You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freakstreet-sweeper accident. In the trial, doctors testified that it will be five years before theplaintiff is able to return to work. The jury has already decided in favor of the plaintiff. Youare the foreperson of the jury and propose that the jury give the plaintiff an award tocover the following:(a) The present value of two years' back pay. The plaintiff's annual salary for the last twoyears would have been $53,000 and $56,000, respectively.(b) The present value of five years' future salary. You assume the salary will be $59,000per year.(c) $180,000 for pain and suffering.(d) $25,000 for court costs.Assume the salary payments are equal amounts paid at the end of each month.If the interest rate you choose is an EAR of 11 percent, what is the size of the settlement?(Do not round intermediate calculations and round your answer to 2 decimal places,e.g., 32.16.)X Answer is complete but not entirely correct.Award$ 550,519.22 x

Explanation of Concept Concept of discount cash flow for calculating the present value of initial…

Answered: for court costs. salary payments are…

for court costs. salary payments are equal amounts paid at rate you choose is an EAR of 11 percent, v d intermediate calculations and round y

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 50P

See similar textbooks

Related questions

Q: D4) Finance

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: Net income Preferred dividends Average stockholders' equity Average common stockholders' equity…

A: Return on stockholders' equity (ROE): ROE measures the profitability of the company. It is…

Q: The following account balances were provided by Kate's Consulting Company as of December 31, 2022.…

A: Formula used: Ending capital = Beginning capital + Net profit - Drawings made

Q: If a business firm has assets worth $170,000 and liabilities that total $40,000, what is the value…

A: The accounting equation states that assets equal to sum of liabilities and equity. Assets =…

Q: (Ignore income taxes in this problem.) If an investment of $14,760 now will yield $18,000 at the end…

A: Introduction: An investment in real estate that will one day be worth more than the purchase price.…

Q: As the accountant for Clean Air Controls, you attend a meeting with the sales managers to discuss…

A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…

Q: Income earned from incidental operations before an asset is put to use is: deducted from the…

A: Incidental Revenue - Incidental revenue can be earned anytime during or before the assets put to use…

Q: Using the accounting equation, compute the missing amounts for each of the following companies.…

A: Assets=Liabilities+Stockholders' Equity

Q: Data Data for the question $ 8.00 per hour Fixed manufacturing overhead budgeted at Actual Fixed…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Ramona Company reported the following data. Price per unit = $10 Sales price Variable cost per unit…

A: Calculation of Contribution :- Contribution = (Selling price per unit - Variable cost per unit) x…

Q: In Process Costing, what are spoilt units? In what ways do they resemble spoilt units when it comes…

A: Process costing is a method of costing used where units are continuously produced through one or…

Q: On May 15, FDN Trading signed a P150,000, 12 percent, 150-day note payable with the bank. The note…

A: Formula: Cash received = Face value of the note - Discount on Note where, Discount on Note = Face…

Q: Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The…

A: Customer retention rate is the actual percentage of existing customers who remain customers after a…

Q: Could the accountant be sure that all dividends due on the client's marketable securities have been…

A: Dividends: This is the amount of cash distributed to stockholders by a company from its earnings in…

Q: Critical Thinking Exercises 2-6 As a student you have individual experiences with your college or…

A: Introduction: SWOT Analysis: Swot analysis is a method for identifying and evaluating the strengths,…

Q: For the raw materials used to make its stoves, Kleslia, SRL has a standard price of $10.92 per gram…

A: Materials price variance = (Standard price x Materials purchased) - Actual cost

Q: ABC Corp purchased land and building at a lump price of P6M. ABC demolished the building and…

A: The costs incurred to make the land available for use is included in the cost of land.

Q: McDonald ltd is a retailer of fruit juices. The company has an annual demand of 72,500 barrels. The…

A: EOQ is the quantity at which total cost is lower.But if discount is given by seller or ordering and…

Q: The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are…

A: Contribution = Selling price - Variable cost Increase in contribution margin = 120 units × $100×55%…

Q: Niles

Q: • Price per unit: $10 . Variable cost per unit: $7 . Fixed costs: $1,500 Given these data, compute…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: Skane Shipping Ltd. (SSL) operates a fleet of container ships in international trade between Sweden…

A: Here discuss about the details of total revenue, cost and income taxes and total taxes which are…

Q: D6) ABD was acquired by CAP when net assets of the former were £x. In line with group policy, the…

A: Non-controlling interest is also known as a minority interest. It means an ownership position in…

Q: Immediately prior to liquidation, Anna, Ben, and Carl have capital balances of P300,000, P200,000,…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: You have your choice of two investment accounts. Investment A is a 6-year annuity that features…

A: Solution:- Given, Invest A is a 6-year annuity that features end-of-month = $3,000 Investment A -…

Q: person bought laptop for $ 10k . Seven years from now the salvage value is $ 500 . Other costs…

A: Present worth of asset is Present value of all cash inflow less present value of of all cash out…

Q: Candra GmbH obtains two products from a common input, Crude Oil. Joint processing costs up to the…

A: Further Processing of Product: The decision of whether to sell a product now or continue processing…

Q: Ending Capital 4 The following account balances were provided by Kate's Consulting Company as of…

A: In order to determine the Ending capital balance, the net income are added and the dividend paid or…

Q: XYZ Ltd. has the following costs for 1,000 units: Total Cost Direct materials € 1.500 Direct labour…

A: Direct material is the material which is directly used for the production of the goods.

