An Introduction to Tax

tax rate schedule, how much federal tax will he owe? What is his average tax rate? What is his effective tax rate? What is his current marginal tax rate? Chuck will owe $14,875 in federal income tax this year computed as follows: $14,875 = $4,750 + 25%($75,000 – $34,500)). Chuck’s average tax rate is 19. 83%. Average Tax Rate = [pic]=[pic] = 19. 83% Chuck’s effective tax rate is 17. 50 percent. Effective tax rate = [pic] = [pic] = 17. 50% Chuck is currently in the 25 percent tax rate bracket. His marginal tax rate on increases in income up to $8,600 and deductions from income up to $40,500 is 25 percent. 35) [LO3] Using the facts in the previous problem, if Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if, instead, he had $40,000 of additional deductions? If Chuck earns an additional $40,000 of taxable income, his marginal tax rate on the income is 27. 36 percent. Marginal Tax Rate = [pic]= [pic] = 27. 6% If Chuck instead had $40,000 of additional tax deductions, his marginal tax rate on the deductions would be 25. 00 percent. Marginal Tax Rate = [pic]= [pic] = 25. 00% 36) [LO3] In reviewing the tax rate schedule for a single taxpayer, Chuck notes that the tax on $75,000 is $4,750 plus 25 percent of the taxable income over $34,500. What does the $4,750 represent? The $4,750 represents the income tax on $34,500 – i. e. , $850 + 15% ($34,500 – 8,500). 42) [LO3] Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. Using the U. S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? Scot and Vidia will owe $56,654. 50 in federal income tax this year computed as follows: $56,654. 50 = $47,513. 50 + 33%($240,000 – $212,300). Scot and Vidia’s average tax rate is 23. 61 percent. Average Tax Rate = [pic]=[pic] = 23. 61% Scot and Vidia’s effective tax rate is 23. 12 percent. Effective tax rate = [pic] = [pic] = 23. 12% Scot and Vidia are currently in the 33 percent tax rate bracket. Their marginal tax rate on increases in income up to $139,150 and deductions up to $27,700 is 33 percent. 43) [LO3] Using the facts in the previous problem, if Scot and Vidia earn an additional $70,000 of taxable income, what is their marginal tax rate on this income? How would your answer differ if they, instead, had $70,000 of additional deductions? If Scot and Vidia earn an additional $70,000 of taxable income, their marginal tax rate on the income is 33 percent. Marginal Tax Rate = [pic]= [pic] = 33. 00% If Scot and Vidia instead had $70,000 of additional tax deductions, their marginal tax rate on the deductions would be 29. 98 percent. Marginal Tax Rate = [pic]= [pic] = 29. 98% 47) [LO3,LO4 PLANNING] Fergie has the choice between investing in a State of New York bond at 5 percent and a Surething bond at 8 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, in which bond should she invest? Fergie’s after tax rate of return on the tax exempt State of New York bond is 5 percent. The Surething bond pays taxable interest of 8 percent. Fergie’s after tax rate of return on the Surething bond is 5. 6 percent (i. e. , 8% interest income – (8% x 30%) tax = 5. 6%). Fergie should invest in the Surething bond. 8) [LO4 PLANNING] Using the facts in the previous problem, what interest rate does the state of New York need to offer to make Fergie indifferent between investing in the two bonds? To be indifferent between investing in the two bonds, the State of New York bond should provide Fergie the same after-tax rate of return as the Surethi ng bond. Fergie’s after tax rate of return on the Surething bond is 5. 6 percent (i. e. , 8% interest income – (8% x 30%) tax = 5. 6%). The state of New York needs to offer a 5. 6 percent interest rate to generate a 5. 6 percent after-tax return tomake Fergie indifferent between investing in the two bonds. 1) [LO5] Song earns $100,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i. e. , $20,000 of tax). If Congress increases the income tax rate such that Song’s average tax rate increases from 20 percent to 25 percent, how much more income tax will she pay assuming that the income effect is descriptive? What effect will this tax rate change have on the tax base and tax collected? Under the current income tax, Song has $80,000 of income after tax. If the income effect is descriptive and Congress increases tax rates so that Song’s average tax rate is 25 percent, Song will need to earn to $106,666. 7 to continue to hav e $80,000 of income after tax. After-tax income = Pretax income (1 – tax rate) $80,000 = Pretax income (1 -. 