Answer: $66,150
Explanation:
The leadoff event is priced at $23 out of the $78 and the rest of the 5 events will be priced equally.
This means that after the first event, the other 5 will cumulatively be valued at;
= (78 - 23)/5
= $11
The other events are priced at $11 each.
For the first 3 events therefore;
First event = $23 and the other 2 events are $11 each;
= 23 + 11 + 11
= $45
Tickets sold are 1,470;
Revenue from first 3 = 45 * 1,470
= $66,150
. A particular parcel of real estate (land) is sold for $20,000,000 and was originally purchased for $10,000,000. On a taxable sale, explain a circumstance (type of investor, intent, entity, etc.) that would pay the following U.S. federal income tax results on the $10,000,000 gain (exclude the 3.8% net investment income tax and any state taxes in the calculation):
Question Completion:
Choices: a. No tax liability on the sale b. $2,000,000 of tax c. $2,960,000 of tax d. $2,100,000 of tax
Answer:
b. $2,000,000 of tax for individuals
Explanation:
Long-term capital gains tax is a tax on profits from the sale of an asset which an investor has held for more than a year. The approved long-term capital gains tax rates are 0%, 15% or 20% depending on your taxable income bracket and whether you are filing as a single or jointly as married. But, an important point to note is that long-term capital gains tax rates are generally lower than short-term capital gains tax rates, thus encouraging investors to hold assets for a longer time. Short-term capital gains tax rates are the rates applicable to the normal individual income tax brackets.
A company purchased an asset for $3,200,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, and 14.81 percent, respectively. What is the book value of the equipment at the end of the project
Answer:
$237,120
Explanation:
year depreciation % depreciation expense book value
1 33.33% $1,066,560 $2,133,440
2 44.45% $1,422,400 $711,040
3 14.81% $473,920 $237,120
the book value at the end of the project's life = $237,120, which is equivalent to 7.41% (the fourth year according to MACRS depreciation)
Digby's turnover rate for this year is 6.33%. This rate is projected to remain the same next year and no further downsizing will occur from automating. What would the total recruiting cost be for Digby, assuming it spends the same amount extra above the $1,000 recruiting base as they did this year?
Answer:
Total recruitment cost = $316.5
Explanation:
Note:
Given question is incomplete,
The number of employees = 5,000
Given:
Turnover rate for this year = 6.33%
Find:
Total recruitment cost
Computation:
Total recruitment cost = Turnover rate for this year × The number of employees
Total recruitment cost = 5,000 × 6.33%
Total recruitment cost = $316.5
The total recruiting cost will be $316.5 for Digby.
Given information
Assumed the number of employees is 5,000
Turnover rate for this year = 6.33%
Total recruitment cost = Turnover rate for this year * The number of employees
Total recruitment cost = 5,000 * 6.33%
Total recruitment cost = $316.5
Therefore, the total recruiting cost will be $316.5 for Digby.
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A sofa manufacturer can produce 10 sofas for $2,500 and 12 sofas for $2,760. What is the difference between the average cost per sofa for 12 sofas and the marginal cost of the 12th sofa
Answer:100
Explanation:
The following information can be gotten from the question:
Cost for 10 sofas = $2500
Cost for 12 sofas = $2760.
Average Cost = Total Cost/Quantity
2500 / 10 = $250 and
$2760 / 12 = $230
The average cost for 12 sofas will be $230
Marginal cost is the change in total cost divided by the change in quantity. This will be:
= ( 2760 - 2500 )/( 12 - 10 )
= 260/2
= 130
The difference between the average cost per sofa for 12 sofas and the marginal cost of the 12th sofa will be:
=230 - 130
= 100
Answer:
100
Explanation:
I took the question on the assignment and got it right
Morgan Company issues 10%, 20-year bonds with a par value of $760,000 that pay interest semiannually. The amount paid to the bondholders for each semiannual interest payment is.
Answer: $38,000
Explanation:
The company is supposed to pay bondholders an Interest of 10% per year according to the terms of the terms of the bond.
