In order to cover both the employee and employer portions of FICA and Medicare, sole entrepreneurs and independent contractors must pay self-employment taxes on their net earnings. Social Security and Medicare are funded for using self-employment taxes.
Due to the current 15.3% self-employment tax rate for both the employee and employer components, sole proprietors and independent contractors are required to pay 15.3% of their net profit as self-employment taxes.
You are a sole proprietor if you make money by selling goods or services and spend money to generate that money. The connection between a customer and a self-employed individual who offers services as an independent company rather than as a full-time employee is referred to as a "independent contractor".
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How can you recognize if a reduced cost is really a shadow price for a simple upper/lower bound constraint on a decision variable?.
In linear programming, the shadow price is the marginal value of a constraint or variable. It represents the change in the objective function per unit change on the right-hand side of the constraint, assuming all other constraints are binding.
On the other hand, the reduced cost represents the amount by which the objective function coefficient of a non-basic variable must improve before it becomes a basic variable. When dealing with simple upper/lower bound constraints on a decision variable, it can be tricky to distinguish between shadow prices and reduced costs. However, there are a few key indicators that can help identify which is which.
Firstly, if the constraint is binding, meaning the decision variable is at its upper or lower bound, then the shadow price is equal to the reduced cost. This is because the constraint is effectively acting as a binding constraint, so any change in the right-hand side will affect the objective function in the same way as a change in the objective function coefficient. Secondly, if the constraint is non-binding and the reduced cost is positive, it indicates that the current value of the decision variable is less than the upper bound, and increasing it will improve the objective function. In this case, the reduced cost is not a shadow price, as the constraint is not binding.
Finally, if the constraint is non-binding and the reduced cost is negative, it indicates that the current value of the decision variable is greater than the lower bound, and decreasing it will improve the objective function. In this case, the shadow price is equal to the absolute value of the reduced cost, as it represents the marginal value of the constraint at the current value of the decision variable.
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In the permissive economic climate of recent decades, transnational corporations frequently relocate their facilities in search of:.
In the permissive economic climate of recent decades, transnational corporations frequently relocate their facilities in search of the least restrictive environmental regulations. The right answer is c.
One of the most crucial topics in international economics is transnational firms. They have a direct impact on emerging worldwide business trends, global competition on global marketplaces, as well as state and national economies.
A transnational corporation is a business that manages income and assets across multiple nations, engages in foreign ventures, or produces goods or services on a global scale. As land and labour are less expensive there, it establishes factories there. Business firms' shift towards integrated international investment might be considered as an intelligent choice to adapt to their environment.
The correct answer is option c.
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The question seems incomplete. The complete question is:
In the permissive economic climate of recent decades, transnational corporations frequently relocate their facilities in search of:.
a. World Social Forum
b. Cultural diversity
c. The least restrictive environmental regulations
the manufacturing overhead budget at polich corporation is based on budgeted direct labor-hours. the direct labor budget indicates that 9,000 direct labor-hours will be required in february. the variable overhead rate is $9.70 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $102,600 per month, which includes depreciation of $18,190. all other fixed manufacturing overhead costs represent current cash flows. the company recomputes its predetermined overhead rate every month. the predetermined overhead rate for february should be: multiple choice $11.40 per direct labor-hour $18.80 per direct labor-hour $9.70 per direct labor-hour $21.10 per direct labor-hour
the predetermined overhead rate for February at Polich Corporation is $21.10 per direct labor-hour
The predetermined overhead rate for February at Polich Corporation is $21.10 per direct labor-hour. This rate is calculated by adding up the total fixed and variable overhead costs for the month of February and dividing by the total number of direct labor-hours required for that month.
The variable overhead rate is $9.70 per direct labor-hour, which is multiplied by the budgeted direct labor-hours of 9,000 to get a total variable overhead cost of $87,300.
The fixed overhead costs for February are $102,600, which includes depreciation of $18,190. After subtracting depreciation from the fixed costs, we get $84,410 in current fixed costs.
The total manufacturing overhead cost for February is the sum of the variable and fixed overhead costs: $87,300 + $84,410 = $171,710.
