However, if the expenses incurred while working on this case were not deducted previously, then they would be non-taxable. 1(c) What is my determination regarding reducing the taxable amount of income for both the $300,000 and the $25,000? As the full amount of the $300,000 was received after the closure of the case in a lump sum, then there is little to do in minimizing the taxes other than taking full advantage of the deductions allowed for businesses. 2(b) Mrs. Smith, your first question is regarding what the different tax consequences would be on paying down the current mortgage and assuming a new mortgage for Federal income tax purposes. For the sales of the current home, the IRS states that married taxpayers can exclude up to $500,000 of gain upon the sale of the residence.
Tesco Case Study Requirement 1 A) Refund Tesco earned for the 12-month period ending August 31, 2014: Tesco earns a refund percentage based off of total purchases within a twelve month period. When determining the refund percentage, anything above 3.7 billion in purchases qualifies for a 10 percent refund, and Tesco had total purchases of 3.75 billion at £2 per unit, which equals £7.5 billion in sales for the period ending August 31, 2014. 10 percent of £7.5 billion would give the company a refund of £750 million. However, the refund was settled with a cash amount of £800 million. i) Compliance with U.S. GAAP for CPC: CPC was incorrect in their treatment of the sales allowance.
Sales units Sales Selling price: $250 100,000 400 Selling price: $250(0.1)= $275 137500 Variable cost: $160 variable cost: $160 Fixed cost: 22500 Fixed cost: 22,500(0.1)= 24750 1. Compute the company’s current break-even point in units and dollars? Break even Units: Fixed expense/CMUnit 22500/90 = 250 CM: 250-160= 90 Dollars: Fixed expense/ Cm ratio 22500/.36= $62500 CM Ratio: units 90/ $250 selling price = .36 2. What is the company’s current margin of safety in Units, dollars and percentage? Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted.
The tax on the year 1 deprecation would then be $28,050 * .40, which equals $11,220. After adding $11,020 to the $15,000 in savings, the cash flow for year 1 would equal $26,220. For year 2, the depreciation expense would equal $85,000 * .45, or $38,250. The tax on the year 2 deprecation would then be $38,250 * .40, which equals $15,300. After adding $15,300 to the $15,000 in savings, the cash flow for year 2 would equal $30,300.
They had child care costs for their dependant daughter, Tara. Form 2441, Child and Dependant Care Expenses, is the appropriate form to review and calculate the deduction for the credit available to them. Petersan’s child care costs for 2010 were $10,320. However, the IRS limits the allowable expense for one qualifying child to $3,000 or the income from the lowest wage earner. For the Petersan’s their allowable expense will be $3,000.00 for their one qualifying child, and based on their AGI of $90,916.00, they are limited to a $600.00 ($3,000 x .20) credit.
3a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $45,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $36,000. There is no loan period for the $45,000 car that would be under our $500
Hospitals are classified as urban, hospitals within a Metropolitan Statistical Area (MSA), or rural, hospitals located outside an MSA. I believe that local labor rates directly affect healthcare costs. With this in mind, the Health Care Financing Administration (HCFA) computes new wage averages each year from Medicare cost reports four years earlier. This is important because if hospitals wages in particular market are lower than the national average, payments will be reduced to reflect overpayment for a cycle. If the wages are above the national average, payments will be increased to reflect underpayments for a
Solutions to Week 1 HW Chapter 1 E14. [LO 5]. Incremental revenue per day $2,500 Less incremental costs: Labor $700 Parts 500 Transportation 100 Office staff 200 1,500 Incremental Profit per Day $1,000 Opportunity cost = $1,000 per day 52 days = $52,000 Rent and depreciation do not enter into the calculation of the opportunity cost since these costs are not incremental (they will be incurred whether or not Ken decides to stay open on Saturday). P2. [LO 5 and 6].
The R^2=86.52%, while R=0.80. From the Analysis of Variance, we saw the P Value= 0.000 the F Value= 85.6452. When we tested with the significance level of 5% we concluded the P value was less than, therefore we concluded to reject the null hypothesis for this level. We also performed the 95% Confidence level to be ($0.009and $0.015) for B1. In addition, we can estimated that a customer with a $4000 credit balance to have an income in between (41.7665, 46.6130) in $1000 using the 95% CI confidence levels to calculate the income level.
This means that health insurance plans in California will be prohibited from modifying premiums based on how much it costs to cover enrollee care. Taking that into consideration, we should analyze if California’s health insurance industry will go insolvent if rate review standards overlook the impact of health care costs. Sixty-five percent of working families receive their health insurance through employer-sponsored plans. During the last decade, their premiums have increased by 104%. On the other hand, during that same time period, health care costs