How much total income tax will Custom Craft Services and Jaron pay (combining both corporate and shareholder level tax) on the $200,000 of income if CCS pays Jaron a salary of $150,000 and distributes its remaining after-tax earnings to Jaron as a dividend? c. Why is the answer to part b lower than the answer to part a? ?
Record labels pay composers and publishers mechanical royalties. They try to cap mechanical royalty budgets at ten songs payable at 75% of the statutory rate ($.80 per song), which equals $.60 per song under the controlled composition clauses of recording contracts. Promotional Costs Major labels budget approximately 20% of annual gross income for promotion and selectively allocate the funds according to sales projections for each
Issues 1-. What are the tax consequences if Jean & Joseph create the corporation by transferring the Tricometer intellectual property and more than $10,000 of cash so that corporation can acquire the patent, trade name and trademark? 2-. What are the tax consequences if Jean & Joseph jointly acquire the patent, trade name and trademark; create the corporation with more than $10,000 cash; and license the patent, trade name and trademark to the corporation in return for royalties? 3-.
a. Hardaway’s AGI is $97,000, consisting of the $97,000 of taxable compensation he received from his employer. b. Hardaway’s AGI is $97,000 (the same as in part a), consisting of $100,000 of taxable earnings minus $3,000 for AGI deduction for the health insurance. 39. [LO 1] Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $24,000 from Counti Bank and paid interest of $1,440.
Again, note that the actual state rate is reduced by 25% to allow for the deductibility of state income taxes on the federal income tax return. If Dana’s state tax rate increases to 10%, corporate bonds are still superior to Treasury bonds. 50. [LO 1] At the beginning of his current tax year David invests $12,000 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $700 in interest ($350 every six months) from the Treasury bonds during the current
1: Tariffs encourage Americans to buy U.S.-made products. (Points: 13) I find this position to be valid. Tariffs are basically taxes on imports, thus making imported goods more expensive to buy (Nickels, McHugh & McHugh, 2008, p. 75). Protective tariffs are designed to raise the retail price of imported products so that domestic goods are more competitively priced (Nickels, McHugh & McHugh, 2008, p. 76). Therefore, if when a consumer enters a store and sees similarly priced products, one imported and one made domestically, they can choose a US made product without feeling as if they are overpaying for the same product.
That would be 125(C)=3000. That means that they could make 125 modern rocking chairs and have no lumber left. Now they could also make 100(f)+125(c) and have just enough lumber. By looking at the graph we can see that all they could make and still have enough lumber is any amount within 200 to 250 ranges. Anything outside the range cannot be made using the lumber that the company has on hand.
2. (TCO A) Garrett Manufacturing owns 10% of the common stock of Timberline Corporation and used the fair-value method to account for this investment. Timberline reported a net income of $110,000 for 20X2 and paid dividends of $50,000 on October 1, 20X2. How much income should Garrett recognize on this investment in 20X2? (Points : 5) | $50,000 $16,500 $25,500 $7,500 $5,000 | Question 3.
5. Question: (TCO 9) It costs Lannon Fields $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 2,000 units at $18 each. Lannon has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?
Our government has borrowed, used, and selfishly contained surplus from the modern day American for so many years, that our country is in the brinks of one day collapsing all around us. The government debt has been brought upon us through raising taxes, increasing school tuition rates, to everyday groceries to medical expensive. While the politicians take