25) Pretax income = $106,666. 67 Song will pay $26,666. 67 in tax ($106,666. 67 x . 25). Accordingly, if the income effect is descriptive, the tax base and the tax collected will increase. 52) [LO5] Using the facts from the previous problem, what will happen to the government’s tax revenues if Song chooses to spend more time pursuing her other passions besides work in response to the tax rate change and earns only $75,000 in taxable income? What is the term that describes this type of reaction to a tax rate increase? What types of taxpayers are likely to respond in this manner? If Song only earns $75,000 of taxable income, she would pay only $18,750 of tax under the new tax structure (i. e. , $75,000 x . 25). Thus, the government’s tax revenues would decrease by $1,250 (i. e. , $18,750 – $20,000). This is an example of the substitution effect, which may be descriptive for taxpayers with more disposable income. 60) [LO5 PLANNING] Congress would like to increase tax revenues by 10 percent. Assume that the average taxpayer in the United States earns $65,000 and pays an average tax rate of 15 percent. If the income effect is in effect for all taxpayers, what average tax rate will result in a 10 percent increase in tax revenues? This is an example of what type of forecasting? This analysis is an example of dynamic forecasting. Based on the information above, the average taxpayer pays $9,750 of tax (i. e. , $65,000 x 15%), leaving $55,250 of income after tax. A 10 percent increase in revenues would mean that the average taxpayer pays $10,725 in tax ($9,750 x 1. 0). With this new tax amount, we can solve for the tax rate that would generate this tax amount. After-tax income = Pretax income x (1 – tax rate) After-tax income = Pretax income – (Pretax income x tax rate) After-tax income = Pretax income – Tax Substituting information from the problem results in: $55,250 = Pretax income – $10,725 Pretax income = $65,975 We can use the above formula to solve for the new tax rate. After-tax income = Pretax income x (1 – tax rate) $55,250 = $65,975 x (1 – tax rate) Tax rate = $10,725/$65,975 = 16. 26% An Introduction to Tax tax rate schedule, how much federal tax will he owe? What is his average tax rate? What is his effective tax rate? What is his current marginal tax rate? Chuck will owe $14,875 in federal income tax this year computed as follows: $14,875 = $4,750 + 25%($75,000 – $34,500)). Chuck’s average tax rate is 19. 83%. Average Tax Rate = [pic]=[pic] = 19. 83% Chuck’s effective tax rate is 17. 50 percent. Effective tax rate = [pic] = [pic] = 17. 50% Chuck is currently in the 25 percent tax rate bracket. His marginal tax rate on increases in income up to $8,600 and deductions from income up to $40,500 is 25 percent. 35) [LO3] Using the facts in the previous problem, if Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? What is his marginal rate if, instead, he had $40,000 of additional deductions? If Chuck earns an additional $40,000 of taxable income, his marginal tax rate on the income is 27. 36 percent. Marginal Tax Rate = [pic]= [pic] = 27. 6% If Chuck instead had $40,000 of additional tax deductions, his marginal tax rate on the deductions would be 25. 00 percent. Marginal Tax Rate = [pic]= [pic] = 25. 00% 36) [LO3] In reviewing the tax rate schedule for a single taxpayer, Chuck notes that the tax on $75,000 is $4,750 plus 25 percent of the taxable income over $34,500. What does the $4,750 represent? The $4,750 represents the income tax on $34,500 – i. e. , $850 + 15% ($34,500 – 8,500). 42) [LO3] Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. Using the U. S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? Scot and Vidia will owe $56,654. 50 in federal income tax this year computed as follows: $56,654. 50 = $47,513. 50 + 33%($240,000 – $212,300). Scot and Vidia’s average tax rate is 23. 61 percent. Average Tax Rate = [pic]=[pic] = 23. 61% Scot and Vidia’s effective tax rate is 23. 12 percent. Effective tax rate = [pic] = [pic] = 23. 12% Scot and Vidia are currently in the 33 percent tax rate bracket. Their marginal tax rate on increases in income up to $139,150 and deductions up to $27,700 is 33 percent. 43) [LO3] Using the facts in the previous problem, if Scot and Vidia earn an additional $70,000 of taxable income, what is their marginal tax rate on this income? How would your answer differ if they, instead, had $70,000 of additional deductions? If Scot and Vidia earn an additional $70,000 of taxable income, their marginal tax rate on the income is 33 percent. Marginal Tax Rate = [pic]= [pic] = 33. 