= 10% * 760,000
= $76,000
However, payments are to be made semi-annually which will be;
= 76,000 * 1/2
= $38,000
A new trailer worth $10,000 is purchased and it's expected that the salvage value after 13 years will be $480. If the annual interest rate is 4.20% , what equation would be appropriate to use to determine the Expected Uniform Annual Cost (EUAC)
The equation that is used to determine the Expected Uniform Annual Cost is :
[tex]$A = P(A/P, i,n) - F(A/F, i,n)$[/tex]
It is given that :
Purchased price of a new trailer = $ 10,000
Number of years = 13 years
The salvage value after 13 years = $480
The rate of interest annually = 4.20%
The Estimated Uniform Annual Cost, that is the EUAC method is used to express the life cycle costs as the annualized estimate of the cash flow rather than a lumpsum estimate of the present value.
In other words, it is the annual cost of a system which is equal or equivalent to the discounted total cost.
So the equation that can be used to express the Expected Uniform Annual Cost in the given problem is :
[tex]$A = P(A/P, i,n) - F(A/F, i,n)$[/tex]
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Delta Corporation has a higher times interest earned ratio than Gamma Corporation. From this information, we can assume that Delta is relatively better able to meet its interest payments.
a. True
b. False
Answer: True
Explanation:
The times interest earned ratio indicates how a company will be able to meet its debts obligations which is based on the current income of the company.
Since Delta Corporation has a higher times interest earned ratio than Gamma Corporation, it means that Delta is relatively better able to meet its interest payments.
Delta in its effective terms means the measurement of the rate of change in the premium whereas the gamma is meant as the measure of the movement of the risk. Delta is linked with the ranges of 0 and 1 and gamma is linked with the range of long and short-run in the market.
The correct answer is True
The time's interest earned ratio indicates how a company will be able to meet its debts obligations which are based on the current income of the company.
Since Delta Corporation has a higher times interest earned ratio than Gamma Corporation, it means that Delta is relatively better able to meet its interest payments.
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The earliest time that an activity can be completed is equal to the latest time it can begin minus the time to perform the activity. Group of answer choices True False
Answer: False
Explanation:
The earliest time of an activity os necessary in order to reduce the duration of a project. The earliest start time of an activity is the time that is earliest where an activity can begin.
The earliest finish time is the addition of the early time with the completion time of the activity.
You are given an annuity-immediate paying 10 for 10 years, then decreasing by one per year for nine years and paying one per year thereafter, forever. The annual effective rate of interest is 4%. Calculate the present value of this annuity.
Answer:
124.17
Explanation:
since the first payment is immediate, then this is an annuity due:
we must divide this annuity into 3 separate parts:
1) today plus 9 years = PV = 10 x 8.43533 (PV annuity due, 4%, 10 periods) = 84.3533
2) the second group of years where annuity decreases by $1
PV year 10 = 9/1.04¹⁰ = 6.08
PV year 11 = 8/1.04¹¹ = 5.20
PV year 12 = 7/1.04¹² = 4.37
PV year 13 = 6/1.04¹³ = 3.60
PV year 14 = 5/1.04¹⁴ = 2.89
PV year 15 = 4/1.04¹⁵ = 2.22
PV year 16 = 3/1.04¹⁶ = 1.60
PV year 17 = 2/1.04¹⁷ = 1.03
sum of PVs = 26.99
3) terminal value at year 17 = 1/0.04 = 25
PV of terminal value = 25/1.04¹⁷ = 12.83
now we add the three parts = 84.3533 + 26.99 + 12.83 = 124.17
Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume the following information for the Assembly Department:Steel per filing cabinet ............................................. 55 poundsDirect labor per filing cabinet ...................................... 20 minutesSupervisor salaries ................................................ $180,000 per monthDepreciation ...................................................... $28,000 per monthDirect labor rate................................................... $21 per hourSteel cost ......................................................... $0.40 per poundRequired:Prepare a flexible budget for 12,000, 15,000, and 18,000 filing cabinets for the month of August 2014.
Answer:
Total Flexible Budgets for 12,000, 15,000, and 18,000 units is $ 556,000 $ 643,000 and $830,000
Explanation:
Steelcase Inc.
Assembly Department:
Steel per filing cabinet ............................................. 55 pounds
Direct labor per filing cabinet ...................................... 20 minutes
Supervisor salaries ................................................ $180,000 per month
Depreciation ...................................................... $28,000 per month
Direct labor rate................................................... $21 per hour
Steel cost ......................................................... $0.40 per pound
Steelcase Inc.
Flexible budget
For the month of August 2014.