To calculate the predetermined overhead rate, we divide the total overhead cost by the budgeted direct labor-hours for February: $171,710 / 9,000 = $21.10 per direct labor-hour.
Therefore, the predetermined overhead rate for February at Polich Corporation is $21.10 per direct labor-hour
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which component is a credit-management feature typically included in? group of answer choices accounting and finance components human resource components production and materials management components production and managerial management components
A credit-management feature is typically included in accounting and finance components. This process is essential in maintaining a healthy cash flow and minimizing bad debts.
Credit management is a process that involves controlling and managing credit policies, assessing the creditworthiness of potential customers, setting appropriate credit limits, and monitoring and managing credit risks. As credit management deals with the financial aspects of a business, it is commonly found within the accounting and finance components of an organization.
These components help manage the financial transactions and records, making it the most suitable area to include a credit-management feature. By integrating credit management into the accounting and finance components, businesses can streamline their processes and improve their overall financial management.
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suppose alyssa currently allocates 75% of her portfolio to a diversified group of stocks and 25% of her portfolio to risk-free bonds; that is, she chooses combination d. she wants to reduce the level of risk associated with her portfolio from a standard deviation of 15 to a standard deviation of 5. in order to do so, she must do which of the following? check all that apply. sell some of her stocks and use the proceeds to purchase bonds accept a lower average annual rate of return sell some of her bonds and use the proceeds to purchase stocks place the entirety of her portfolio in bonds
In order to reduce the level of risk associated with her portfolio from a standard deviation of 15 to a standard deviation of 5, Alyssa must sell some of her stocks and use the proceeds to purchase bonds.
This will decrease the proportion of stocks in her portfolio and increase the proportion of bonds, which are generally considered to be less risky than stocks. Accepting a lower average annual rate of return is not necessarily required, as there are still bond options that can provide a decent return. Selling some of her bonds and using the proceeds to purchase stocks would actually increase the level of risk in her portfolio, so this is not recommended. Placing the entirety of her portfolio in bonds would result in a very conservative, low-risk portfolio but may not be suitable for her investment goals and objectives.
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Which international organization actively campaigns for human rights?.
One international organization that actively campaigns for human rights is Amnesty International.
This non-governmental organization focuses on promoting and protecting human rights globally. Through various campaigns, they address issues such as political repression, violence against women, and the use of torture. With a presence in over 150 countries, Amnesty International's 100-word mission is to create a world where every person enjoys all the human rights enshrined in the Universal Declaration of Human Rights and other international human rights standards.
They accomplish this through research, advocacy, mobilizing public support, and working with governments and organizations.
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Traditionally, advertising has been ________ and ________.
Traditionally, advertising has been persuasive and influential.
Advertising is the form of communication which aims to promote or sell a product, service, or idea to a target audience. The traditional approach to advertising has been to use persuasive techniques to influence the audience's attitudes, beliefs, and behaviors.
In addition, advertising has traditionally been seen as a powerful tool for shaping public opinion and cultural values. Advertisements can influence the way people perceive themselves and their needs, as well as the way they view the world around them. As a result, advertising has the potential to play a significant role in shaping consumer behavior and market trends.
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When $100 is deposited in the banking system, it leads to maximum expansion in bank deposits of $1,000. What is the required reserve ratio assuming that the excess reserves are o O 5% O 10% O 20% 0 0% Question 3 1 pts When you purchase a T-shirt for $25, money is serving which function? Medium of exchange Store of value Standard of deferred payments O Unit of account
The required reserve ratio in this case is 10%.
The required reserve ratio can be calculated using the money multiplier formula:
Money multiplier = 1 / Required reserve ratio
Given that a $100 deposit leads to a maximum expansion of $1,000 in bank deposits, we can set up the following equation:
1,000 = 100 / Required reserve ratio
Solving for the required reserve ratio, we get:
Required reserve ratio = 100 / 1,000
Required reserve ratio = 0.1 or 10%
Therefore, the required reserve ratio in this case is 10%.
