Business

FinanceQ&A LibraryMarginal tax rates: Partner A, a single taxpayer, is one of two partners in a small business. As such, she receives pass-through income that is taxed at her personal tax rates. After all adjustments and deductions have been made, including the 20% qualified business income deduction, she is preparing to calculate her taxes owed for the year. Using the tax rate schedule given here, perform the following:a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $ 15,200 = 12% (i got this correct)The total taxes due for earnings before taxes of $15,200 is $____?I don't understand how to calculate this portion?I did:Base Tax + Marginal Rate * Amount over base bracket953 + 12% * $9525 = $2096 (the 2096 came in wrong and it said $1634 is the correct answer and i don't understand where that number came from?)Start your trial now! First week only $4.99!*arrow_forward*

Question

Marginal tax rates: Partner A, a single taxpayer, is one of two partners in a small business. As such, she receives pass-through income that is taxed at her personal tax rates. After all adjustments and deductions have been made, including the 20% qualified business income deduction, she is preparing to calculate her taxes owed for the year. Using the tax rate schedule given here, perform the following:

a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $ 15,200 = 12% (i got this correct)

The total taxes due for earnings before taxes of $15,200 is $____?

I don't understand how to calculate this portion?

I did:

Base Tax + Marginal Rate * Amount over base bracket

953 + 12% * $9525 = $2096 (the 2096 came in wrong and it said $1634 is the correct answer and i don't understand where that number came from?)

Tagged in

Business

Finance

Find answers to questions asked by students like you.

Q: Consider the following information and then calculate the required rate of return for the Global Equ...

A: Beta of the portfolio, Bp = Sum of investment proportion weighted beta of the individual security.Pl...

Q: In many of the resources I've found in regards to the Black-Scholes Formula, it uses the natural log...

A: You are right in your observation that all the literature and academic materials available on Black ...

Q: Rappaport Industries has 6,250 perpetual bonds outstanding with a face value of $2,000 each. The bon...

A: Calculating the value of interest tax shield. We have,Interest payment per year = Face Value of bond...

Q: One year ago, your company purchased a machine used in manufacturing for $115,000. You have learned...

A: Calculation of NPV of Replacement:To calculate the NPV of Replacement, follow the below steps:

Q: Explain horizontal and vertical analysis and when you would use one over the other.

A: While assessing financial performance of a company, we can\\'t just look at the company\\'s financia...

Q: What are the benefits of pro forma financial statements?

A: Pro forma financial statement:Pro forma financial statements is a report which are prepared on the b...

Q: Grill Works and More has 8 percent preferred stock outstanding that is currently selling for $49 a s...

A: Calculation of Cost of Preferred Stock:

Q: Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West ...

A: Given, Value of land is $6,500,000.Equipment cost is $95,000,000.Equipment life is 7 years.Equipment...

Q: What is opportunity cost and how does it affect the decision-making process for business decisions?

A: Discuss the opportunity cost and the way how it affects the decision making process for business dec...

Q: Your firm is offered credit terms of 1/10, net 35. What is the effective annual interest rate on thi...

A: Calculating the value of effective interest rate on the credit terms. We have,Effective interest rat...

Q: Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondepreciation fixed costs a...

A: Your answers to part (a), (b) and (c) are correct. Hence, I am not solving them again. Further you h...

Q: a. If you borrow $1,100 and agree to repay the loan in six equal annual payments at an interest rate...

A: Part (a)Let the annual payment be P. Interest rate, i = 11%; n = period = number of payment = 6Hence...

Q: A company has just raised $6 million by issuing 4000 12-year 11% bond at par. It's predicted that th...

A: Current characterisitics of the bond:Time to maturity = 12-yearsCoupon = 11% bondPriced at par

Q: 1. Multinational corporations Why do companies go global? Multinational corporations operate in loca...

A: The best describe reason for Saltwater Corp is “to seek production efficiency”.Justification: The co...

Q: Consider a project to produce solar water heaters. It requires a $10 million investment and offers a...

A: a.Calculation of Present Value of Interest Tax Shield:Excel Spreadsheet:

Q: Decide whether the following statement makes sense (or is clearly true) or does not make sense (o...

A: The correct answer is “Statement D”.

Q: Heidi owns 680 shares of Boyd Enterprises, which is priced at $65.44 per share. The company plans a ...

A: Number of stocks prior to stock split, Npre = 680Proposed stock split: 6 for 5 that is a shareholder...

Q: The Nickelodeon Manufacturing Co. has a series of $1000 par value bonds outstanding. Each bond pays ...

A: a)Calculation of Current Price of Bonds with 3 years maturity:Excel Spreadsheet:

Q: A firm has the following investing alternative: Cash Inflows Year ...

A: Since the question has multiple sub parts, I will address the first five sub parts. Please post the ...

Q: our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each...

A: We have to essentially find the disocunt rate at which this investment has NPV of zero. Thus, we nee...

Q: What is the current price of a zero-coupon bond with a 7 percent yield to maturity that matures in 2...

A: Two assumptions are required before we proceed to calculate the price of the zero coupon bond:1. Let...

