportunity is an accountant at a major corporation. The 401(k) portion of her employment package has a personal investment cap at 20% of her salary and the employer contribution portion is 50% of her contribution. Her annual salary is $56,500 and she chose to invest 14% annually. FUTURE VALUE of $1 Periods 8 9 10 11 3% 1.267 1.305 1.344 1.384 4% 1.369 1.423 1.480 1.539 FUTURE VALUE of ANNUITY of $1 Periods 8 9 10 11 3% 8.892 10.159 11.464 12.808 4% 9.214 10.583 12.006 13.486 Required: Calculate the value of her 401(k) after 10 years at 4%, and then calculate the value of her 401(k) had she invested the maximum amount that her employer would match.
subject:accounting
Employee has worked for Employers incorporated business for several years at a salary of 80K per year. Another company is attempting to hire Employee, but Employer persuades Employee to agree to stay for at least 2 more years by giving Employee 2% of the company’s stock, which is worth $100K, and by giving Employees spouse a new car worth $30K. How much income does Employee realize from these transactions?
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Jennifer Buffett is a 33-year-old recent MBA graduate. She has been working since she was 18 and has seen her annual salary grow from $20,000 to $90,000 gross, over the span of 15 years. She rents an apartment and does not own any real estate. Her monthly living expenses are $4,000, including her $200 per month car payment and $700 per month student loan payment. She has no other debt and has savings totaling $50,000. She plans to get married next year and start a family of two children. She works as a marketing manager in a medium-size cosmetics company in Texas. What is Jennifer’s expected risk tolerance? Please, clearly characterize her risk tolerance and justify your response. What is Jennifer’s expected return requirements? Please justify. What possible constraints might Jennifer have for her investment decision? Please justify your response.
Ac Please answer fast
A young engineer earned $85,000 in wages and other income in the last tax year. She is unmarried and from company records knows that $13,000 has been withheld for taxes. If she had $8000 in charitable donations last year, calculate if she will receive a refund or owe taxes.
Sonia, an executive of Ang Probinsyano Promotions, earned in 2018 P1,200,000 compensation income, inclusive of 13th month pay and other benefits amounting to P190,000. Aside from her employment, she owns a farm, with gross sales of P3,000,000. His cost of sales and operating expenses are P900,000 and P450,500 respectively, and with non-operating income of P200,000. Compute for the Taxable Income in her employment. _____________________________ Compute for the Taxable Income in her business. _________________________________ Compute for the Total Income Tax Payable/ Tax Due: _____________________________ Compute for the Total Income Tax Payable/ Tax Due if she signify her intention to be taxed at 8% Optional Gross Receipts Tax. _____________________________
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