When you purchase a T-shirt for $25, money is serving the function of a medium of exchange. This means that money is being used to facilitate the transaction and exchange goods or services.
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a parent purchased 300 shares of zinco stock for $30,000 in year 1. on may 23, year 3, the parent sold all the stock to their child for $20,000, its then fair market value. the parent realized no other gain or loss during year 3. on july 26, year 3, the child sold the 300 shares of zinco for $25,000. what amount of the loss from the sale of zinco stock can the parent deduct in year 3?
The parent can deduct a loss of $10,000 in year 3. This is calculated by subtracting the selling price of $20,000 (the fair market value at the time of sale to the child) from the original purchase price of $30,000. Since the parent did not realize any other gain or loss during year 3, this $10,000 loss can be fully deducted on their tax return. The subsequent sale of the stock by the child for $25,000 does not affect the parent's tax deduction.
The parent sold the Zinco stock to their child for $20,000, which was its fair market value at the time. Since the parent initially purchased the stock for $30,000, they realized a loss of $10,000 ($30,000 - $20,000) on the transaction. However, since the parent did not realize any other gain or loss during year 3, they can deduct the entire $10,000 loss from the sale of the Zinco stock in year 3.
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shane pulled her car into the gas station just as the fuel gauge dropped below empty. in this example, shane benefited from the utility offered by the gas station. group of answer choices creation place value marketing quality\
The gas station provides valuable utility to its customers by offering quality products and services. Here option D is the correct answer.
The situation described in the example highlights the utility offered by the gas station to its customers. Utility refers to the usefulness or satisfaction that a consumer derives from a product or service. In this case, the gas station provides the utility of fuel to Shane, allowing her to continue using her car.
The utility provided by the gas station can be attributed to various factors such as creation, place value, marketing, and quality. However, in this specific scenario, the most relevant factor that contributed to the utility experienced by Shane is quality.
The quality of the fuel offered by the gas station determines its ability to meet the needs of Shane's car. The gas station must ensure that the fuel it provides is of good quality and meets the necessary standards. This ensures that the car runs smoothly and efficiently, minimizing the likelihood of breakdowns or other issues.
In addition, the quality of other services offered by the gas station such as tire inflation, windshield cleaning, and convenience store offerings can also enhance the overall utility of the gas station.
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Complete question:
Shane pulled her car into the gas station just as the fuel gauge dropped below empty. in this example, Shane benefited from the utility offered by the gas station. group of answer choices
A - creation
B - place value
C - marketing
D - quality
If the government wanted to tax or subsidize this good to achieve the socially-optimal level of output, it would:.
If the good produces a negative externality (e.g., pollution), the government would impose a Pigouvian tax to internalize the cost and reduce production to the socially-optimal level.
To achieve the socially-optimal level of output for a good, the government could either tax or subsidize it. The long answer is that it would depend on the specific circumstances of the market.
Overall, whether the government chooses to tax or subsidize a good to achieve the socially-optimal level of output depends on the specific externalities and market conditions of the good.
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in the u.s., firms that engage in cooperative efforts to coordinate pricing group of answer choices all of them are simply trying to reach a nash equilibrium and are not viewed by courts as necessarily breaking any laws. may face federal charges of illegal collusion if they cannot provide evidence that the coordination of prices was in the best interest of consumers.
In the United States, firms that engage in cooperative efforts to coordinate pricing may be attempting to reach a Nash equilibrium, which is a state in which each firm's strategy is optimal given the strategies of the other firms.
However, if these firms cannot provide evidence that their pricing coordination was in the best interest of consumers, they may face federal charges of illegal collusion. While such coordination is not necessarily viewed as breaking any laws, it is important for firms to demonstrate that their actions ultimately benefit consumers.
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the premium payments of life insurance policies with cash surrender value include an insurance expense portion and a(n)
The premium payments of life insurance policies with cash surrender value include an insurance expense portion and a savings portion.
The insurance expense portion is the cost of the actual insurance coverage, while the savings or investment portion is used to accumulate cash value over time. This cash value can be used to pay premiums, taken as a loan, or surrendered for its cash value.