Units: 12000 15000 18000
Steel for filing cabinet 660,000 825000 990,000 pounds
Steel cost $264,000 330,000 $ 396,000
Direct labor Hrs 4,000 5,000 6,000
Direct labor Cost $84,000 $105,000 $ 126,000
Supervisor salaries $180,000 $180,000 $180,000
Depreciation $28,000 $28,000 $28,000
Total $ 556,000 $ 643,000 $830,000
First we find the Steel for filing cabinets in pounds . Then we multiply with the rate to find the steel cost.
Similarly we find the direct labor hours and then the direct labor cost.
We assume that the supervisor salaries and depreciation are fixed.
Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange for a 50 percent capital and profits interest in the partnership.
Basis Fair Market Value Harry:
Cash $30,000 $30,000
Land $100,000 $120,000
Totals $130,000 $150,000
Sally:
Equipment used in business $200,000 $150,000
Totals $200,000 $150,000
a. How much gain or loss will Harry recognize on the contribution?
b. How much gain or loss will Sally recognize on the contribution?
c. Should Sally consider selling the property to the partnership rather than contributing it?
A. Yes
B. No
Answer:
a) $0
Generally, partners recognize gain on property contributed to a partnership only when the cash they are deemed to receive from debt relief exceeds their basis in the partnership prior to the deemed distribution. Harry did not have any debt relief.
b) $0.
Partners may never recognize loss when property is contributed to a partnership even when they are relieved of debt.
c) Sally should consider selling the property to the partnership rather than contributing it. By selling the property, she could recognize the $50,000 built-in loss on the equipment.
The expected average rate of return for a proposed investment of $625,000 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $250,000 for the 5 years, is which of the following?
a.16%
b.50%
c.40%
d.18%
Answer:
C. 40%
Explanation:
Your portfolio has a beta of 1.60. The portfolio consists of 16 percent U.S. Treasury bills, 36 percent Stock A, and 48 percent Stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of Stock B?
Answer: 2.58
Explanation:
Portfolio beta of 1.60 is weighted average of all the constituent betas.
US Treasury bills are riskless so beta is 0
Stock A has market risk so beta is 1.
1.60 = (0.16 * 0) + ( 0.36 * 1) + ( 0.48 * b)
1.60 = 0.36 + 0.48b
0.48b = 1.24
b = 2.58
A stock had returns of 9.62 percent, −14.65 percent, 19.85 percent, 25.35 percent, and 7.65 percent over the past five years. What was the geometric average return for this stock?
Answer:
The geometric average return for this stock was 8.64%.
Explanation:
Geometric average return refers to the return which will result in the correct compounded dollars at the end of the time period.
Geometric average return can be computed using the following formula:
Geometric average return = {[(1 + r1)(1 + r2) ... (1 + rn)]^(1/n)} - 1 ......... (1)
Where r is returns from year 1 to year n.
For the stock in the question, we have:
r1 = 9.62%, 0.0962
r2 = -14.65%, or -0.1465
r3 = 19.85%, or 0.1985
r4 = 25.35%, or 0.2535
r5 = 7.65%, or 0.0765
n = 5
Substituting the values into equation (1), we have:
Geometric average return = {[(1 + 0.0962)(1 - 0.1465)(1 + 0.1985)(1 + 0.2535)(1 + 0.0765)]^(1/5)} - 1
Geometric average return = {1.51310732605096^0.20} - 1
Geometric average return = 0.0864, or 8.64%
Therefore, the geometric average return for this stock was 8.64%.
Consider a hypothetical closed economy in which households spend $0.65 of each additional dollar they earn and save the remaining $0.35. The marginal propensity to consume (MPC) for this economy is , and the spending multiplier for this economy is .
Answer:
Marginal propensity to consume or MPC = 0.65
Multiplier or k = 2.85714 rounded off to 2.86
Explanation:
The marginal propensity to consume (MPC) is the proportion of increased disposable income that consumers spend. It is a metric to quantify the induced consumption and how an increase in consumer spending occurs as a result of increase in income.
MPC is calculated as follows,
MPC = Change in consumer spending / change in income
MPC = 0.65 / 1
MPC = 0.65
To calculate the multiplier, we simply use the following formula,
Multiplier or k = 1 / (1 - MPC)
k = 1 / (1 - 0.65)
k = 2.85714 rounded off to 2.86
The marginal propensity to consume is a measure in economics that quantifies induced consumption, or the idea that private expenditure grows in tandem with disposable income.
