Answer:
a. 24%
b. 12%
Explanation:
Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).
Chuck Marginal Tax Rate
a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:
= $75,000 + $40,000
= $115,000
Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.
b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:
= $75,000 - $40,000
= $35,000
The marginal tax rate for taxable income of $35,000 is 12% according US tax rate schedule.
Note: the interest is categorized as interest from municipal bond, so it is tax free.
It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.
Based on IRS tiers, if Chuck earns an extra $40,000 his marginal tax rate would be 24%. If he instead had a $40,000 tax deduction, his rate would drop to 12%. These rates depend on the specific tax year.
The marginal tax rate for Chuck's income bracket of $75,000 is 22% based on IRS tax rates. However, if Chuck earns an additional $40,000, it would bump his total taxable income to $115,000, placing him in the 24% tax bracket. Therefore, his marginal tax rate for the additional $40,000 is 24%.
If instead Chuck had $40,000 of additional deductions, this would reduce his taxable income to $35,000. According to the IRS tax rates, this puts him at the 12% tax bracket. Therefore, his marginal tax rate with the additional deductions is 12%.
Please note that these rates are specific to the current tax year and subject to change.
#SPJ3
Total real income increased.
The unemployment rate declined.
Corporate profits increased.
Answer:
The answer are: total real income increased, the unemployment rate declined; Corporate profits increased.
Explanation:
As real GDP increases, people/entities in the economy enjoy actual increase in their income ( income adjusted for inflation effect), thus they will tend to spend more, making "car sales declined" a wrong answer whil "total real income increased" the right one.
Higher spending also means demand for goods and services are higher helping to boost the corporate's profit up. Once the profit is higher, corporate will have plan to expand their business leading to a higher demand in labor which in turn reduce the unemployment rate.
Answer:
B
Explanation:
Answer:
In year 1 the warranty expense reported is $450 ($9,000 x 5%)
Explanation:
The journal entries would be:
Sales journal entry - August 16 - Year 1
Account Debit Credit
Cash $9,000
Cost of goods sold $4,500
Revenue $9,000
Inventory $4,500
Accrued Warranty Expense - December 31 - Year 1
Account Debit Credit
Warranty Expense $450
Estimated Warranty
Liability $450
By the end of Year 1, the company has recognized an accrued expense (an accrued expense is recognized before cash is actually paid out) for $450.
Answer:
Contribution per unit
= Selling price - Variable cost per unit
= $27 -$13
= $14
Contribution margin ratio
= Contribution per unit
selling price
= $14
$27
= 0.518518518
Break-even point in dollars
= $1,400
0.518518518
= $2,700
Explanation:
Break-even point in dollars equals fixed cost divided by contribution margin ratio. Contribution margin ratio is equal to contribution per unit divided by selling price. Contribution per unit is selling price minus variable cost per unit.
Answer:
Total ending inventory $ 2,162.5 LIFO perpetual method
Explanation:
At the time of each sale we determinate the last untis available for sale:
Beginning 175
Purchase 200
Slaes of 300
We use the entire 200 units purchase and 100 of the beginning inventory leaving
Beginning inventory of 75
Now, we continue:
Beginning inventory 75
5/15 purchase 200
Sales of 250 units
we use the entire 200 untis form the purchase and 50 units from beginning inventory
leaving
Beginning inventory 25 at 11.50 = 287.5
5/25 purcahse 150 units at 12.50 = 1875
Total ending inventory 2,162.5
Explanation:
Communication: The most important to covey from low level to high level and vice-versa.
Leadership skill: The see the growth visibly. An essential skill for both employer and employee.
Crisis management: Employee should possess this skill to handle challenging situation
Negotiation: Which is really important both for work life and personal life. This is required in all the levels of hierarchy.
Collaboration: Required to work as a team
Problem-solving: The skill which would be tested in various interviews in all the levels.
Answer:
From Year 1 to Year 2 : There is annual deflation 11.11%
As price falls, value of money rises
Explanation:
Given : Commodity Basket Cost = $9 in Year 1 ; Commodity Basket Cost = $8 in Year 2
From Year 1 to Year 2 : There has been fall in price level. Proportionate (%) Fall in price level = Change in Price / Old Price x 100
So, Fall in price level = [ ( 9 - 8 ) / 9] x 100 = 1/9 x 100 = 11.11%
Hence, from year 1 to year 2 : there has been 11% fall in price i.e Deflation
Considering Income = $72 :
So, it illustrates that : As price falls, the purchasing power of money (value of money) rises.