The savings or investment portion can also earn interest or dividends depending on the policy. Overall, the premium payments for life insurance policies with cash surrender value have both an insurance expense portion and a savings or investment portion that work together to provide both protection and financial benefits to the policyholder. This is the main answer to your question with a detailed explanation.
In life insurance policies with cash surrender value, the premium payments consist of two parts. The first part is the insurance expense portion, which covers the cost of providing life insurance coverage, such as mortality risk, administrative expenses, and profit for the insurance company.
The second part is the savings portion, which accumulates over time and contributes to the policy's cash surrender value. The cash surrender value represents the amount the policyholder would receive if they decide to cancel or "surrender" the policy before its maturity or death benefit payout.
In summary, when you pay premiums for a life insurance policy with cash surrender value, you are essentially paying for both insurance coverage and building up a savings component within the policy.
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Which of the following explains the development patterns for a country that has a large proportion of its economy engaged in the secondary economic sector?
A
The country exhibits extremely high land values as vast acreage is needed for manufacturing plants and luxury housing developments for manufacturing executives.
B
The country has an aging urban population and is importing day laborers from rural areas to keep up with the demands of production.
C
The country has a large population of well-educated labor, but it is widely dispersed around the country, distant from manufacturing facilities and employment opportunities.
D
The country has access to shipping lanes and inexpensive transport options that lead to establishment of factories close to raw materials or to markets, depending on the manufacturing process.
E
The country has available resources important to manufacturing, such as water and fossil fuels, but access is limited in many areas.
The development patterns of a country with a significant secondary economic sector are best explained by the presence of accessible shipping lanes and cost-effective transportation options, as mentioned in option D.
When a country has a large proportion of its economy engaged in the secondary economic sector (i.e. manufacturing), it is likely to develop patterns that are dependent on access to raw materials and markets. Therefore, the country with such an economy is likely to have established factories close to raw materials or to markets, depending on the manufacturing process. This is because access to shipping lanes and inexpensive transport options can be essential to the profitability of manufacturing businesses.
The development patterns for a country with a large proportion of its economy engaged in the secondary economic sector depend on access to raw materials and markets, which can be facilitated by shipping lanes and inexpensive transport options. Therefore, option D is the best explanation for the development patterns of such a country.
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Difference between llc and sole proprietorship tax.
The LLCs and sole proprietorships have their advantages and disadvantages, and the choice between them depends on individual circumstances, such as business goals, tax considerations, liability protection, and management structure.
The primary difference between a Limited Liability Company (LLC) and a sole proprietorship tax-wise is that LLCs are taxed separately from their owners, while sole proprietorships are not.
In a sole proprietorship, the business income is reported on the owner's personal income tax return, and they are personally liable for any business debts or legal issues. As a result, the owner is responsible for paying income tax on all the profits generated by the business.
On the other hand, LLCs are considered separate legal entities from their owners. The business income is taxed at the entity level, and the owners are not personally liable for any business debts or legal issues. The LLC's profits and losses are passed through to the owners and reported on their personal tax returns. However, LLCs have the option to choose how they want to be taxed, either as a sole proprietorship, partnership, S corporation, or C corporation.
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refer to exhibit 8 in the chapter on fiscal policy. using demand-side and supply-side fiscal policy theories, explain how a tax cut could either increase or decrease the price level.
Tax cut could either increase or decrease the price level depending on the specific fiscal policy theory employed. Under demand-side fiscal policy theory, it can boost aggregate demand by increasing disposable income.
This increase in consumer spending can lead to a rise in prices due to increased demand for goods and services. On the other hand, supply-side fiscal policy theory suggests that a tax cut can stimulate production and supply of goods and services. This increase in supply could lead to a decrease in prices due to increased competition among producers.
However, a more detailed explanation would require considering other factors that can influence the effect of a tax cut on prices. For instance, the extent to which the tax cut is offset by other fiscal policy measures or changes in monetary policy, as well as the overall state of the economy, can significantly affect the outcome.
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the imposition of a tariff on roses a. increases the number of roses imported by 100. b. decreases the number of roses imported by 200. c. decreases the number of roses imported by 400.