00% If Scot and Vidia instead had $70,000 of additional tax deductions, their marginal tax rate on the deductions would be 29. 98 percent. Marginal Tax Rate = [pic]= [pic] = 29. 98% 47) [LO3,LO4 PLANNING] Fergie has the choice between investing in a State of New York bond at 5 percent and a Surething bond at 8 percent. Assuming that both bonds have the same nontax characteristics and that Fergie has a 30 percent marginal tax rate, in which bond should she invest? Fergie’s after tax rate of return on the tax exempt State of New York bond is 5 percent. The Surething bond pays taxable interest of 8 percent. Fergie’s after tax rate of return on the Surething bond is 5. 6 percent (i. e. , 8% interest income – (8% x 30%) tax = 5. 6%). Fergie should invest in the Surething bond. 8) [LO4 PLANNING] Using the facts in the previous problem, what interest rate does the state of New York need to offer to make Fergie indifferent between investing in the two bonds? To be indifferent between investing in the two bonds, the State of New York bond should provide Fergie the same after-tax rate of return as the Surethi ng bond. Fergie’s after tax rate of return on the Surething bond is 5. 6 percent (i. e. , 8% interest income – (8% x 30%) tax = 5. 6%). The state of New York needs to offer a 5. 6 percent interest rate to generate a 5. 6 percent after-tax return tomake Fergie indifferent between investing in the two bonds. 1) [LO5] Song earns $100,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i. e. , $20,000 of tax). If Congress increases the income tax rate such that Song’s average tax rate increases from 20 percent to 25 percent, how much more income tax will she pay assuming that the income effect is descriptive? What effect will this tax rate change have on the tax base and tax collected? Under the current income tax, Song has $80,000 of income after tax. If the income effect is descriptive and Congress increases tax rates so that Song’s average tax rate is 25 percent, Song will need to earn to $106,666. 7 to continue to hav e $80,000 of income after tax. After-tax income = Pretax income (1 – tax rate) $80,000 = Pretax income (1 -. 25) Pretax income = $106,666. 67 Song will pay $26,666. 67 in tax ($106,666. 67 x . 25). Accordingly, if the income effect is descriptive, the tax base and the tax collected will increase. 52) [LO5] Using the facts from the previous problem, what will happen to the government’s tax revenues if Song chooses to spend more time pursuing her other passions besides work in response to the tax rate change and earns only $75,000 in taxable income? What is the term that describes this type of reaction to a tax rate increase? What types of taxpayers are likely to respond in this manner? If Song only earns $75,000 of taxable income, she would pay only $18,750 of tax under the new tax structure (i. e. , $75,000 x . 25). Thus, the government’s tax revenues would decrease by $1,250 (i. e. , $18,750 – $20,000). This is an example of the substitution effect, which may be descriptive for taxpayers with more disposable income. 60) [LO5 PLANNING] Congress would like to increase tax revenues by 10 percent. Assume that the average taxpayer in the United States earns $65,000 and pays an average tax rate of 15 percent. If the income effect is in effect for all taxpayers, what average tax rate will result in a 10 percent increase in tax revenues? This is an example of what type of forecasting? This analysis is an example of dynamic forecasting. Based on the information above, the average taxpayer pays $9,750 of tax (i. e. , $65,000 x 15%), leaving $55,250 of income after tax. A 10 percent increase in revenues would mean that the average taxpayer pays $10,725 in tax ($9,750 x 1. 0). With this new tax amount, we can solve for the tax rate that would generate this tax amount. After-tax income = Pretax income x (1 – tax rate) After-tax income = Pretax income – (Pretax income x tax rate) After-tax income = Pretax income – Tax Substituting information from the problem results in: $55,250 = Pretax income – $10,725 Pretax income = $65,975 We can use the above formula to solve for the new tax rate. After-tax income = Pretax income x (1 – tax rate) $55,250 = $65,975 x (1 – tax rate) Tax rate = $10,725/$65,975 = 16. 26%

