Leasing the building will allow John to write off the payments as rent expense. However, if he has the capital to purchase the building, it would be considered an asset and he would be allowed to depreciate over the life of the building. This decision would have to weigh factors such as: capital investment, loan options if no capital investment, and expected future profits and expenses of the business. 2. Jane Smith tax issues: Issue a) What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for federal income tax purposes?
Problems and Cases 5. C. Colbert bought an apartment house with $60,000 cash and a mortgage loan of $100,000. The loan was made at an interest rate of 10.5 percent and requires annual payments for 25 years. What are the payments on this loan? Answer: $944.18 7.
Box G7 or Box G18 Activity 5.7 In Activity 5.1 you used the BAS worksheet to complete the quarterly BAS for The Nice Scent Shoppe. Now we will give you some further information for that quarter and you are to complete the BAS Summary report using Option 2 for PAYG income tax instalment. 1. The FBT instalment has been notified as $2400. The firm requires this to be varied to an annual FBT payable of $12 000.
15. Question: : (TCO D) On January 1, Martinez Inc. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Martinez uses the effective-interest method of amortizing bond premium.
The electricity cost was charged on a quarterly basis and charged back to each department on a quarterly basis also. The quarterly costs were September 2013 $13000, December $11000, March $10000 and June $11000. Retail Banking make payment of 100% of the cost up front as they are the controlling department. Retail Banking then process an adjusting entry to Commercial Banking’s cost centre for 30% of the expense and an adjusting entry to Financial Planning’s cost centre for 10% of the expense which together with its 60% obligation brings the total to 100%
You may want to check the links to the two most recent Announcement Dates for further information. Question 2 Visit: www.census.gov/main/www/a2z/I Go to this site and click on "Income Data." Report the change in Household Income for the last year to year period listed. Also view the data to see how this has been allocated by race. What do you learn from these demographics?
Investigating How Age, Number of Bedrooms, and Square Footage Determine House Prices Course Project Part C Math533 – Applied Managerial Statistics Contents 1. Overview of the Problem and Questions...…………………...................................3 2. List of Variables…………………………………………………………..…………......3 3. Sources of Data……………………………………………………………………........4 4. Data……………………………………………………………………………………….5 5.
They first compute the likely forecasts through formulas and statistics, then they talk about it and arrange according to managers’ feelings. They finally use historical forecast errors to correct forecasts, assuming there should be approximately the same level of error on the same category of items from one year to another. 2. What item costs and revenues are relevant to the decision of how many units of that item to stock? Cost of overage, cost of underage, mean and standard deviation of sales are useful to compute the optimal service level.
Why are capital gains and dividends taxed at a different rate than ordinary income? Has this always been the case? Discuss the economic and social implications the changes in tax rates for capital gains and dividends. Do you think the existing policies are fair? Why or why not?
If we let B= the balance, it would look like: B+ (.05) B B (1+.05) B (1.05) In other words, each year the existing balance is multiplied by 1.05. This repeated multiplication by the same number tells us we have a geometric sequence. First, we need to identify. N= the number of terms N= 10 R= the common ratio R= 1.05 A1= the first term A1= 500(1.05) =525 the balance at the end of 1 year In a savings account, the total balances at the end of each year form the sequence, so we don’t need to add up all the terms in the sequence. We just need to find out what the balance is at the end of 10 years, so we are look for the value of A10.