Problem 18-10 Calculating Net Pay and Spendable Income [LO18-6]Assume your gross pay per pay period is $6,700.00, and you are in the 33 percent taxbracket. Calculate your Taxable pay and spendable income if you save $670.00 perpay period in a tax-sheltered annuity.Note: Do not round intermediate calculations. Round your answers to the nearestwhole dollar.Answer is complete but not entirely correct.Taxable Pay and Spendable IncomeTaxable pay$4,040Spendable income$3,819x

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Answered: Problem 18-10 Calculating Net Pay and…

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 14.20EX

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LO.2 Oak Corporation has the following general business credit carryovers. If the general business credit generated by activities during 2019 equals 36,000 and the total credit allowed during the current year is 60,000 (based on tax liability), what amounts of the current general business credit and carryovers are utilized against the 2019 income tax liability? What is the amount of unused credit carried forward to 2020?
Question 2 Suppose you have a credit card with a 14% interest rate with monthly compounding, a home equity loan with a 7% interest rate with monthly compounding, and a bank savings account paying a 5% interest rate with annual compounding (all interest rates are quoted as Annual Percentage Rates). Your income tax rate is 40%. Only the interest on the savings account is taxable, and only the interest on the home equity loan is tax-deductible. What is the effective after-tax interest rate of each instrument, expressed as an annual rate? Suppose you are considering purchasing a new car and are offered a car loan with a 4.8% interest rate (Annual Percentage Rate) and monthly compounding (which is not tax-deductible). Should you take the car loan?
Question 8.18 A perpetuity-due pays 1 per year, and its present value is 26. An increasing perpetuity-due pays X immediately, 2X in one year, 3X in two years, and so on. The present value of the increasing perpetuity-due is 4,732. What is the amount of the 8th payment made by the increasing perpetuity-due? A 56 В 58 С 61 D 63 E 64
What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $90 per year? O a. 6.47% O b. 3.04% O c. 6.08% O d. 12.95% O e. 12.16%
Question 8 2.75 points Save Answer Jason's gross pay for the week is $1900. His year-to-date pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is 5% and that Jason's year-to-date pay has not yet exceeded the $7000 cap. What is the total amount of payroll taxes that his employer must record as payroll tax expenses? (Do not round your intermediate calculations. Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) O $117.80 O $240.35 O $259.35 O $107.35
Knowledge Check Question 22 Austin V Espate Nicole is planning for retirement. She deposits S825 at the end of each year in an ordinary annuty that pays 4% interest, compounded annually. Answer each part. Do not round any intermediate computations nor answers. If necessary, refer to the lat.otinaocialformulas (a) Find the totat value of the annuity at the end of the 1" year. (b) Find the total value of the annuity at the end of the 2 year (c) Find the total value gf the annuity at the end of the 3 year.
What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $4,800? a. $20.28 b. $292.96 c. $312.00 d. $156.00 e. $738.46
QUESTION 2 Billy Bourne makes $58972 annually. How much does Billy pay for his E.l. premium out of each paycheque if he is paid semi- monthly? Use 2022 rates. 4
Q8 Income tax Everyone can earn a certain amount of money without paying tax. This is called a Personal Allowance. They must pay tax on any earnings over this allowance. £11 850 Income tax Personal Allowance, 2018/2019 This formula gives the amount of Income tax a person pays in a year T = 0.2 (y - p) where T = income tax for the year y = money earned per year p = Personal Allowance A caterer earns £1375 per month. How much income tax will she pay for the year?
Required information Problem 10.039 - Retirement account calculations In wisely planning for your retirement, you invest $35,000 per year for 20 years into a 401K tax-deferred account. Assume you make a real retum of 10% per year when the inflation rate averages 3.4% per year. Problem 10.039.a Future dollars in retirement account How many future dollars will you have in the account immediately after your last deposit? You will have $ future dollars in your account immediately after your last deposit.
Qd.2
Problem 1-15 Calculating the Future Value of an Annuity [LO 4) What amount would you have at age 65 if you contributed $260 a month starting today at age 25 and you can earn 6 percent APR compounded monthly on your investment? If you were to delay this savings for 10 years when you're 35, how much would you then have at 65? (Do not round intermediate calculations. Round your final answer to 2 decimal places. Omit the "$" sign in your response.) Annual paynent at the end of 65 years, startine at 25 years Annual payment at the end of 65 years, starting at 35 years

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