Blue is the owner of all of the shares of an S corporation, and Blue is considering receiving a salary of $110,000 from the business. She will pay the 7.65% FICA taxes on the salary, and the S corporation will pay the same amount of FICA tax. Blue reduces her salary to $50,000 and takes an additional $60,000 as a cash distribution. How would her Federal income tax liabilities change? Assume that the IRS will not recharacterize the distribution as salary. If required, round your answer to the nearest dollar. Assume a FICA rate of 7.65%. Blue and the corporation save $ in FICA taxes.

Q: Camila Company has set the following standard cost per unit for direct materials and direct labor.…

A: The variance is the difference between the actual data and standard output of the production. The…

Q: Danville Co. provided the following information for the year ended December 31, 20Y1:…

A: Cost of goods manufactured means the amount of cost incurred on the making of the goods. It includes…

Q: Rank the projects according to the profitability index, from most profitable to least profitable.

A: Introduction:- The following formula used to calculate profitable index as follows:- profitable…

Q: Louisa is a lecturer at a public university and a single mother of three (3) children. All her…

A: A resident individual is subject to taxation on his/her income for a year and the tax liability is…

Q: (essay) The owner of a company asks you if he can charge all his personal expenses to his business.…

A: It is a fundamental existential principle that the company when registered Becomes a separate legal…

Q: provide answers for PART B as well

A: Ratio analysis help to understand relationship between two variables and understand the impact on…

Q: An even stream of payments over equal time periods where the interest rate is constant is referred…

A: The payment period is the period of time from the point a debt is incurred to the due date of the…

Q: Prompt #2.1 Carla's Soft Drinks Co. (CSD) brews reduced sugar soda and regular soda. Sales of its…

A: Break even point in dollars = Fixed cost/Combined contribution margin ratio Combined contribution…

Q: At the beginning of 2022, Metatec Incorporated acquired Ellison Technology Corporation for $590…

A: The amount by which the carrying value of an asset or cash-generating unit is higher than its actual…

Q: Jessup Company expects to incur manufacturing overhead costs of $20,000 each month during the year…

A: Sales price = Cost per unit + Profit per unit  Cost = Direct material + Direct labor + Manufacturing…

Q: At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets…

A: Manufacturing costs are those which include all the direct and indirect costs relating to the making…

Q: Assume that John's marginal tax rate is 37 percent. If a city of Austin bond pays 6.5 percent…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: he per-unit standards for direct materials are 2 g direct materials that actually cost $38900 were…

A: Answer :Material quantity variance = (Standard quantity - Actual quantity ) * Standard rate Material…

Q: acob purchases camping equipment at a cost of $3,450 by taking out an 9% add-on installment loan.…

A: Solution:- Calculation of How much are Jacob's monthly payments as follows under:- Note:- The loan…

Q: Listed below is information pertaining to activities of the B. Alvaro Company that require…

A: The adjusting entries are the double entry passed at the end of the period to record the non-cash…

Q: Which of the following statements is true?   I. To provide a basis for comparison of actual…

A: Budgeting in commercial enterprise is a procedure of searching at a commercial enterprise’ estimated…

Q: The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always…

A: Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the…

Q: Jerome Company provided the following information for the month of December 2022: Balance per bank…

A: Bank Reconciliation:- It is the statement prepared to reconcile the errors between the company's…

Q: Which of the following methods is being described by a transfer price equal to 130% of full cost?…

A: The concept of transfer price generally arises when one division sells goods or services to another…

Q: Ma3. What are the benefits and limitations of ABC?   Please answer according to the structure…

A: Activity-based costing (ABC) is a method of assigning costs to products or services based on the…

Q: etable securities unts receivable ntory unts payable rmine the (a) current ratio, and (b) qu

A: Answer : Current assets= Cash +Marketable securities + Account receivable+ Inventory  Current assets…

Q: The following information is provided.   Project                            Income…

A: Residual income: Residual income means the excess of income earned over the desired income. Desired…

Q: Utah Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following…

A: Changes in the working capital are accounted in the statement of cash flows in the indirect method.…

Q: The trend analysis report of Poplar, Inc. is given below (in millions): 2025 2021 2024 2023 2022…

A: Trend percentages can be calculated on basis of various base.  Base can be taken from the previous…

Q: Bill and Bob share profits of their partnership in the ratio of 3:1 respectively. If the net income…

