3b. A company made an additional (incremental) income of $10,000 during the last week of the year. This extra income is subject to a federal tax rate of 21% and a 10% flat state tax. What is this company's federal tax liability?
Q: How are the unendorsed HO-3 and the HO-5 similar? А. Both are designed to cover condominiums. В.…
A: HO-3 and HO-5 Homeowner insurance policy are insurance policies which gives coverage to a flat or…
Q: Kinston Industries just announced that it will cut its dividend from $3.00 to $2.00 and use the…
A: Answer - Step 1 - Calculation of Cost of Equity - Stock Price = Dividend / (Cost of Equity -…
Q: In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat.…
A: i) If Interest Rate is 11% Present Value = Future Value/ ( 1 + Interest rate )n = 30,000/(1.11)8 =…
Q: ackson Inc. and Simon are two identical firms operating in identical markets. Jackson is unlevered…
A:
Q: ermine the amount of each payment?
A: Monthly payment refers to the amount which is due to be paid at regular intervals for some…
Q: NO. 4 Cash Break-even The production data and other related information of ROLLY Processing Company…
A: Cash Contribution ratio is simply calculatedby reducing cash variable cost from cash sales. Cash…
Q: A man receive 125,000 php credit for his old car when buying a new model costing 875,000 php. What…
A: When a number of payments of equal amounts of money at equal intervals of time for a fixed period is…
Q: Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: increases the unit variable cost by $18 per unit but it does not have any fixed costs. The company…
A: Operating income = total revenue - total variable costs - total fixed costs. We will now use the…
Q: What is the approximate return on a 5-year market-linked guaranteed investment certificate (GIC)…
A: Rate of return is percentage return achieved over the investment over the given period of time.
Q: Sainsbury is financed by both debt and equity. calculate the weighted average cost of capital (WACC)…
A: To specify:Calculation of weighted average cost of capital
Q: A 100,000 SF office building has average rents of $30 per SF per year for a full-service gross…
A: An operating expense, also known as an operational expense, operational expenditure, or opex, is a…
Q: . The Central Bank of the Bahamas pegs the Bahamian Dollar to the United States Dollar at a price of…
A: Given, The information regarding the Central Bank of the Bahamas pegs the Bahamian $ to the United…
Q: What simple interest rate is equivalent to 5% compounded quarterly if money is invested for 10…
A: Concept. 1. Simple interest formula. SI = P × N × R…
Q: Year 1 Sales (Revenues in $) Cost of Goods Sold (50% of Sales) Depreciation EBIT 100,000 50,000…
A: NPV NPV is a capital budgeting tool to decide on whether the capital project should be accepted or…
Q: HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of $55,000.…
A: The periodic payments accumulate interest which is added to the original deposit. The result is that…
Q: Suppose you decide to wait 5 years to save up before buying the house. You are able to put a down…
A: A loan is a type of debt that an individual or other entity incurs. The lender, who is typically a…
Q: Ataxia Fitness Center is considering an investment in some additional weight training equipment. The…
A: Payback period refers to the length of time or amount of time that it takes for recovering the cost…
Q: A. Exercise practice 1. What nominal rate compounded quarterly is equivalent to 12% compounded semi…
A: As per the answering guidelines, in case of multiple questions we have to solve the first question…
Q: A large profitable corporation is considering a capital investment of $50,000. The equipment has a…
A: After tax cash flow for Year 2 can be calculated by using this equation After tax cash flow for…
Q: 000 1000 1500 3000 $2.000
A: Future value is amount of deposit made and also interest accumulated over the period of time of…
Q: (C) Calculate the yield-to-maturity (YTM) and current yield for each of the bonds below. Coupon rate…
A: YTM or the yield to maturity is the the return earned when the bond is held to maturity. It can be…
Q: Keating Hospital is considering two different low-field MRI systems: the Clearlook System and the…
A: The difference between the present value of cash inflows and outflows over time is known as net…
Q: Mr. Harrington had a new heating system installed in his office. The balance owing to the heating…
A: Here,
Q: capital (WACC;) if it uses retained earnings as its source of common equity? Do not round…
A: WACC (Weighted Average Cost of Capital): It is known as the firm's average cost of capital and is…
Q: 2. Rearden Metal needs to order a new blast furnace that will be delivered in one year. The…
A: NPV is the difference between Present Value of cash Inflows and Initial Investment.