Base on the prompt Essay Example | Topics and Well Written Essays - 1750 words

Base on the prompt - Essay Example There are three business segments through which Wal-Mart operates its business: Walmart US, Sam’s Club, and Walmart International. The retail stores have four different formats: discount centers, supercenters, neighborhood markets, and other small formats (Company Profile Wal-Mart Stores Inc, 4). The key products that are offered by Wal-Mart, Inc. include: food products, consumables, entertainment goods, apparel, and goods for home; major services are: pharmacy and optical services; money order services, check cashing, photo processing services, etc. (Company Profile Wal-Mart Stores Inc, 23-24). In addition to the retail units, Wal-Mart offers its products and services through the e-commerce websites available in 10 countries (Corporate.walmart.com). Wal-Mart launched its strategy of the international business expansion in 1991, by going to neighboring countries: Canada, Mexico, and some countries of the Latin America. The total number of Wal-Mart’s international locations exceeding the number of 6,100 enables the company to generate almost 30% of its revenue ($136, 318 mln in 2013) (Company Profile Wal-Mart Stores Inc, 26). Table 1 provides an overview of some of the key facts related to the Wal-Mart’s operations in different foreign markets. Wal-Mart has started its international expansion with opening its stores or by acquiring established local retailers in neighboring countries, such as Mexico, Canada, Brazil and Argentina. The company’s success in these countries has encouraged the management to go further and expand to China, the UK, Japan, Central America, India, and African continent. Wal-mart has opened its stores in few countries, including Mexico, Argentina, Brazil, China, and India. In order to enter all other countries, Wal-Mart has applied Mergers & Acquisition strategy, buying out either whole leading retailing companies operating locally or some stake of

Choose the topic Assignment Example | Topics and Well Written Essays - 250 words

Choose the topic - Assignment Example The video could work for beginners as well as those well versed with the optics of the practice (Yoga for Complete Beginners a 20 Minute Home Yoga Workout!). The guide is clear on the steps that one needs to take into the yoga practice. One needs to find some sense of peace as well as appreciate what the exercise has to offer in the line of health benefits as well as mental serenity. Some of the health benefits associated with the practice include flexibility and muscle strength and tone. The exercise performed during the process go a long way in ensuring that the individual can strengthen their body tissue. That is by learning what it takes and what the body needs (Yoga For Complete Beginners a 20 Minute Home Yoga Workout!). The exercise also helps in respiratory functions since it can improve on one’s respiration. One can increase their body energy, as well as vitality. That makes sure that those partaking in the process can maintain healthy lifestyles, as well as some sense of cognitive stability. Yoga helps people relax and unload their minds as well as engage their bodies in some gainful exercise. The exercise also helps in weight reduction. The video helps people practice yoga in their comfort zones such as at the comfort of their