The imposition of a tariff on roses would likely decrease the number of roses imported by 400. A tariff is essentially a tax that is placed on imported goods, which makes those goods more expensive for consumers in the importing country. so, the correct option is C.
As a result, when a tariff is imposed on roses, the price of those roses would go up for consumers in the country where they are being imported. This would likely lead to a decrease in demand for imported roses, as consumers may opt to purchase cheaper alternatives, such as domestically-grown roses or other types of flowers.
In addition to decreasing the number of roses imported, a tariff could also have other economic effects. For example, it could lead to decreased profits for companies that rely on importing roses, as they may be forced to lower their prices in order to remain competitive. It could also lead to increased prices for consumers, as domestic growers may be able to charge higher prices for their roses in the absence of competition from imported roses.
Overall, while the imposition of a tariff on roses may be intended to protect domestic growers and producers, it is likely to have negative economic consequences for both consumers and businesses. Therefore, it is important to carefully consider the potential impacts of any trade policies before implementing them.
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One strategy u. S. Manufacturers have employed in order to become more competitive is.
The strategy that U.S. manufacturers have employed in order to become more competitive is to implement lean manufacturing techniques and process improvements. Here option D is the correct answer.
This approach involves minimizing waste, reducing inventory, and increasing efficiency throughout the production process. By doing so, manufacturers can lower costs, improve quality, and increase productivity, which ultimately results in a more competitive product.
Lean manufacturing techniques involve identifying and eliminating any unnecessary steps or processes in the production process. This includes reducing inventory levels, streamlining the flow of materials and information, and optimizing equipment usage. By doing so, manufacturers can increase efficiency, reduce lead times, and improve quality.
Process improvements involve analyzing each step of the production process and identifying ways to make it more efficient. This may involve using new technology, reorganizing workstations, or improving communication between workers. By continuously analyzing and improving the production process, manufacturers can remain competitive and meet the ever-changing demands of their customers.
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Complete question:
One strategy u. S. Manufacturers have employed in order to become more competitive is.
A) Increase prices of their products
B) Outsource production to other countries
C) Reduce the quality of their products
D) Implement lean manufacturing techniques and process improvements
Decide which of the following pricing strategies (skimming, penetration, introductory, or competitive) is being described:
ACME Corporation has spent $2.5 million developing its latest electronic device. It set the price for this item at $699. Similar products are being sold for $579. It plans to keep the price at this level for the first year then drop the price to $569.
The pricing strategy being described is skimming pricing. Skimming pricing is when a company charges a high price for a new product during its introduction phase to maximize profits and recover costs associated with development or research.
In this case, ACME Corporation spent a significant amount of money developing their latest electronic device and wants to maximize profits to recover their investment. By pricing the device at $699, which is higher than similar products being sold, ACME Corporation is aiming to target consumers who are willing to pay a premium price for the latest technology.
After a year, the price will be reduced to $569, likely to appeal to a broader market.
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buzz the broker has a radio show where he discusses penny stocks. in a recent show, buzz told his audience that he just bought into stock in the dipper diaper company at $0.05 a share. he continues to talk about the strength and great growth potential of the company for several days. the stock rises to $3.00 a share and buzz sells his position. he continues to talk up dipper diapers for another week then drops it from his daily discussion. what activity does this exemplify?
Buzz the broker's behavior exemplifies the practice of "pump and dump." In this scheme, a person or group promotes a stock to artificially increase its price and then sells its position for a profit before the stock price inevitably falls.
Buzz he hyped up Dipper Diaper Company on his radio show, causing many listeners to buy the stock and drive up the price. Once the stock reached a high price, Buzz sold his position, making a significant profit. He then stopped talking about the company, likely because he knew the price would eventually drop and did not want to be associated with the decline. This practice is illegal and unethical, as it misleads investors and manipulates the market.