Q: rate is 30% and the after-tax cash flow from sale of the property at the end of year 10 is expected…
A: The process through which a company evaluates possible big projects or investments is known as…
Q: fund is to be set up for an annual scholarship of $5000. If the first payment is due in three years…
A: Solved using Financial Calculator FV = 5000 N = 3 years * 4 = 12 I/Y = 6.2/4 = 1.55 CPT PV = -…
Q: 3. You are saving for retirement. To live comfortably, you decide that you will need $2.5 million by…
A: Annuity payment concept could be leveraged for an accumulation of the desired corpus during the…
Q: What is the present value of a $90,000 annual annuity for 10 years with an additional $1,000,000…
A: The present value of investment is the sum of present value of annuity and the present value of…
Q: Given the information below for HooYah! Corporation, compute the expected share price at the end of…
A: Given: Year 2014 2015 2016 2017 2018 2019 Price $22.00 $58.50 $130.00 $207.00 $97.00 $27.50…
Q: ase solve within 15 minutes I will give thumbs up to you)
A: Given, Price of car = $12,000 Down payment = 25% =…
Q: A bank advertises Annual Percentage Rate (APR) of 14% compounded monthly for loans. Determine the…
A: APY is calculated as the effective annual rate of return or the actual rate of return charged after…
Q: uired: Determine the projected sales for June and July 2019 for the two pro sand pesos.
A: The amount of revenue a firm intends to make at some time in the future is known to as a sales…
Q: Having finally entered the working world, Troy took out an $863,000 loan at 3.60% interest…
A: Solution:- When a loan is taken, it is repaid with interest. The original amount of loan is called…
Q: An annuity with a cash value of $12,000 pays $2,050 at the beginning of every six months. The…
A: Annuity: An annuity is the series of payments which is received or paid for a certain period of…
Q: Obtain information on the following two funds: Colonial First State Developing Companies Fund…
A: An investor is someone who invests money in the hope of making a profit or gaining an advantage in…
Q: On January 1, 2017, Anchor Company signed a 12-year lease for warehouse space. The entity has an…
A: When the present value of lease payments is substantially equal to the fair value it is known as an…
Q: Semistrong Efficiency If a market is semistrong form efficient, is it also weak form efficient?…
A: A semi-strong form of market efficiency exists when security prices already reflect all publicly…
Q: company has a policy of requiring a rate of return on investment of 16%. two investment alternatives…
A:
Q: Your client has the choice of two alternative property investments, whose cash flows are set out as…
A: Concept. Npv is capital budgeting tool. It is used to evaluate performance of projects or to make…
Q: Required information Exercise 12-8 (Algo) Payback Period and Simple Rate of Return [LO12-1, LO12-6]…
A: For calculating the payback we will first need to calculate the adjusted annual cash flow by adding…
Q: Consider a 2-year CDS. Assume the conditional default probability is 7% in year 1 and 12% in year 2.…
A: A credit default swap (CDS) is a financial swap arrangement in which the CDS seller compensates the…
Q: 20,000 issue of twelve-year bonds redeemable at par offers 7.9% coupons payable quarterly. What is…
A: Price of bond is present value of coupon payment and present value of the par value of bond…
Q: Compute the 5-month moving average and 7-month moving average of the data below.
A: Moving average is a technique used to analyze data points in a data set. The moving average for one…
Q: Bilbo Baggins has just purchased a home and taken out a $400,000 mortgage. The mortgage has a…
A: The monthly payment amount can be calculated with the help of present value of annuity function
Q: purchased a 10-year $200,000 variable annuity that based its rate of return the performance of a…
A: Th amount to be received from the annuity each month depends on interest rate earned by the fund…
Q: Wila is a risk-analyst at Deli Bank (DB), a commercial bank with operations in Zambia. DB is…
A: Generally, the risk involved in an investment is measured by the volatility. Volatility tells about…
Q: How does shareholder value relate to capital structure?
A: The combination of various types of external funds, known as capital, used to finance a corporation…
Q: You plan to retire in exactly20 years. Your goal is to create a fund that will allow you to receive…
A: Here, Amount of annuity = $200,000 Interest rate = 11% Years to death after retirement = 30 years…
Step by step
Solved in 2 steps
- Grevilla Corporation is a manufacturing company. The corporation has accumulated earnings of $950,000, and it can establish reasonable needs for $400,000 of that amount. Calculate the amount of the accumulated earnings tax (if any) that Grevilla Corporation is subject to for this year. $_____________Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)3a. A company made an additional (incremental) income of $10,000 during the last week of the year. This extra income is subject to a federal tax rate of 21% and a 10% flat state tax. What is this company's state tax liability?
