Answers
Answer:
$874
Explanation:
Calculation for Simon's additional Medicare tax
Based on the information given we were told Simon has a MAGI of the amount of $223,000 in which part of it is for wages income of the amount of $185,000 ($223,000 -$38,000)
while the amount of $38,000 is the net investment income which means that Samson MAGI is below the threshold limit of the amount of $200,000, therefore tax rate of 3.8% tax will be applied.
Now let calculate the additional Medicare tax
Additional Medicare tax = ($38,000-$15,000)*3.8%
Additional Medicare tax =$23,000*3.8%
Additional Medicare tax = $874
Therefore Simon's additional Medicare tax is:874
Final answer:
Simon's additional Medicare tax is $207. This is calculated by taking 0.9% of his income that exceeds the $200,000 threshold for single filers, which equals to $23,000 in Simon's case.
Explanation:
The student, Simon, needs to calculate his additional Medicare tax. As his MAGI, or Modified Adjusted Gross Income, is $223,000, he surpasses the threshold for single filers, which is $200,000. Therefore, the additional Medicare tax would apply to his income above this limit.
The Additional Medicare Tax is set at 0.9%, and it applies to the amount that exceeds the threshold. For Simon, this excess is $23,000 ($223,000 - $200,000). So, Simon's Additional Medicare Tax is 0.9% of $23,000, which calculates to $207.
In the context of Medicare taxes, it's important to remember that the tax rates are designed to increase as the income increases. Unlike the Social Security tax, there is no upper ceiling on the Medicare tax. The purpose of Medicare is to provide health care for the elderly.
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Related Questions
Dennis Kozlowski, John Thain, and Raj Rajaratnam are former CEOs mentioned in the text that have been involved in corporate governance problems to one degree or another. What did Dennis Kozlowski do that was considered inappropriate behavior
Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell’s total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $45,000 Inspections 350 150 $75,000 2,100 labor hours 1,900 labor hours Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much "assembly cost is assigned to titanium racquets"?
ne year ago, a U.S. investor converted dollars to yen and purchased 100 shares of stock in a Japanese company at a price of 3,150 yen per share. The stock's total purchase cost was 315,000 yen. At the time of purchase, in the currency market 1 yen equaled $0.00952. Today, the stock is selling at a price of 3,465 yen per share, and in the currency market $1 equals 145 yen. The stock does not pay a dividend. If the investor were to sell the stock today and convert the proceeds back to dollars, what would be his realized return on his initial dollar investment from holding the stock
Swifty Company purchased equipment for $256,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 48,000 units and estimated working hours are 20,400. During 2020, Swifty uses the equipment for 600 hours and the equipment produces 1,000 units. Required:Compute depreciation expense under each of the following methods. Swifty is on a calendar-year basis ending December 31. a. Straight-line method for 2020 $enter a dollar amount. b. Activity method (units of output) for 2020 $enter a dollar amount. c. Activity method (working hours) for 2020 $enter a dollar amount. d. Sum-of-the-years'-digits method for 2022 $enter a dollar amount (e) Double-declining-balance method for 2021
Answers
Answer:
stock price is below $50
Explanation:
given data
price of a stock = $64
strike price = $60
option price = $10
solution
we know here that stock sell for $60 and pay for $10
so that here price of stock is
stock price = $60 - $ 10
stock price = $50
and net profit will be
net profit = $10 - $10
net profit = 0
so that we can say stock price is less than $50 for trader for making profit 0 or greater than 0.
so price will be below than $50
b. Journalize the adjusting entry on December 31 for the amortization of the patent rights.
c. Journalize the adjusting entry on December 31 for the impaired goodwill.
Answers
Answer:
April 1
Debit : Patent $1,500,000
Credit : Cash $1,500,000
December 31
Debit : Amortization $125,000
Credit : Accumulated Amortization $125,000
December 31
Debit : Impairment loss $6,000,000
Credit : Accumulated Impairment loss $6,000,000
Explanation:
Both the Amortization and Impairment loss reduce the value of assets. They are therefore expenses accounted in Income Statement.
Amortization : is the loss of value of an asset due to passage of time.