The spending power is the amount of expendable cash spent on consumption by individuals.
The answers to the questions in the context are:
Marginal propensity to consume or MPC = 0.65
Multiplier or k = 2.85714 rounded off to 2.86
The proportion of extra discretionary income spent by the customer is defined as the level of consumption (MPC).
It's a statistic for measuring induced consumption, or how an increase in consumer spending occurs as a result of an increase in income.
MPC is calculated as follows,
MPC = [tex]\frac{\text{Change in consumer spending}}{\text{change in income}}[/tex]
MPC = 0.65 / 1
MPC = 0.65
To calculate the multiplier:
Multiplier or k = [tex]\frac{1}{1-MPC}[/tex]
k = [tex]\frac{1}{1-0.65}[/tex]
k = 2.85714 rounded off to 2.86
Therefore,
Marginal propensity to consume or MPC = 0.65
Multiplier or k = 2.85714 rounded off to 2.86
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Which of the following is a true statement about the limitation on business interest deductions? This limitation is not imposed on businesses with average annual gross receipts of $25 million of less for the prior three taxable years. A. Interest disallowed by this limitation is carried back three years and then forward five years B. The limitation is calculated as a percentage of the taxpayers total taxable income C. This limitation is not imposed on businesses with average annual gross receipts of $26 million or less for the prior three taxable years D. All of the choices are false E. All of the choices are true
Answer:
Limitation on Business Interest Deductions:
B. The limitation is calculated as a percentage of the taxpayers total taxable income
Explanation:
30% (or 50% for years 2019 and 2020, as amended by the CARES Act) of the adjusted taxable income of a business is the limit of business interest expense that is allowed by the IRS. The excess after this limitation may be carried forward by the tax paying organization to future tax years indefinitely until the interest expense is completely applied.
Following the CARES Act, "the business interest expense deduction limitation does not apply to certain small businesses whose gross receipts are $26 million or less, electing real property trades or businesses, electing farming businesses, and certain regulated public utilities. The $26 million gross receipts threshold, which applies for the 2020 tax year, is adjusted annually for inflation."
Assume that the firm is 40% financed by debt and 60% financed by equity. Its cost of debt is 8% and the cost of equity is 15%. The tax rate is 40%. What is the firm’s WACC?
Answer:
10.92%
Explanation:
A firm is 40% financed by debt
= 40/100
= 0.40
The firm is also 60% financed by equity
= 60/100
= 0.60
Its cost of debt is 8%
=8/100
=0.08
Cost of equity is 15%
= 15/100
= 0.15
Tax rate is 40%
= 40/100
= 0.40
Therefore, the firm's WACC can be calculated as follows
WACC= 0.40×0.08×(1-0.40) + 0.60×0.15
= 0.032×0.6 + 0.09
= 0.0192 + 0.09
= 0.1092×100
= 10.92%
Hence the firm's WACC is 10.92%
An S corporation earns per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pays a dividend?
Answer:
$2.73
Explanation:
Question is incomplete. But assuming the company earn per shares before tax is $7 and the company pays a dividend of $2
Hence, the total amount of taxes paid is = Company earn per shares * personal tax rate on non-dividend income
= $7 * 39%
= $7 * 0.39
=$2.73
A company has reported operating income of $25,000,000. The bond interest expense for the year is $4,000,000 and principal payments on bonds totaled $1,000,000. The company's debt service coverage ratio is:
Answer:
The company's debt service coverage ratio is 5.
Explanation:
The debt service coverage ratio refers to the financial ratio that give a measure of the ability of a company to meet its current debts obligation.
The debt service coverage ratio therefore compares the operating income of the company with the company's total debt service obligations.
The total service obligation includes the current interest, principal repayment, and any other debt obligations.
The formula for calculating the debt service coverage ratio is given as follows:
Debt service coverage ratio = Operating income / Total debt service costs
Form the question, we have:
Operating income = $25,000,000
Total debt service costs = Interest expense + Principal payments on bonds = $4,000,000 + $1,000,000 = $5,000,000
Substituting the values into the formula, we have:
Debt service coverage ratio = $25,000,000 / $5,000,000 = 5
Therefore, the company's debt service coverage ratio is 5.