- 3 A company made an additional (incremental) income of $10.000 during the last week of the year. This extra income is subject to a federal tax rate of 21% and a 10% flat state tax. What is this company's effective tax rate? Edit Format Table3a. A company made an additional (incremental) income of $10,000 during the last week of the year. This extra income is subject to a federal tax rate of 21% and a 10% flat state tax. What is this company's state tax liability? Edit Format TahleThe XYZ, Inc. reported $50 million of taxable income. Its federal tax rate was 21% (ignore any possible state corporation taxes). What is the company’s federal income tax bill for the year? Question 1 options: a) $11,500,000 b) $10,500,000 c) $12,100,000 d) $11,100,000
- Goose Industries faces the following tax schedule. Last year the company realized $15,000,000 in operating income (EBIT). Its annual interest expense is $7,500,000. (1) Compute the company’s income taxes payable? Use the tax rate table below. (2) What was the company’s net income for the year? If a corporation's taxable income is It pays this amount on the base of the bracket Plus this percentage on the excess over the base (marginal rate) Average tax rate at top of bracket Up to $50,000 $0 15% 15.0% $50,000 – $75,000 $7,500 25% 18.3% $75,000 – $100,000 $13,750 34% 22.3% $100,000 – $335,000 $22,250 39% 34.0% $335,000 – $10,000,000 $113,900 34% 34.0% $10,000,000 – $15,000,000 $3,400,000 35% 34.3% $15,000,000 – $18,333,333 $5,150,000 38% 35.0% Over $18,333,333 $6,416,667 35% 35.0% (1) $2,436,000 (2) $4,950,000 (1) $2,550,000 (2) $4,950,000 (1) $2,550,000 (2)…ABC Corporation provides you with the following information for the 2020 tax year, which was the company’s first year of operation:Book Income Before Taxes $100,000,000Book Depreciation $ 5,000,000MACRS Depreciation $ 7,500,000Foreign Sourced Income $ 40,000,000Assume a federal tax rate of 21%, disregard state taxes.a. Calculate federal taxable income.b. Calculate the federal tax payable and federal tax expense.c. Given your answer above in b., is a deferred tax asset or a deferred tax liability created? Provide the journal entry needed to reflect this.In 2010, Garner Grocers had taxable income of -$2,000,000. The corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code’s carry-forward provision. In 2021, Garner has taxable income of $1,000,000. What is the amount of taxes the company paid in 2021? a. $20,000 b. $8,000 c. $0 d. $90,000 e. $586,500
- this company. 1. Pretax financial income for 2021 is $100,000. 2. The tax rate enacted for 2021 and future years is 20%. 3. Differences between the 2021 income statement and tax return are listed below: a. Warranty expense accrued for financial reporting purposes amounts to $7,000. Warranty deductions per the tax return amount to $2,000. b. Gross profit on construction contracts using the percentage-of-completion method per books amounts to $92,000. Gross profit on construction contracts for tax purposes amounts to $67,000. c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to $60,000. Depreciation of these assets amounts to $80,000 for the tax return. d. A $3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income. e. Interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. Taxable income is expected for the next few years. (Assume (a) is…Give typing answer with explanation and conclusion 6. Thornton, Inc., had taxable income of $131,387 for the year. The company's marginal tax rate was 35 percent and its average tax rate was 22.8 percent. How much did the company have to pay in taxes for the year?Suppose that you are an individual taxpayer who is self-employed. For the year, you projected a 10% increase from last year's gross receipts of P2,000,000. There is also an 8% increase in total cost and expenses of P900,000. In the first quarter of the year, would you signify your intention to be taxed at 8% optional gross income tax (OGIT)? Justify your answer 2. Debbie Corporation (DC) is one of the leading domestic manufacturers in the country. For the year, it has gross sales of P800,000,000, cost of sales of P160,000,000, and other expenses of P120,000,000. It also earns P500,000 interest income from the bonds it holds in Myanmar. Suppose that you are the Chief Financial Officer (CFO) of DC. Now, choose one (1) action you will take to manage the tax of DC and discuss it