Amortization Expense = (Cost - Residual Amount) ÷ Useful Life
= ( $1,500,000 - $ 0) ÷ 12
= $125,000
Impairment loss : is the excess of the Carrying Amount of an Asset over its Recoverable Amount( Higher of Value in Use and Fair Value less Cost to Sell)
Final answer:
The student’s questions are regarding three transactions under business accounting: the acquisition of a patent, amortization of the patent rights, and impairing goodwill. Each requires different treatments in journalizing and adjusting entries.
Explanation:
The subject pertains to accounting and how to journalize transactions in business. Thus, it falls under the Business category and the complexity suggests it's at the College level.
To record the acquisition of the patent worth $1,500,000, you would first debit (increase) the Patents account and then credit (decrease) the Cash or Payables account. This aligns with the concept accounting for patents.
To journalize the adjusting entry for the amortization of the patent rights on December 31, divide the $1,500,000 over its 12 years useful life, which calculates to $125,000 each year. On December 31, debit (increase) the Amortization Expense account for $125,000 and credit (decrease) the Patents account for $(125,000).
To journalize the adjusting entry on December 31 for the impaired goodwill of $6,000,000, you would debit (increase) the Impairment Loss account for $6,000,000, and then credit (decrease) the Goodwill account for $6,000,000. This represents impaired goodwill recording.
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b. Ms. Eaton comes up with a new plan to cut fixed costs to $210,000. However, more labor will now be required, which will increase variable costs per unit to $40. The sales price will remain at $68. What is the new break-even point?
c. . Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)?
a. Profitability will be less
b. Profitability will be more
Answers
Answer:
a. $584,800
b. $510,000
c. Profitability will be more
Explanation:
a.
Contribution Margin = Selling price - variable cost = $68 - $37 = $31
The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales. Use following formula of break-even to calculate the fixed cost.
Break-even point = Fixed cost / Contribution margin ratio
Break-even point = $266,600 / ($31 / $68) = $584,800
b.
Contribution Margin = Selling price - variable cost = $68 - $40 = $28
Break-even point = Fixed cost / Contribution margin ratio
Break-even point = $210,000 / ($28 / $68) = $510,000
c.
As the break-even point is decreases it means the cost of associated with the product is decreased because the selling price remains constant. Although there is an increase in the variable cost but reduction in fixed cost has more effect than increase in variable cost.
b) What entry would Bylie make to record the sale of the machine for $15,000 cash?
Answers
Answer:
A)
Cash $25000 Dr
Accumulated depreciation-Machine $28000 Dr
Machine $50000 Cr
Gain on disposal $3000 Cr
B)
Cash $15000 Dr
Accumulated depreciation-Machine $28000 Dr
Loss on disposal $7000 Dr
Machine $50000 Cr
Explanation:
The net book value of the machine is cost - accumulated depreciation.
Thus, the NBV = 50000 - 28000 = $22000
a. The gain on disposal = Cash received - NBV
Gain on disposal = 25000 - 22000 = $3000 gain
b. The gain on disposal = 15000 - 22000 = -$7000 (loss on disposal)
Answers
Answer:
$141 million.
Explanation:
Given: Export= $200 million.
Import= $160 million.
Foreign aid received= $80 million
Payment to foreign citizen= $15 million
Earning from abroad= $36.
Now, computing current account balance.
Total current account=
X- export
M-Import
NI-Net income
NT-Net current transfer.
Net income=
⇒ Net Income=
∴ Net Income (NI)= $21 million.
Net Transfer (NT)= $80 million.
Current account=
∴ Current account balance is $141 million.
Overload of information
High perceptual bias
Good communication
Effective electronic trail
Answers
Answer: GOOD COMMUNICATION
Explanation:
A. The capacity of data to carry potential information is called information richness. As the sales representative were the mediums and the topic was need of customers there is no scope that information will be low in richness.
B. If there would be an information overload there could not have been an increase in responsiveness.
C. The information was presented by sales representatives who gets in direct contact with customers so there is a very little chance that the information would be on perceptual basis.
D. Free and effective communication between managers and sales representatives helps to transmit complete message with all perspectives cleared . Thus, helping in succeed.
E. In this problem there is an effective internal organizational communication and not an electronic trail.