Since this is greater than 1, this iimplies that operating profits made by the company is more than enough to pay its current debt service costs.
On December 31, 2003, Rudd Company purchased 80 percent of the common stock of Wilton Company. At the time, Rudd held land with a book value of $100,000 and a fair value of $260,000; Wilton held land with a book value of $50,000 and fair value of $600,000. At what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?
a. $540,000.
b. $590,000.
c. $700,000.
d. $860,000.
Answer:
land will be reported in a consolidated balance sheet at c. $700,000.
Explanation:
The Assets and Liabilities of Wilton Company are acquired at their Fair Value amounts instead of Book Values. Thus, the value of the land will be : $700,00 ($100,000 + $600,000).
A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
Answer:
$3,289.5
Explanation:
The computation of the amount of recorded interest expense for the first semiannual interest period is shown below:-
Amortization of premium = Premium amount ÷ Number of semi-annual periods
where
Premium amount = Par value - issue price
= $102,105 - $100,000
= $2,105
Number of semi-annual periods = 5 × 2
= 10 periods
Amortization of premium = $2,105 ÷ 10
= 210.5
Semi-annual interest expense = Face value × Coupon rate × (6 ÷ 12)
= $100,000 × 7% × (6 ÷ 12)
= $3,500
First semi-annual interest expense = $3,500 - 210.5
= $3,289.5
On January 1, 2017 , Northeast USA Transportation Company purchased a used aircraft at a cost of $ 53,200,000. Northeast USA expects the plane to remain useful for five years (6,500,000 miles) and to have a residual value of $ 5,200,000. Northeast USA expects to fly the plane 900,000 miles the first year, 1,400,000 miles each year during the second, third, and fourth years, and 1,400,000 miles the last year.
1. Compute Northeast USA's depreciation for the first two years on the plane using the straight-line method, theunits-of-production method, and the double-declining balance method.
a. Straight-line method Using the straight-line method, depreciation is $:________
b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $:________
c. Double-declining balance method
Using the double-declining-balance method, depreciation is $_______ for 2017 and $ for 2018 for 2017 and $ for 2018. for 2017 and for 2017 and $________ for 2018.
Answer:
1. Compute Northeast USA's depreciation for the first two years on the plane using the straight-line method, theunits-of-production method, and the double-declining balance method.
a. Straight-line method Using the straight-line method, depreciation is $9,600,000
straight line depreciation = ($53,200,000 - $5,200,000) / 5 = $9,600,000
depreciation expense year 1 = $9,600,000
depreciation expense year 2 = $9,600,000
b. Units-of-production method (Round the depreciation per unit of output to two decimal places to compute your final answers.) Using the units-of-production method, depreciation is $7.384615 per mile
depreciation expense per unit of production = ($53,200,000 - $5,200,000) / 6,500,000 = $7.384615 per mile
depreciation expense year 1 = $7.384615 x 900,000 = $6,646,153.50
depreciation expense year 2 = $7.384615 x 1,400,000 = $10,338,461
c. Double-declining balance method
depreciation expense year 1 = 2 x 1/5 x $53,200,000 = $21,280,000
depreciation expense year 2 = 2 x 1/5 x $31,920,000 = $12,768,000
Group-oriented negotiators are concerned about their own interests above all else. Is this statement true or false?
Answer: False
Explanation:
Negotiation is a dialogue taht takes place between two to more individuals so that a common stand can be reached on a subject.
Group-oriented negotiators are concerned about the interest of their teams or groups and not their own interests. Therefore, the above question is wrong.
Quality is primarily related to satisfaction viewpoint of:___________.
a. Customer Manufacturer
b. Service provider
c. General public
d. all of above
Answer: Consumer
Explanation:
Quality has to do with the standard by which a product is being compared with other similar products.
Quality is primarily related to satisfaction viewpoint of consumers. If consumers are not satisfied with a particular product, it will have a negative impact on the sale of the product hence the product quality must be taken into consideration in order to enable consumers to buy such product.
A modified DCF analysis is best for evaluating and selecting the optimal strategic alternative when a company has ___ goal(s) and ___ measure(s).
Answer: single; quantitative
Explanation:
The discounted cash flow analysis is a method that is used to determine the value of a project, security, or assets by using time value of money.