A: Partnership is the business type in which net income or loss is distributed among more than one…

Q: The current sections of Flint Corporation's balance sheets at December 31, 2021 and 2022, are…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Dr. Genius buys a house for $1,000,000 on a 30 year loan at 2.5% APR.    Dr Ridiculous buys a…

A: Formula for calculating monthly Mortgage Payment = P [ i (1+i)n ] / (1+i)n-1 where, P = Principal…

Q: Statement 1:  The dividends paid by the subsidiary are completely eliminated from the consolidated…

A: Answer  In case of any dividend  is paid / received by holding  company  or subsidiary  between…

Q: 1 October 2020, OXIOM purchased 200,000 equity share in Eban, a key supplier. Eban’s shares are…

A: Equity Share - An equity share, sometimes referred to as an ordinary share, is a form of fractional…

Q: significant scope limitation, determined to be pervasive, existed during an audit. The CPA will…

A: An auditor shall be give an opinion on the financial statements if he was audited. The auditor shall…

Q: Carla Vista Company's balance sheet at December 31, 2026 reports assets of $994000 and liabilities…

A: Answer For goodwill calculation  Formula =    Purchase consideration - total net of…

Q: Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely…

A: Introduction:- Net present value method : It is defined as the difference between the present value…

Q: CAM should be included in the report if it a. Focuses on matters involving challenging, subjective,…

A: Audit is an independent examination of financial statements which was conducted to express an…

Q: Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 1/20, net 45,…

A: Answer:-  Cost of trade credit:- Terms that suppliers provide to the firms in exchange for trade…

Q: Philadelphia Company has the following information for March: Sales Variable cost of goods sold…

A: Answer Formula =  Manufacturing margin      =   sales - cody of goods sold  a)  manufacturing margin…

Q: The management of Wy Corporation would like to investigate the possibility of basing its…

A: The predetermined overhead rate is the rate of allocation of overhead to each unit produced in the…

Q: Which of the following is a cash outflow for a financing activity on the statement of cash flows?

A: Financing activities is a section of cash flow statement which includes the issuance and repurchase…

Q: Zoe Corporation has the following information for the month of March: Cost of direct materials used…

A: Cost of goods manufactured is the cost incurred on the making of the goods whereas the cost of goods…

Q: An internal auditor's work would most likely affect the nature, timing, and extent of an independent…

A: It is the responsibility of an Internal Auditor to verify that all of a company's operational…

Q: Stryker Industries received an offer from an exporter for 22,000 units of product at $17 per unit.…

A: The correct answer is: (A) $110,000   22,000 units x ($17 - $12 variable costs) = $110,000

Q: for $250 and total variable costs per jacket are $100. Frazier Company's fixed costs per unit are…

A: The contribution margin is calculated as difference between sales and variable costs. The operating…

Q: XZY Co. has several divisions. Division A produces and sells a gadget which it sold to the outside…

A: Transfer pricing is used when one component that's sold by one division is used by another division…

Q: When Isaiah Company has fixed costs of $115,440 and the contribution margin is $26, the break-even…

A: The break even sales are the sales where business earns no profit no loss during the period. The…

Q: costs $50000, including $5000 for installation. The machine is expected to have a useful life of…

A: Depreciation - Depreciation is an accounting technique for spreading out the expense of a tangible…

Q: Multiple-Step Income Statement On March 31, 20Y4, the balances of the accounts appearing in the…

A: Multi-step income statements are prepared by representing the income and expenses into different…

Q: The following information is available for Ivanhoe Company for the year ended December 31, 2022.…

A: Statement of cash flows is the statement which shows the increase or decrease in cash or cash…

Q: Which statement(s) is(are) correct?

A: Whenever a firm own a sum from a customer, it is treated as accounts receivables and are shown as…

Q: Exhibit 6-4 Use the data below to answer the questions that follow. Assume that the company uses the…

A: Moving Average Method :— Under this method, average cost per unit at the time of sale is used for…

Q: The following information is for direct labor cost for X Company for 2021: Budgeted labor hours per…

A: Direct labor is the cost that is incurred on the workers involved in the production process of the…

Q: pls kindly advise as how did u come to current liabilities as 54500.00, pls provide explanantion and…

A: Answer Formula for current ratio     =  current assets / current liability Current assets = cash…