Essay --

Kierra Spaulding Media Criticism 3/11/2014 Professor Seong Min Reaction Paper: Killing Us Softly 4 I agree a great deal with the films idea of the media distorting the images of women. In the beginning of the film Jean Kilbourne states that, â€Å"the average American is exposed to over 3,000 ads every single day†. Thus, the advertising industry has the power to impact our outlook on many things in society including women. The issue is that advertisers are not looking out for our best interest; their main goal is to increase profit. As a result, individuals are physically, mentally, and emotionally affected by our culture’s unrealistic ideal image of beauty. I believe that we are constantly presented with this falsehood in the media about loving our bodies; only if our bodies are conveniently situated in what society finds attractive. For example, back in 2010, Victoria’s Secret launched the â€Å"Love Your Body† campaign. While it is very important to encourage everyone to love their body, the women depicted in the campaign all have the same body type. There is nothing wrong with their body type which is considered very slender, tall, long legs, and toned. The issue is that this is the only body presented in the campaign which makes women with other body types feel inferior and not of value. To this day, Victoria’s Secret still chooses to use this particularly slender body type to advertise their lingerie and such. Contrary to Victoria’s Secret, Dove started â€Å"The Dove Campaign for Real Beauty† in 2004. The campaign was started due to the fact that it was necessary to broaden the idea of beauty because it had become limiting and unattainable. The campaign included women of all different sizes as opposed to Victor... ...le more aware of these issues. However, the problems are still not being fixed. In fact, due to the unrealistic ideals of what a women’s body should look like, there are an enormous number of girls starting as young as 6 who hate their bodies to the extent of skipping dinner. Females are driven to the point of anorexia, bulimia, as well as binge eating. Women go on extreme diets that are not realistic to stay healthy causing them to go on excessive binges which in return are even worse. The statement â€Å"If looks could kill† can actually be taken literally because women are trying to â€Å"look† the part while unfortunately killing themselves emotionally, mentally, and physically. Sources Dove Campaign http://www.dove.us/social-mission/campaign-for-real-beauty.aspx Victoria’s Secret Campaign http://www.huffingtonpost.com/2010/03/01/victorias-secret-launches_n_480435.html

Organizational Culture Essay

Organizational Culture has been described as the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. In most organizations, these shared values and practices have evolved over time and determine, toa a large extent, how things are done in the organization. This definition continues to explain organizational values, described as â€Å"beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develop organizational norms, guidelines, or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another. † The definition of culture implies three things. The culture is ‘perspective’, ‘descriptive’ and finally ‘shared’ within the organization. Research suggests that there are seven dimensions that describe and organization’s culture. Each of the seven dimensions (shown in exhibit 1) ranges from low to high, meaning it is not very typical of the culture (low) or is very typical of the culture (high). The seven dimensions of culture are: Attention to Detail. Outcome Orientation. People Orientation. Team Orientation. Aggressiveness. Stability. Innovation and Risk Taking. The culture of an organization can either be Strong or Weak. It is the culture, that sometimes influence the employees’ behaviors and actions. Strong Culture is said to exist where staff respond to stimulus because of their alignment to organizational values. In such environments, strong cultures help firms operate like well oiled machines, cruising along with outstanding execution and perhaps minor tweaking of existing procedures here and there. Research shows that strong cultures are those in which the key values are deeply held and widely shared and have a greater influence on employees than do weaker cultures. A â€Å"Strong† culture may be especially beneficial to firms operating in the service sector since members of these organizations are responsible for delivering the service and for evaluations important constituents make about firms. Research indicates that organizations may derive the following benefits from developing strong and productive cultures: †¢Better aligning the company towards achieving its vision, mission, and goals †¢High employee motivation and loyalty †¢Increased team cohesiveness among the company’s various departments and divisions. †¢Promoting consistency and encouraging coordination and control within the company †¢Shaping employee behavior at work, enabling the organization to be more efficient. However, in a strong culture, people do things because they believe it is the right thing to do, this often creates a state where people, even if they have different ideas, do not challenge organizational thinking, therefore, resulting in a reduced capacity for innovative thoughts. Most organizations have moderate to strong cultures; that is, there is relatively high agreement on what’s important, what defines â€Å"good† employee behavior, what it takes to get ahead, and so forth. However, it is also important to view what a weaker culture in an organization may yield at: An organization’s culture is often established by its top managers and it starts at the selection process. For instance, during the employee selection process, managers typically judge job candidates not only on the job requirements but also on how well they might fit into the organization. Further to that, the risk-taking appetite and irreverence to its competitors by the top managers paves the growth and action of an organization.