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Jan, an unmarried individual, gave the following outright gifts in 2017:
Donee Amount Use by donee Jones $16,000 Down payment on house Craig 15,000 College tuition Kande 5,000 Vacation trip Jan’s 2017 exclusions for gift tax purposes should total
1. $36,000
2. $33,000
3. $31,000
4. $27,000
When you add up these three exclusions, you get $16,000 + $15,000 + $5,000 = $36,000. So, the correct answer is option 1, $36,000.
Jan's 2017 exclusions for gift tax purposes should total $36,000. Here's the breakdown:
1. Jones: $16,000 (Down payment on house) - This amount is fully included in the exclusion as it is under the annual gift tax exclusion limit of $15,000 per person per year (for 2021; in 2017, the limit was $14,000).
2. Craig: $15,000 (College tuition) - This amount can also be excluded entirely under the educational exclusion provision, which allows individuals to pay for someone else's tuition without incurring gift tax. The payment must be made directly to the educational institution.
3. Kande: $5,000 (Vacation trip) - This gift is also within the annual gifta x exctlusion limit and can be fully excluded.
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the whole grain company produces three products from harvesting whole grains. to harvest the whole grain, it incurs costs of $30,000. the company allocates joint costs using the value basis method. using the chart shown, how much of the joint product costs should be allocated to the cake mix product? grain-based product pounds produced sales value bread 12,000 $ 50,000 cake mix 10,000 20,000 pasta 15,000 30,000 totals 37,000 $ 100,000 multiple choice $15,000 $20,000 $6,000 $10,000
To answer this question, we need to use the value basis method to allocate joint product costs. This method allocates costs based on the sales value of each product.
First, we need to calculate the total sales value of all three products: $50,000 + $20,000 + $30,000 = $100,000.
Next, we calculate the perc
percentage of the total sales value that each product represents:
- Bread: $50,000 / $100,000 = 50%
- Cake mix: $20,000 / $100,000 = 20%
- Pasta: $30,000 / $100,000 = 30%
Now we can use these percentages to allocate the joint product costs.
For the cake mix product, we allocate 20% of the $30,000 joint product costs:
- $30,000 x 0.20 = $6,000.
Therefore, the answer is $6,000.
In summary, the company should allocate $6,000 of the joint product costs to the cake mix product using the value basis method.
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The dow jones industrial average index has an unusual weighting methodology.
The Dow Jones Industrial Average (DJIA) index has an unusual weighting methodology because it is price-weighted.
In a price-weighted index like the DJIA, the stocks are weighted based on their individual stock prices. This means that higher-priced stocks have a larger impact on the index's movement than lower-priced stocks, regardless of the company's actual market capitalization or importance in the economy. This differs from other indices, such as the S&P 500, which use a market-capitalization-weighted methodology, where the weight of each stock is determined by its market capitalization relative to the total market capitalization of all stocks in the index.
The price-weighted methodology used in the DJIA has its advantages and disadvantages. One advantage is its simplicity, as it is easier to calculate and understand for many investors. However, the major disadvantage is that it may not accurately reflect the overall market performance, since higher-priced stocks have more influence on the index, even if they represent a smaller portion of the overall market. In contrast, market-capitalization-weighted indices like the S&P 500 provide a better representation of the market, as they consider both the stock price and the size of the company.
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Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 62701. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason’s Social Security number is 111-11-1112, and June’s is 123-45-6788. Roberta has never owned or used any virtual currency. She does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta received the appropriate recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored.
Roberta, an advertising executive, earned a salary from ABC Advertising of $120,000 in 2020. Her employer withheld $19,000 in Federal income tax and $4,400 in state income tax.
Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $8,500 for Jason’s support during 2020. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2020, she has decided not to do so. Roberta provides all of June’s support.
Roberta’s mother died on January 7, 2020. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother’s life insurance policy, Roberta received insurance proceeds of $300,000. Her mother’s cost basis for the life insurance policy was $120,000. Roberta’s favorite aunt gave her $13,000 for her birthday in October.
On November 8, 2020, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2015. Walt’s cost basis for the stock was $26,000. On December 1, 2020, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2016, for $8,000.
An examination of Roberta’s records reveals that she received the following:
Interest income of $2,500 from First Savings Bank.
