Joe makes $15 per hour and works 40 hours per week. 30-year mortgage interest rate of 6.25% and a monthly payment of $439.00 15-year mortgage interest rate of 5.25% and a monthly payment of $575.00 Down payment: 5% minimum Taxes last year were $375. Insurance is $250 per year. What you are looking for: 1. Can Joe afford the monthly payments with taxes and insurance for either a 30 or 15 year mortgage?
How would your answer differ (if at all) if the couple had AGI of $36,000 that was earned entirely byTim ? Answer The maximum amount of qualifying expenses is limited to $6,000 for two or more children. But, the amount should be reduced by the $1,800 that Martha received from her employer. So the total expenses are $4,200. Because their AGI was over $43,000, Tim and Martha are entitled to a credit equal to 20% of their expenses, or $840.
Question 1. a) How many parts should you purchase each time you place an order? R=800- ORDERING COST Annual carrying cost of capital= 20% .20 lost per dollar R= 50000 H= .80 r= .20 cost per dollar C= unit cost H=rC Qo= √2RS/H= √(2(50,000)(800)/.8) = 10,000 10,000 parts should be purchased each time an order is placed. (b) To satisfy annual demand, how many times per year will you place orders for this part? R/Qo= 50,000/10,000= 5 times per year Question 2: (a) Determine BIM’s total annual cost of production and inventory control. Q= 4 weeks supply = 1600 units R= 400 units a week= 20000 units/ year C= purchase cost per unit= $1250 X (1-.20)= 1,000 H= holding cost= rC= $200 per unit / year S= setup cost= 2000 + 93.75 = $2,093.75 Setups per year= R/Q= 20000/1600= 12.5 Annual setup cost= (R/Q)(S)=12.5X $2,093.75= $26,172 Annual Holding cost= (q/2)(H)= (1600 /2)X $200= $160,000 Total Annual Cost= Annual Setup Cost+ Annual Holding Cost Total Annual Cost= 26,172+160,000 BIM’S Total Annual Cost= $186,172 (b) Compute the economic batch size and the resulting cost savings.
3- Purchase the capesize and to be sold to the second hand market after 15 years. The decision will be made based on the NPV should the above scenarios give a positive value. The assumptions are that there will be a corporate tax rate of 35% and discount rate of 9% should operations are US based. The same conditions will need to be investigated if Hong Kong is the base of operations with no corporate tax rates. Analysis: 1- The average daily spot rate is expected to decrease next year, from $ 15,344 (2000) to $ 14,747 (2001), i.e.
Parents can top up the hours by paying themselves for any extra hours. Some 2-year-olds in England can also get free early education. You must be getting one of the following: • Income Support • income-based Jobseeker’s Allowance ( JSA ) • income-related Employment and Support Allowance ( ESA ) • support through part 6 of the Immigration and Asylum Act • the guaranteed element of State Pension Credit • Child Tax Credit (but not Working Tax Credit) and have an annual income not over £16,190 • the Working Tax Credit 4-week run on (the payment you get when you stop qualifying for Working Tax Credit) Children looked after by a local council are also entitled to a place. If your child’s eligible, you can start claiming free early education after your child turns 2. The date you can claim will depend on when their birthday is.
Shifting a portion of income to family members can also lower ones tax bill, you are allowed to give $12,000 per year to each recipient without incurring a gift tax but watch out for kiddie tax rules before considering this option. Claim your dependents on your taxes as it may mean $1k per each qualified child dependent showing up as a tax credit for the year. Credits are worth more than deductions since they directly lower ones tax liability dollar for dollar. Plan deductions by determining if taking them this year compared to next year would be more beneficial your
GAAP? Explain in detail. (TCO C) (TCO C) Blue Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 201X, included the following expense accounts. Accounting and legal fees $150,000 Advertising $125,000 Freight-out $65,000 Interest $80,000 Loss on sale of long-term investments $35,000 Officers’ salaries $200,000 Rent for office space $160,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department.
HOANG NAM VU z3486394 TUTORIAL HAND-IN QUESTION WEEK 3 Assume that Nominal interest rate is real interest rate. (i) The cost to Patrick of owning the lawn mower for a year. The cost to Patrick of owning the lawn mower for a year will be equal to : The Depreciation Cost + The interest rate cost = 5000 x 10% + 5000 x 6% = 500 + 300 = 800 (ii) User-cost as a decimal Patrick’s user-cost as a decimal = 800/5000 = 0.16 (iii) Suppose that Patrick’s father had given him the $5,000 for his birthday, is the nominal interest rate now irrelevant to the user cost calculation? Explain. Although Patrick does not have to borrow money from the bank when he has available fund received from his father, there is still opportunity cost associated with using money to buy the lawn mower instead of investing 5000$ in other financial products such as bond with interest rate larger or equal to 6%.
Opposed to a car, monthly cost of gas is about $200.00 per month, filling up an average of four times a month. In addition, car insurance would deduct another $150.00 from your monthly salary. Public transportation saves money and reduces pollution. Groceries would cost about $50.00 a month, not including eating out. Next is the average electricity bill of a single person is about $75.00.
If this project would cannibalize other projects by $1 million of cash flow before taxes per year. How would this change your answer to part a? c. Ignore part b. if the TR dropped to 30%, how would that change your answer to part a? a. [pic] b. b.