Definition and Examples of Spacing in Composition

The Narrative Style of Aphra Behns Oroonoko Essay

Oroonoko is an intriguing and epic story of a young African prince who gets tricked into becoming a slave for a workers plantation written by the first professional woman author, Aphra Behn. As the story is told by the narrator (who the reader will presume to be the author Aphra Behn) the reader gets a sense of a first hand perspective from the narrator. This allows the reader to only get a perspective from the narrators point of view. As the story is told to the reader, the narrator seems to favour or share sympathy with Oroonoko and even in some cases, throw in a biased opinion. This is why the story of Oroonoko and his misfortunes should not be taken as a true account, but rather as a narrative biased opinionated tale. When we†¦show more content†¦As Behn describes him as of a shape the most exact that can be fancied the reader can truly have it engraved in his or her mind that the author is most definitely favouring the physical body of Oroonoko. As the reader can clearly seen the favouritism that Behn has with the physical part of Oroonoko, one can also capture from the writings of Behn that a strong sense of emotional favouring is had by the narrator with the Prince. A good example of that emotional favouritism is when Oroonoko and his fellow tribe mates are tricked into having a dazzling feast on board such an immense and wonderful ship by the Captain. When Behn describes the way that the Captain takes the many tribesmen and Prince Oroonoko into custody as slaves she uses harsh words that would seem almost to condemn the acts that the Captain had ordered. The same treachery was used to all the rest she says, describing the harsh and emotionless forces and that the Captain and his shipmates administer to betray the trust of their guests. Even though the author later states that some have commended this act, as brave in the captain; but I will spare my sense of it, and leave it to my reader to judge as he pleases, there are still a few feelings that show that Behn is secretly (to the untrained reader) feeling sympathy towards Oroonoko and utter disgust towardsShow MoreRelatedAphra Bens Oroonoko and Daniel Defoes Moll Flanders1562 Words   |  6 PagesIn his Dictionary of Literary Terms, Harry Shaw defines the novel: â€Å"In effective narrative literature, fictional persons, through characterization, become so credible that they exist for the reader as real people,† he says (1). Many eighteenth century British novelists neglected to earn this credibility. Looking specifically at Aphra Behn’s Oroonoko and Daniel Defoe’s Moll Flanders, Shaw’s definition becomes especially difficult to apply to Moll and Oroonoko’s narrator. While the novels shouldRead MoreEssay about Oroonoko, by Aphra Behn1336 Words   |  6 PagesAphra Behn’s novel, Oroonoko, gives a very different perspective on a slave narrative. Her characters embody various characteristics not usually given to those genders and races. Imoinda’s character represents both the modern feminist, as well as the subservient and mental characteristics of the typical eighteenth-century English woman. Oroonoko becomes an embodiment of what is normally a white man’s characteristic; he is the noble, princely, and sympathetic character that is not usually attributedRead Morecompare and contrast aphra Bhens Oroonoko the royal slave and candide, or optimism1618 Words   |  7 PagesWRITE AN ESSAY OF 1,500 WORDS IN WHICH YOU COMPARE AND CONTRAST THE TWO PASSAGES BELOW, TAKEN FROM BEHNS _OROONOKO_ OR THE ROYAL SLAVE AND VOLTAIRES _CANDIDE_, OR OPTIMISM. IN YOUR DISCUSSION PAY PARTICULAR ATTENTION TO THE WAYS IN WHICH THE CONTEXTS OF EUROPEAN COLONISATION AND EXPLORATION INFORM THE TWO PASSAGES. Aphra Bhen was a prolific female playwright and author during the restoration period of English history. Bhen herself stood by the power of the monarchy. Her book _Oroonoko_