The discounted cash flow analysis is used in real estate, investment finance, patent valuation etc. A modified DCF analysis is best for evaluating and selecting the optimal strategic alternative when a company has single goal(s) and quantitative measures.
Answer:
Multiple; quantitative
Explanation:
A modified DCF analysis is best for evaluating and selecting the optimal strategic alternative when a company has ___ goal(s) and ___ measure(s).
A customer sells short 100 shares of ABC at $17 as the initial transaction in a new margin account. The customer must deposit:_______.
A. $750.
B. $1,500.
C. $2,000.
D. $3,000.
Answer: $2,000
Explanation:
Regulation T which governs such actions in the investment market would only require that the customer deposit 50% of the total amount to be called which would be;
= 50% * (100 * 17)
= $850
However, as this is a new margin account, there is a set minimum that must be reached to enable it to be open. That minimum is $2,000.
Mojo Mining has a bond outstanding that sells for $2,201 and matures in 21 years. The bond pays semiannual coupons and has a coupon rate of 7.38 percent. The par value is $2,000. If the company's tax rate is 40 percent, what is the aftertax cost of debt
Answer:
the after tax cost of debt is 3.90 %.
Explanation:
The Cost of debt is the rate required on the bond and this is calculated as follows :
PV = - $2,201
n = 21 × 2 = 42
PMT = ($2,000 × 7.38 %) ÷ 2 = $73.80
P/YR = 2
FV = $2,000
r = ?
Using a Financial Calculator, the Pre-tax Cost of debt, r is 6.4963% or 6.50 % (2 decimal places)
After tax cost of debt = Interest rate × (1 - tax rate)
= 6.50 % × (1 - 0.40)
= 3.90 %
Chapeau Company, a U.S. corporation, operates through a branch in Champagnia. The source rules used by Champagnia are identical to those used by the United States. For 2016, Chapeau has $2,000 of gross income, $1,200 from U.S. sources and $800 from sources within Champagnia. The $1,200 of U.S. source income and $700 of the foreign source income are attributable to manufacturing activities in Champagnia (general category income). The remaining $100 of foreign source income is passive category interest income. Chapeau had $500 of expenses other than taxes, all of which are allocated directly to manufacturing income ($200 of which is apportioned to foreign sources). Chapeau paid $150 of income taxes to Champagnia on its manufacturing income. The interest income was subject to a 10 percent withholding tax of $10. Assume the U.S. tax rate is 35 percent. Compute Chapeau’s allowable foreign tax credit in 2016.
From the information given, we learned that Chapeau company (a U.S corporation) is operating another branch in Champagnia. This implies that Chapeau company is operating a branch in a foreign company.
Since tax is going to be imposed on the corporation, It is crucial to consider the foreign tax credit (FTC).
The foreign tax credit (FTC) is a policy designed to help US taxpayers with foreign-source income and earnings to avoid having to pay numerous taxes in several countries. The FTC is restricted to a limit, which is determined by using the formula:
[tex]{\text{FTC limit }= \dfrac{\text{ Foreign source taxable income}}{\text{Total taxable income}}\times \text{ Precredit Us tax }}[/tex]
The FTC as well as its limitations are calculated differently for general category income and the passive category income.
From the question, In 2016:
the total gross income = $2000total expense = $500∴
The total taxable income = Total gross income - the total expense
The total taxable income = $2000 - $500
The total taxable income = $1500
From the given assumption that the tax rate in U.S = 35%
∴
The Precredit U.S tax = Total taxable income × U.S tax rate
The Precredit U.S tax = $1500 × 35%
The Precredit U.S tax = $1500 × 0.35
The Precredit U.S tax = $525
However, from the Total Gross income, we learnt that only $800 was Foreign source income.
Therefore, to compute Chapeau’s allowable foreign tax credit in 2016, we earlier said we are going to calculate it differently based on FTC and its limitations.
To start with General Category income:
Given that:
The total gross income is $700, and;The expense related other than taxes is $200Then;
The General Category foreign taxable income = total gross income - total expense
The General Category foreign taxable income = $700 - $200
The General Category foreign taxable income = $500
As such, the FTC limit is calculated as:
[tex]{\text{FTC limit }= \dfrac{\text{ Foreign source taxable income}}{\text{Total taxable income}}\times \text{ Precredit Us tax }}[/tex]
[tex]{\text{FTC limit }= \dfrac{\text{ \$500}}{\text{\$1500}}\times \text{\$525 }}[/tex]
[tex]{\text{FTC limit }= \dfrac{\text{ \$1}}{\text{\$3}}\times \text{\$525 }}[/tex]
FTC limit = $175
Provided we are being told that Chapeau paid $150 of income taxes to Champagnia(its foreign company) on its manufacturing income, therefore Chapeau will receive the whole amount paid for tax since it is still within the FTC limit as a foreign tax credit.
