Robert Godfrey July 8, 2013 Week 2 Problem Set Professor Christopher De Maline Problem 72 (Ch. 2) Latrell recently used his Delta Skymiles to purchase a free roundtrip ticket to Milan, Italy (value $1,200). The frequent flyer miles used to purchase the ticket were generated from Latrell’s business travel as a CPA. Latrell’s employer paid for his business trips, and he was not taxed on the travel reimbursement. Use an available tax research service to determine how much income, if any, does Latrell have to recognize as a result of purchasing an airline ticket with Skymiles earned from business travel.
Speaking of parking, do you know how much does it cost to have a parking lot for a semester? Let me say, you don’t want to know. It is extremly expensive. According to the monthly released article “The Transit Savings Report”, American Public Transportation Association (APTA) stated that by taking the bus students could save nearly 800$ per month. It means that individuals who ride VTA buses can sace on average 9,000$, which is very tempting to a SJSU student.
Case Study 6 Analyzing Managerial Decisions: United Airlines Discontinuing United Airline flights from San Francisco to Washington D.C is not the best option in this case. In this case United Airlines need to view the calculation to make sure they are accurate and are reported accurately by WSJ. I also think the use of marginal analysis would be very beneficial in this case. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions.
* Of the $18400 Rhodes made in mortgage payments last year, $8000 was interest. The income statement lists 2008 interest paid as $32000, which means that there are other debts that required payments of $24000. If possible, accelerating payback on these loans can be very beneficial in the long run. * At industry average levels, wages of a similar business would be approximately $79000, or $11000 lower. * Wages, advertising and rent total %23.1 of sales in the average business, leaving %1.9 of sales for property taxes, interest, utilities, depreciation and other expenses.
If you do not have enough money to do certain things you would like to do, then you can use this planning process to prioritise your spending and focus on the money on the things that are most important to you. Once you create your first budget, you can begin to use it and get a good sense for how it can keep your finances on track. Doing this you can easily forecast which months your finances may be tight and which ones you will have extra money. You can then look for ways to even out the highs and lows in your finances so that things can be more manageable. Forecasting your budget gives you an idea how much money you will be able to save for important things like your vacation, a new vehicle, and an emergency savings account.
The longer they spend on road, the less time they spend on fishing. If you go from Houston down to Texas City Dike to go fishing then it only takes you about 30 minutes. All you have to do is go down I-45 South about 20 minutes’ drive and then take exit Texas City (exit-1764) and drive straight about 10 more minutes to Texas City Dike. By taking Texas City exit, you also can avoid traffic-jam on I-45 South. On weekends, you have to pay $5 for a car to get in the dike.
They expect that the extra tables will add between $2,000 and $5,000 to the restaurant’s monthly revenue. The bank is willing to let the business have an intermediate-term loan of $50,000 for five years, at an interest rate of 6.5 percent. Calculate the monthly payment, and explain whether taking this loan is a smart business decision.
Capital is mobile: when it is taxed heavily here, it flees somewhere else, meaning lower investment and employment in the United States, and because capital income taxes discourage investment or drive it overseas, they generate little if any tax revenue. Bush's tax cut substantially increased economic growth, boosted the stock market, and increased business investment. The jewel of Bush tax plan was the elimination of the dividend tax on individuals. Another key economic growth provision of the tax plan was the acceleration of income tax rate reductions. According to economic experts, if fully implemented, the Bush tax cut would increase stock values immediately by 5% to 15% and would reduce the cost of capital for businesses by 10% to 30%, depending on the industry.
Question 72 (Ch. 2): Latrell recently used his Delta Skymiles to purchase a free roundtrip ticket to Milan, Italy (value $1,200). The frequent flyer miles used to purchase the ticket were generated from Latrell’s business travel as a CPA. Latrell’s employer paid for his business trips, and he was not taxed on the travel reimbursement. Use an available tax research service to determine how much income, if any, does Latrell have to recognize as a result of purchasing an airline ticket with Skymiles earned from business travel Response: According to an article by Greg Hamel, The Internal Revenue Service lets business owners deduct the cost of various business travel expenses on their income tax returns, but airline tickets purchased with frequent flier miles are not a tax deductible expense.
Vacations nowadays a very different from the 50s. A vacation now is a trip to Paris, Hawaii, or Cancun. They are more elaborate and we can book a hotel, and flight months before the trip. Eating out isn’t a luxury; it’s what everyone does now. There are many differences from the 1950’s and present but everything we have now is influenced by the