Q: Accounting Act §5-3.2. paragraph regulates depreciation of property, plant and equipment. What…

A: Depreciation refers to writing off the cost of a asset over its useful life in the ratio of economic…

Q: aling profit (profit before interest and tax) remains constant If the equity issue goes ahead and…

A: Given in the question: Already shares issued = 100,000,000 shares Net Profit after tax = $55,000,000…

Q: Explain generally accepted accounting principles (GAAPs).

A: GAAP stands for Generally accepted principles.

Q: Belfast Inc. prints calendars. All direct materials are included at the inception of the printing…

A: The equivalent units are calculated on the basis of percentage of the work completed during the…

Q: A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays…

A: Note: 3/10, n/40: Here, 3 represents the discount rate if payment is made within ten days. And if…

Q: TCL Company had the following transactions during 2021 1. Sales of P4,500 on account 2. Collected…

A: Accrual Basis of Accounting - a. Under the Accrual basis of accounting, revenue is recognized when…

Q: An insurance company is offering a new policy to its customers. Typically, the policy is bought by a…

A: Introduction: A value policy is one in which the amount payable for a dispute is determined upon at…

Q: PIZZA Parlor Co had the following available information: Accounts receivable P200,000 Accounts…

A: Introduction: The current ratio is a liquidity ratio used to assess a company's ability to pay…

Q: Chill Pill Pharmaceuticals is expecting a growth rate of 14% for the next two years due to its new…

A: P0=D1Ke-g where, P0 = price of the stock D1 = Dividend at year 1 Ke = Required return rate g =…

Q: Cash on hand and in banks Accounts receivable -- Merchandise inventory - 50,000 -- 350,000…

A: Lets understand the basics. Current asset is a asset that are either in cash or convertible into…

Q: Scratch Pad A shareholder has received the following summarised financial results for Scruff Co for…

A: Return on Capital Employed implies how much return has been earned by the firm on its total capital.…

Q: The budgeted sales of Kelley, SA for the given months are as follows: Cash Sales Credit Sales…

A: Accounts receivable is the amount that has been earned by the company but the amount has not been…

Q: ABC Co purchased an equipment from Hongkong for P100,000. Additional cost included the following:…

A: The costs incurred on non cash assets till they are ready to use are to be capitalized by the…

Q: Mary Jane started her own service company. She invested 3,000,000 cash to open the business and has…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Ernst Company's balance sheet shows total liabilities of $32,500,000, total stockholders' equity of…

A: Debt ratio= total debt/Total asset*100 =32500000/40625000 *100 = 80%

Q: State the standard method of determining the cost of goods sold by a retailing or a wholesaling…

A: The cost of goods sold includes the total cost of goods sold include the cost of goods that are sold…

Q: The Income Statement for the year 2021 of Mira Co. contains the following information: Revenue…

A: Stockholder equity statement is the one where net income and additional capital introduced are added…

Q: Define return on sales ( or profit margin).

A: Financial ratios represent the accounting ratios computed by the management by using elements of…

Q: ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated…

A: Given, 1/1/18 - purchased equipment worth P2200000. residual value = P200000. estimated useful life…

Q: Anna and Ben formed a partnership. Anna contributed cash of P786,000 and office equipment costing…

A: Anna's capital immediately after partnership formation will be total assets contributed by Anna at…

Q: On 1 July 2014. Ark Ltd acquired a 30% interest in Sign Ltd for $54,929,000. During the year ended…

A: The share of the parent company in the profits of its subsidiary is equal to the amount of adjusted…

Question

You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak
street-sweeper accident. In the trial, doctors testified that it will be five years before the
plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. You
are the foreperson of the jury and propose that the jury give the plaintiff an award to
cover the following:
(a) The present value of two years' back pay. The plaintiff's annual salary for the last two
years would have been $53,000 and $56,000, respectively.
(b) The present value of five years' future salary. You assume the salary will be $59,000
per year.
(c) $180,000 for pain and suffering.
(d) $25,000 for court costs.
Assume the salary payments are equal amounts paid at the end of each month.
If the interest rate you choose is an EAR of 11 percent, what is the size of the settlement?
(Do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.)
X Answer is complete but not entirely correct.
Award
$ 550,519.22 x

