Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Chapter 13, Problem 12P
Your company paid employees who were eligible for work opportunity credit $25,000 last year. Of these wages, $21,000 is eligible for a tax credit of 40% of the wages. The remaining wages are eligible for a tax credit of 25% of the wages. The company’s wages expense must be reduced by the amount of the credit. If the company’s marginal tax rate is 21%, how does this affect your company’s taxes?
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suppose company has $13 in taxable income after consideration $6 of tax privileges (so, companyis tax sheild = $6). If alternative minimum tax (AMT) is 20%, calculate the minimum tax amount that company should pay.
1. An employee earns 35,000 a month. He receives his salary every 15th and 30th of the month. His conrtibutions and tax is being deducted fairly every cut-off.
A. How much is his gross earnings per cut-off?
B. How much is his withholding tax per cut-off?
C. Compute for his SSS, Philhealth, and PagIBIG every cut off.
D. How much is his net earnings every cut-off?
XYZ Corporation has a deferred compensation plan under which it allows certain employees to defer up to 35 percent of their salary for five years. For purposes of this problem, ignore payroll taxes in your computations. (Use Table 1.)
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
a. Assume XYZ has a marginal tax rate of 21 percent for the foreseeable future and earns an after-tax rate of return of 9 percent on its assets. Joel Johnson, XYZ's VP of finance, is attempting to determine what amount of deferred compensation XYZ should be willing to pay in five years that would make XYZ indifferent between paying the current salary of $17,700 and paying the deferred compensation. What amount of deferred compensation would accomplish this objective?
b. Assume Julie, an XYZ employee, has the option of participating in XYZ's deferred compensation plan. Julie's marginal tax rate is 37 percent, and she expects the rate to remain constant…
Chapter 13 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - What is the difference between effective tax rate...Ch. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Using a tax rate of 21%, determine the amount of...Ch. 13 - Using the tax rates in Table 13-2, determine the...Ch. 13 - Calculate the annual difference between the cash...Ch. 13 - Calculate the annual difference between the cash...Ch. 13 - Your company spent 5,000 last year on...
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