Groceries valued at $750 from Kroger Groceries for being the 100,000th customer.
Qualified dividend income of $1,800 from Amber.
Interest income of $3,750 on City of Springfield school bonds.
Alimony of $16,000 from Wayne; divorce finalized in May 2017.
Distribution of $4,800 from ST Partnership (Employer Identification Number: 46-4567893). Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W–2 wage limitation does not.
From her checkbook records, she determines that she made the following payments during 2020:
Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained).
Payment of $5,000 to ECM Hospital for the medical expenses of a friend from work.
Mortgage interest on her residence of $7,800 to Peoples Bank.
Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence.
Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000.
Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses.
A $1,000 ticket for parking in a handicapped space.
Attorney’s fees of $500 associated with unsuccessfully contesting the parking ticket.
Contribution of $250 to the campaign of a candidate for governor.
Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $1,808.
Calculate Roberta’s net tax payable or refund due for 2020. Use the appropriate forms and schedules. Suggested software: ProConnect Tax.
Complete the 1040 with schedule 1, schedule A, schedule B, schedule D, schedule E and 8995 suporting schedule for year 2020
The net medical expenses:
Deductable expenses: $4,300
10% of gross total income: $10,985
What is Tax Return?Submitting a tax return is a mandatory declaration for all individuals, businesses, and other entities to the respective governments in order to accurately calculate their collective profits, deductions, and resultant liabilities over a specified period, typically a single year.
This document provides governments with data to reconcile the amount of taxes due from or owed to the taxpayer. Different entities must submit returns according to their type, annual income sources, along with the applicable regional regulations in their place of residence or business activity.
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generally, consumer finance companies make loans to borrowers who have been refused loans at banks due to low income or poor credit.T/F
Consumer finance companies specialize in providing loans and other financial services to individuals who may not qualify for traditional bank loans. Given statement is true
These borrowers may have low income, poor credit, or no credit history, making them higher-risk borrowers in the eyes of traditional banks. Consumer finance companies may be willing to take on this added risk by offering loans with higher interest rates and fees. While these loans may be more expensive for the borrower, they can provide access to much-needed funds and financial services. However, it's important for borrowers to carefully review the terms and conditions of these loans and ensure that they can afford the payments before taking on any debt.
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which of these is a weakness of the payback method? select all that apply. multiple select question. the payback benchmark must always be set at three years. the present value of the inflows is ignored. the initial investment is ignored. all cash flows after the payback period are ignored.
The weakness of the payback method includes the following:
1. The payback benchmark must always be set at three years: This is a weakness because it does not consider the time value of money. It assumes that all cash flows occur at the same time and ignores the fact that a dollar received today is worth more than a dollar received in the future.
2. The present value of the inflows is ignored: This is another weakness of the payback method. The payback method only looks at the cash inflows without considering the present value of those inflows. This means that the method does not take into account the fact that cash inflows in the future are worth less than cash inflows today.
3. The initial investment is ignored: The payback method also ignores the initial investment required to undertake a project. This means that the method does not consider the cost of capital, which is the rate of return required by investors to undertake a project.
4. All cash flows after the payback period are ignored: Finally, the payback method ignores all cash flows that occur after the payback period. This means that the method does not consider the long-term profitability of a project. It only looks at the time required to recover the initial investment.
In conclusion, the payback method has several weaknesses, including the fact that it does not consider the time value of money, the present value of cash inflows, the initial investment required, and all cash flows after the payback period. As a result, it may not be the most accurate or reliable method for evaluating investment opportunities.
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first part: a magazine publisher wants to launch a new magazine geared to college students. the project's initial investment is $74. the project's cash flows that come in at the end of each year are $26 for 6 consecutive years beginning one year from today. what is the project's npv if the required rate of return is 12%?
The project's NPV based on the information provided is $32.89 if the required rate of return is 12%.
Project's initial investment (I) equals $74.
Each year's cash flow at year's end (P) equals $26.
Years (n) equals 6
12% is the required rate of return (r).