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Federal Insurance Contributions Act (FICA)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following: (a) The present value of two years’ back pay. The plaintiff’s annual salary for the last two years would have been $33,000 and $36,000, respectively. (b) The present value of five years’ future salary. You assume the salary will be $40,000 per year. (c) $100,000 for pain and suffering. (d) $12,000 for court costs. Assume that the salary payments are equal amounts paid at the end of each month. If the appropriate rate you choose is an EAR of 8 percent, what is the size of the settlement? size of settlement?
You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following: (a) The present value of two years’ back pay. The plaintiff’s annual salary for the last two years would have been $43,000 and $46,000, respectively. (b) The present value of five years’ future salary. You assume the salary will be $51,000 per year. (c) $150,000 for pain and suffering. (d) $20,000 for court costs. Assume that the salary payments are equal amounts paid at the end of each month. If the interest rate you choose is an EAR of 6.5 percent, what is the size of the settlement? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak doggie poo accident. In the trial, doctors testified that it will be 5 years before the plaintiff is able to return to work. The jury has already decided in favour of the plaintiff. You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following: (1) The present value of 2 years’ back pay. The plaintiff’s annual salary for the last 2 years would have been €25,000 and €28,000, respectively. (2) The present value of 5 years’ future salary. You assume the salary will be €28,000 per year. (3) €100,000 for pain, suffering and humiliation. (4) €20,000 for court costs. Assume that the salary payments are equal amounts paid at the end of each month. Required: If the interest rate you choose is a 4 per cent APR, what is the size of the settlement? (Do not include the euro…
It is now December 31, 2008 (t = 0), and a jury just found in favor of a woman who sued the city for injuries sustained in a January 2007 accident. She requested recovery of lost wages plus $200,000 for pain and suffering plus $80,000 for legal expenses.Her doctor testified that she has been unable to work since the accident and that she will not be able to work in the future. She is now 55, and the jury decided that she would have worked for another 10 years. She was scheduled to have earned $84,000 in 2007. (To simplify this problem, assume that the entire annual salary amount would have been received on December 31, 2007.) Her employer testified that she probably would have received raises of 3% per year. The actual payment will be made on December 31, 2009. The judge stipulated that all dollar amounts are to be adjusted to a present value basis on December 31, 2009, using a 7% annual interest rate and using compound, not simple, interest. Furthermore, he stipulated that the pain…
So the question in my discussion board is " Wehn employees of County Bank are summoned to serve on jury duty, the firm pays its workers the difference between their regular wages and the amount received for jury duty. One such employee has been receiving $365 per week. She just completed a five-day week of jury duty, for which she was paid $65 ($9 per day plus 20 cents per mile from her house to the courthouse, a 20- mile round trip). How much of the employee's earning are subject to FICA tax?" Im confused a bit... the difference in the regular pay and jury duty pay is 365-65=300 right? so does that mean just 300 is subject to FICA tax but in my book it says jury duty pay is another common type of payment that is considered a wage under FICA so would the full 365 be subject to FICA?
When employees of County Bank are summoned toserve on jury duty, the firm pays its workers the difference between their regular wages and the amountreceived for jury duty. One such employee has beenreceiving $365 per week. She just completed a fiveday week of jury duty, for which she was paid $65($9 per day plus 20 cents per mile from her house tothe courthouse, a 20-mile round trip). How much ofthe employee’s earnings are subject to FICA tax?
Several years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by the County, at the time of the lawsuit the attorneys believed that the County was likely to lose and the estimated amount of the ultimate judgment would be $100,000. This year, the case was finally settled with a judgment against the County of $150,000, which was paid. Assuming that the County maintains its books and records in a manner to facilitate the preparation of its government-wide financial statements, the entry in the current year should be a. Debit Expenditures $150,000; Credit Cash $150,000. b. Debit Expenses $150,000; Credit Cash $150,000. c. Debit Expenditures $50,000 and Claims Payable $100,000; Credit Cash $150,000. d. Debit Expenses $50,000 and Claims Payable $100,000; Credit Cash $150,000.
This year, Port City was sued for injuries sustained when a citizen slipped and broke her hip on the icy City Hall steps. The City attorney estimates the City will be held liable by the courts and a judgment of $200,000 will result. Because of the nature of the case it will likely be four years before the City makes any payment related to the accident. The present value of the likely future payment is $167,000. In the General Fund, at the end of the current fiscal year, Port City should recognize a liability of $200,000.00 $167,000.00 $0.00 $50,000.00
Carmen had worked for Sparrow Corporation for thirty years when she died of a heart attack at age 60. She was practically penniless at the time of her death, owed a $12,000 hospital bill, and had a disabled spouse. The company was very concerned about its public image, and rather than run the risk of embarrassment from one of its long-term employees dying and leaving her spouse with insufficient means, the Board of Directors agreed to pay Carmen’s hospital bill and to give her spouse $6,000 per year for the rest of his life. Discuss both sides of the question whether Carmen (or her estate) and her spouse realize any taxable income from the above.