Finance Answers

Consider an individual who earns $100,000, pays $7,000 in child care expenses for one child, pays the maximum ($26,010) in Registered Pension Plan (RPP) contributions, makes charitable donations of $200 (15 percent credit), and pays $20,000 in medical expenses. Medical expenses in excess of 3 percent of net income are deductible at 20 percent. The statutory marginal tax rate is 17 percent. What is the federal tax payable? What is the individual’s actual (effective) marginal tax rate? [6 marks]

Consider an individual who earns $100,000, pays $7,000 in child care expenses for one child, pays the maximum ($26,010) in Registered Pension Plan (RPP) contributions, makes charitable donations of $200 (15 percent credit), and pays $20,000 in medical expenses. Medical expenses in excess of 3 percent of net income are deductible at 20 percent. The statutory marginal tax rate is 17 percent.
What is the federal tax payable? What is the individual’s actual (effective) marginal tax rate?

Consider this, what if a third world country namely Afghanistan's governement starts making businesses such as copying samsung to produce smart phone and phone albeit on a lower level than samsung, copying companies such as nestle to make food products, or maybe walmart to make a store chain, if the get the marketing right and the quality right, wouldn't it skyrocket the GDP and the economy considering they make the marketing and expansion to international markets, I was thinking if the government sets a 50 mil$ budget just for making businesses, of couse considering the man wouldn't be corrupt himself?

Does it have any probability or feasibility?

Suppose that Calloway golf would like to capitalize on Phil Michelson winning the Open Championship in 2013 by releasing a new putter. The new product will require new equipment for $421,075.00 that will be depreciated using the 5-year MACRS schedule. The project will run for 2 years with the following forecasted numbers:

Year 1 Year 2
Putter price $64.57 $64.57
Units sold 18,834.00 10,381.00
COGS 42.00% of sales 42.00% of sales
Selling and Administrative 21.00% of sales 21.00% of sales

Calloway has a 14.00% cost of capital and a 39.00% tax rate. The firm expects to sell the equipment after 2 years for a NSV of $148,698.00.

What is the project cash flow for year 2? (include the terminal cash flow here)

Answer Format: Currency: Round to: 2 decimal places.

Explain why a firm $1 million in the bank would care about the market interest rate when investing $10 million into a new building, after all they do not need to borrow money. When would they undertake this investment project?

Suppose that a proposal for tax reductions associated with the purchase of capital is up for debate. Suppose too that union leaders are called upon to comment on the proposal from the perspective of how it will affect the welfare of their members as workers (not consumers). Will they all agree on the effects of the proposal? Explain your answer

jules is thinking about opening a jewelry store why would she need seed capital?
a. train the workers
b.purchase equipment
c. develop a business model
d.rent a store

outline the evolution of public finance from the field of economics

How do the different levels of government use tax dollars to provide services for Americans

What is a bicameral congress