On the other hand, For Passive category Income:
We are given that the remaining $100 is allocated to the incomeNo expense was allocated for passive category incomeThus, the foreign source taxable income will also be $100
Hence, the FTC limit for this category is calculated as:
[tex]{\text{FTC limit }= \dfrac{\text{ Foreign source taxable income}}{\text{Total taxable income}}\times \text{ Precredit Us tax }}[/tex]
[tex]{\text{FTC limit }= \dfrac{\text{ \$100}}{\text{\$1500}}\times \text{\$525 }}[/tex]
[tex]{\text{FTC limit }= \dfrac{\text{ \$1}}{\text{\$15}}\times \text{\$525 }}[/tex]
FTC limit = $35
From the question, recall that: Chapeau Company paid $10 of the withholding tax to Champagnia (its foreign company), however since the amount is within the $35 FTC limit.
Chapeau Company will receive the total amount paid for tax as a foreign tax credit.
Thus, we can conclude from the above explanations and concepts that the total Chapeau’s allowable foreign tax credit in 2016 is ($150 + $10)
= $160
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A registered representative is notified verbally by the nephew of a client that his uncle has passed away. Which statements are TRUE regarding the actions that the registered representative can take based on this information?
I The account should be immediately marked as "deceased"
II The account should be marked deceased only when instructions are received from the executor of the deceased's estate
III All open orders should be canceled immediately
IV All open orders should be canceled only when instructions are received from the executor of the deceased's estate
a. I and III
b. I and IV
c. II and III
d. II and IV
Answer: a. I and III
Explanation:
As soon as word comes through that a client has passed on, the immediate thing to do is to note the date of death and then mark the account as deceased.
After this, all open orders should be immediately cancelled. It is also best to inform a superior of the development. Any other actions would from there henceforth regarding the account is to be determined by the executor of the estate.
Answer:
d. II and IV
Explanation:
The nephew cannot freeze or cause the account to be freezed because he is not considered an immediate family of the deceased or an executor for the deceased. The account cannot be marked as deceased and all open orders cannot be cancelled yet until the executor who was appointed to administer the deceased estate gives the instruction or announces to the representative of the person's death. The representative must therefore endeavor to make enquiries or call the right people to get needed information
Even though Kelly did not actively post the leaked information on social media, Don and the rest of the management team decided she was still responsible for the social media infringement because she
Answer:1.Even though Kelly did not actively post the leaked information on social media, Don and the rest of the management team decided she was still responsible for the social media infringement because she
a.told someone information which led to the social media post.
2.In the case of Serena’s social media complaints about the company, Don says the key is that, though her comments did not put the company in a good light, there are important lines she did not cross. ________, racial bias, and foul language are the three examples he cites that would beinfringements on company social media policies.
a.Hate speech
3.What is Don’s response when Kelly tells him that the assistant manager labelled social media training a “low priority”?
a.He makes a note to make sure it’ll never happen again.
4.When Kelly continues to argue against the decision to let her go, Don tells her that he is sorry to see her go and that he will give her the best reference he can under the circumstances. Here, what is his strategy for managing this difficult confrontation?
a.showing empathy for the employee
5.After the confrontation with Kelly, Don says that one thing that did not help the decision to let Kelly go was that she refused to take ________ for the social media violation.
a.responsibility
Explanation:
Don and the rest of the management team agreed that even though Kelly did not actively publish the disclosed material on social media, she was nonetheless accountable for the social media infringement since she told someone information that led to the social media post.
What are social media and its importance?The phrase "social media" refers to websites and programs that emphasize communication, community-based input, engagement, content sharing, and collaboration. People utilize social media to stay in touch with friends, family, and members of various communities.
An information leak occurs when confidential information is disclosed to unauthorized individuals or parties. A brief examination of news sources reveals that data leaks occur with worrying frequency.
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