Fundamental Managerial Accounting Concepts
Fundamental Managerial Accounting Concepts
8th Edition
ISBN: 9781259569197
Author: Thomas P Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip R Olds
Publisher: McGraw-Hill Education
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Chapter 12, Problem 8ESB
To determine

Ascertain the contract price for Job.

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Meg works for Freedom Airlines in the accounts payable department. Meg and all other employees receive free flight benefits (for the employee, family, and 10 free buddy passes for friends per year) as part of its employee benefits package. If Meg uses 15 flights with a value of $6,975 this year, how much must she include in her compensation this year? Amount included
Seiko's current salary is $101,000. Her marginal tax rate is 32 percent, and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for Idaho Office Supply. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays $84,600 per year, but it allows employees to purchase one new car per year at a discount of $19,400. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply offers her a $10,500 raise. Answer the following questions about this analysis. a. What is the annual after-tax cost to Idaho Office Supply if it provides Seiko with the $10,500 increase in salary? Note: Ignore payroll taxes. After-tax cost
Required information [The following information applies to the questions displayed below.] Nicole's employer, Poe Corporation, provides her with an automobile allowance of $42,000 every other year. Her marginal tax rate is 32 percent. Answer the following questions relating to this fringe benefit. b. What is Poe's after-tax cost of providing the auto allowance? > Answer is complete but not entirely correct. After-tax cost $ 28,560

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Fundamental Managerial Accounting Concepts

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