NPV of the project =P× (1− (1+r) ^(−n))/r) −I
=$32.89
The net present value (NPV) includes a variety of cash flows that happen at various times. It is feasible to figure out the present value of a cash flow depending on how much time has passed since now. Additionally, the discount rate is important. The temporal value of money is considered by NPV.
It provides a way to evaluate and compare financial assets or capital projects that generate cash flows over time, such as loans, investments, insurance contract payouts, and many more uses. The current value of the anticipated future cash flows will decline depending on the rate of return that is selected. A present cash flow is more valuable than an identical future cash flow since it may be invested immediately and start earning returns.
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a higher roe means . (check all that apply.) multiple select question. stockholders may enjoy higher returns more shares of stock have been issued the company used financial leverage to its stockholders' advantage the p/e ratio must have decreased
A higher return on equity (ROE) means that stockholders may enjoy higher returns, and the company used financial leverage to its stockholders' advantage. However, it does not necessarily mean that more shares of stock have been issued or that the P/E ratio has decreased. A higher ROE indicates that the company is generating more profits with the shareholders' investment, which can lead to higher dividends or stock price appreciation.
The company may have used debt financing to boost its returns, but it should be noted that too much leverage can also increase financial risk. Overall, a higher ROE is a positive indicator of a company's profitability and efficiency in generating returns for its shareholders.
A higher ROE (return on equity) means that:
1. Stockholders may enjoy higher returns: This is because a higher ROE indicates that the company is generating more profits relative to its shareholders' equity, potentially leading to increased dividends and capital gains for the stockholders.
2. The company used financial leverage to its stockholders' advantage: A higher ROE could also indicate that the company has effectively used debt financing (financial leverage) to increase its returns on equity, thus benefiting its stockholders.
However, a higher ROE does not necessarily mean that:
1. More shares of stock have been issued: The number of shares issued is not directly related to the ROE. It is possible for a company to have a higher ROE without issuing more shares of stock.
2. The P/E (Price-to-Earnings) ratio must have decreased: Although a higher ROE may lead to increased earnings, it does not guarantee that the P/E ratio will decrease. The P/E ratio depends on both the company's earnings and its stock price, which can be influenced by many factors beyond ROE.
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Explain why business services are disproportionately.
Business services are disproportionately important in the modern economy for a variety of reasons. Firstly, as the economy has shifted away from manufacturing and towards service-based industries, businesses have become increasingly reliant on services to support their operations.
This includes everything from IT and marketing to legal and accounting services. Secondly, businesses are facing greater competition than ever before, and need to constantly innovate and improve their operations in order to stay ahead. Services play a crucial role in this, providing businesses with the expertise and support they need to optimize their processes and stay competitive. Finally, the rise of the digital economy has made it easier than ever for businesses to access a wide range of services, from cloud-based software to on-demand freelancers. This has created a virtuous cycle in which businesses can scale up their operations quickly and efficiently, driving growth and innovation across the economy as a whole.
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beta corporation has two divisions, refining and extraction. the company's primary product is lucky oil. each division's costs are provided below: extraction: variable costs per barrel of oil $13 fixed costs per barrel of oil $6 refining: variable costs per barrel of oil $26 fixed costs per barrel of oil $36 the refining division has been operating at a capacity of 40,800 barrels a day and usually purchases 25,600 barrels of oil from the extraction division and 15,100 barrels from other suppliers at $62 per barrel. what is the transfer price per barrel from the extraction division to the refining division, assuming the method used to place a value on each barrel of oil is 110% of full costs?
The transfer price per barrel from the Extraction Division to the Refining Division is $20.90.
Extraction:
Variable cost per barrel = $13
Fixed cost per barrel = $6
Full cost per barrel = Variable cost per barrel + Fixed cost per barrel = $13 + $6 = $19
Now, to determine the transfer price, we need to use the method of placing a value on each barrel of oil at 110% of full costs. This means that the transfer price per barrel should be 110% of the full cost per barrel for the extraction division, which is $19 x 1.1 = $20.90.
Therefore, the transfer price per barrel from the extraction division to the refining division, assuming the method used to place a value on each barrel of oil is 110% of full costs, is $20.90.
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