Chapter 6 Individual Deductions SOLUTIONS MANUAL Problems 37. [LO 1] Hardaway earned $100,000 of compensation this year. He also paid (or had paid for him) $3,000 of health insurance. What is Hardaway’s AGI in each of the following situations (ignore the effects of Social Security and self-employment taxes)? a. Hardaway is an employee, and his employer paid Hardaway’s $3,000 of health insurance for him as a nontaxable fringe benefit.
J. Premium offers outstanding- Current Liability K. Discount notes payable- Current Liability L. Employee payroll deductions unremitted- Current Liability M. Current maturities of long-term debts to be paid from current assets- Current Liability N. Cash dividends declared but unpaid- Current Liability O. Dividends in arrears on preferred stock- Footnote disclosure P. Loans from officers- Current Liability 13-2. Accounts and Notes Payable * The following are selected 2012 transactions of Darby Corporation. Sept. 1 | Purchased inventory from Orion Company on account for $50,000.
Now, Variable Expenses = $18.75 Thus, Unit CM= $30 - $18.75 = $ 11.25 CM ratio= unit contribution margin/selling price = 0.375 Unit sales to break even= Fixed Expenses/Unit CM 13,3333 pairs of shoes Dollar sales to break even= Fixed expenses/ CM ratio = $150000/0.375 = $400,000 in sales 5. Refer to the original data. As an alternative to (4) above, the company is considering paying the store manager 50 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be the shop's net operating income or loss if 15,000 pairs
7-6, 7-7, and Concept Summary 7-2 | | | | | Question 2 0 out of 3.33333 points | | | Jimmy owns 100% of Robin Corporation and 100% of Oriole Corporation. Both corporations have substantial E & P. Jimmy sells 40 shares (40% of his interest) in Robin (basis of $300,000) to Oriole for $400,000. Jimmy purchased the stock in Robin six years ago. Jimmy has:Answer | | | | | Selected Answer: | [None Given] | Correct Answer: | Dividend income of $400,000. | Response Feedback: | Sections 302 and 304 would cause the entire $400,000 to be a taxable dividend.
Susan Hansen, an Admissions Director at liberal arts college in the East, has recommended to her president that the college needs to increase its tuition and reduce financial aid to students in order to solve the school’s financial problems. Last year, the college enrolled 400 new students who each paid an effective tuition of $15,000 totaling $6,000,000. Hansen projects with her plan of charging an effective tuition of $25,000 (by increasing tuition fees and lowering the amount of financial aid offered), the college will enroll 600 new students (of equal or better quality), totaling $15,000,000. Law and Elasticity of Demand Demand curves historically slope downward, which means individuals purchase less (or certainly no more) of a product as the price increases (Brickley, Smith & Zimmerman, 2009). This negative slope of the demand curve is known as the law of demand and has proven to be a practical assumption for managers when determining the price of a product.
Does Joe have enough in savings to pay for the down payment and all of the closing costs? Solution Plan: Complete the following questions based upon the information in the video and other information provided in the worksheet. 1. Joe figures that with overtime he will average 40 hours a week for 52 weeks a year. If his current wage is $15.00 per hour, how much will he make per year?15*40*52= $31,200.00 annually 2.
If the student already has a Bachelor’s degree, they can earn a paralegal certificate. Finally, some employers hire entry-level paralegals without any experience and train them. (McKay, 2013). Salary expectations for paralegal are very lucrative, between $29,800 to $75,700. The average salary is $50,000 per year (Crowder, 2011).
A person may spend a few years of their life paying their loans off from college but in the end it is worth every penny spent. In 2007, the U.S. Census Bureau’s median earnings for full-time workers at least 25 years old are shown as followed: high school diploma, $32, 500; associate’s degree, $42,000; bachelor’s degree, $53,000; master’s degree, $63,000; and professional degrees, $100,000+. By looking at those numbers, I would have to say that a college degree should be at the top of anyone’s priority list. Without a college degree, a person is limited to what kind of job he/she can hold. With the way the world is changing, most jobs out there are requiring a college degree to even be qualified for the job.
$30,000 of depreciation on the equipment used to manufacture the parts. c. The supervisor's salary of $25,000, which would be avoided if the part is purchased from an outside supplier. d. $15,000 in rent from leasing the production space to another company if the part is purchased from an outside supplier. status: correct (1.0) correct: b your answer: b feedback: Correct. ________________________________________ 2 The following information pertains to the Norfolk Company's three products: Product B's production is increased to 700 units per year but B's selling price on all units of B is reduced to $8.00.
Edward Lampert, Chairman furthermore the controlling shareholder of Kmart chose to secure Spears for 11 billion dollars in 2004. After insolvency, Kmart acquired trusts after the conclusion or offering of more than 600 stores, which started the securing of Spears. The operations of Kmart and Spears would consolidation and the organization would be named "Singes Holdings Corporation". The administration anticipated that with both the organizations breaking down condition, the organization expenses joined would fall by $500 million every year in three years. This will likewise make