Q: Lantech investor is deciding between two bonds: Bond A pay $72 annual interest and has a market val...

A: Since you have asked multiple sub parts in the question, I will address the first three sub parts. P...

Q: The following numbers were randomly generated from a standard normal distribution: -0.25 0.3 ...

A: Geometric Brownian Motion:It is a Markov process. In this price of stock follows random walk and is ...

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: ...

A: a.Calculation of Break-Even point in bags:

Q: Hankins Corporation has 8.9 million shares of common stock outstanding, 640,000 shares of 7.4 percen...

A: Calculating the value of after-tax cost of capital. We have,Cost of debt is calculating by the calcu...

Q: A project will produce cash inflows of $3,200 a year for 4 years with a final cash inflow of $5,700 ...

A: Calculation of NPV: Excel spread sheet:

Q: What impact do bond ratings have on the cost of debt to the issuing firm?

A: Bond Ratings: It is the ratings that portrayals of the reliability of corporate or government bonds....

Q: Relative inflation rates affect interest rates, exchange rates, the overall economic health of a cou...

A: Answer 1:The statement is a “valid” statement.Justification: The interest rate may comprise two segm...

Q: Assume that you purchase a five-year, $1,000 par value bond, with a 6 percent coupon and a yield of ...

A: Calculating the current price of the bond. We have,Current price of bond = C [1 – (1 / (1+r)n ] / r ...

Q: Chang Industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000...

A: Calculation of gain or loss on retirement:

Q: Capital budgeting problems and what king of you used for solving (NPV and IRR PROBLEMS ) A firm has...

A: The question has 6 sub parts and we’re entitled to solve only 3 sub parts in one question. So, kindl...

Q: Can I have this explained? Am confused. Now you have $20,000 in your savings account in which you ea...

A: Calculation of Quarterly Interest Rate:

Q: A project costs $1 million and has a base-case NPV of exactly zero (NPV sign. Enter your answers in ...

A: a.Calculation of Adjusted Present Value:

Q: The Company dividend appears to grow smoothly at a constant rate of 5.5%. Analysts forecast that nex...

A: Recall the Gordan Growth Model with constant growth. Price at any time t is given byPt = Dt+1 / (ke ...

Q: Kose, Inc., has a target debt-equity ratio of 1.31. Its WACC is 8.1 percent, and the tax rate is 22 ...

A: Kose, Inc., has a target debt-equity ratio of 1.31. Its WACC is 8.1 percent, and the tax rate is 22 ...

Q: Micro-Technologies is a Bio Tech research firm that is conducting research on a cure for Aids. Their...

A: Step1: Calculating the value of after-tax cash outflow under lease arrangement. We have,Lease paymen...

Q: A Company project of 10 years, Paying 2,000,000 a year with a 4% growth each year, at the end of pro...

A: Preparation of table that showing formula step in excel for calculating present value of cash flow. ...

Q: Ezzell Enterprises' noncallable bonds currently sell for $1,198.50. They have a 5-year maturity, sem...

A: Before we get into the question, let's understand the following equation:Yield to maturity of the bo...

Q: Part E. Assume that the group plans to reinvest $50,000 of its profits in the practice by buying a n...

A: From the question and previous workings we have:Operating Profit :$1,190,745Cost of EKG Machine : $5...

Q: You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street...

A: Calculation of size of settlement:We have both the cash flows that is which occurs today and which o...

Q: Assume the zero-coupon yields on default-free securities are as summarized in the following table...

A: Let\'s assume the par annual coupon is C per annum paid once annually.Face Value of the bond, FV = $...

Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired f...

Q: Critique this statement: “The use of debt financing lowers the net income of the firm, and hence deb...

A: The statement has two parts:The use of debt financing lowers the net income of the firm,Hence debt f...

Q: A firm has the following investment Cash inflows Year A B ...

A: g. This question asks for Project A's Internal Rate of Return and the decision if the firm's cost of...

Q: If you were a CFO considering implementation of a dividend payout policy, which factors would influe...

A: Dividend payout policy: An organization's dividend policy manages the measure of dividends paid out ...

Q: If one British pound can purchase $1.85 U.S. dollars, how many British pounds can one U.S. dollar bu...

A: Excel spread sheet for calculation of British pounds:

Q: Countess Corp. is expected to pay an annual dividend of $3.97 on its common stock in one year. The c...

A: Calculating the cost of equity using the formula of dividend discounting model. We have,Current pric...

Q: The rise of globalization is due to the many companies that have become multinational corporations f...

A: Relative interest rate constitute as one of the major factors in determining the exchange rates. For...

Q: The ROA of your firm is 5%. The firm also has a debt-asset ratio of 70%. If your firm reinvests 100%...

A: Calculating the value of internal growth rate. We have,Internal Growth Rate = ROA X RR / (1 – ROA X ...

Q: Texas Tools Inc. has $20 million in earnings, pays $2.75 million in interest to bondholders, and pay...

A: Calculating the value of common stockholder’s residual claims to earnings. We have,Out of the total ...