Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 19, Problem 31P
To determine
Calculate the percentage of profit sharing contribution by which the company can maximize the annual additions of its participants.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
When calculating Return on Investment (ROI) we take the benefit/cost x 100. Or as
we reviewed in class: ROI= (average annual profit/total investment) x 100.
So, if I invest in Fall protection for my company at a cost of $10,000, and for the
purposes of calculation, you determine if it saves that company 10% of it's fall-
related WC claims annually, the annual benefit would be around $3,000 annually,
what would you project your ROI to be? (one best answer)
30%
10%
$3,000
I don't need to calculate the ROI, because it is required by law.
Southern Sisters is considering Plan 1, which is estimated to have sales of $40,000 and costs of $15,000. The company currently has sales of $38,000 and costs of $14,000.
Question:
The incremental increase in profit if Plan 1 is selected is _______.
The payback reciprocal is an estimate of the internal rate of return. NUBD Co. is considering the acquisition of a merchandise picking system to improve customer service. Annual cash returns on investment cost of P1.2 million is P240,000. Useful life is estimated at 8 years. The company’s cost of capital is 14% and income tax rate is 35%. Calculate NUBD’s payback reciprocal for this investment.
Chapter 19 Solutions
Individual Income Taxes
Ch. 19 - Prob. 1DQCh. 19 - Prob. 2DQCh. 19 - Prob. 3DQCh. 19 - Prob. 4DQCh. 19 - Prob. 5DQCh. 19 - Prob. 6DQCh. 19 - Prob. 7DQCh. 19 - Prob. 8DQCh. 19 - Prob. 9DQCh. 19 - Prob. 10DQ
Ch. 19 - Prob. 11DQCh. 19 - Prob. 12DQCh. 19 - Prob. 13DQCh. 19 - Prob. 14CECh. 19 - Prob. 15CECh. 19 - Prob. 16CECh. 19 - Prob. 17CECh. 19 - Zack, a sole proprietor, has earned income of...Ch. 19 - Prob. 19CECh. 19 - Prob. 20CECh. 19 - Prob. 21CECh. 19 - Prob. 22CECh. 19 - Prob. 23CECh. 19 - Prob. 24CECh. 19 - Prob. 25CECh. 19 - On April 5, 2017, Gustavo was granted an NQSO for...Ch. 19 - Prob. 27PCh. 19 - Prob. 28PCh. 19 - Prob. 29PCh. 19 - Prob. 30PCh. 19 - Prob. 31PCh. 19 - Prob. 32PCh. 19 - Prob. 33PCh. 19 - Prob. 34PCh. 19 - In 2019, Magenta Corporation paid compensation of...Ch. 19 - Prob. 36PCh. 19 - Prob. 37PCh. 19 - Prob. 38PCh. 19 - Prob. 39PCh. 19 - Prob. 40PCh. 19 - Prob. 41PCh. 19 - Prob. 42PCh. 19 - Prob. 43PCh. 19 - Prob. 44PCh. 19 - Carri and Dane, ages 34 and 32, respectively, have...Ch. 19 - Prob. 46PCh. 19 - Prob. 47PCh. 19 - Prob. 48PCh. 19 - Prob. 49PCh. 19 - Prob. 50PCh. 19 - Prob. 51PCh. 19 - Prob. 52PCh. 19 - Prob. 53PCh. 19 - Prob. 54PCh. 19 - Prob. 55PCh. 19 - Prob. 56PCh. 19 - Prob. 57PCh. 19 - Prob. 1RPCh. 19 - Prob. 2RPCh. 19 - Prob. 3RPCh. 19 - Prob. 6RPCh. 19 - Prob. 8RPCh. 19 - Prob. 1CPACh. 19 - Ryan is 39 years old and works as a real estate...Ch. 19 - Prob. 3CPACh. 19 - Prob. 4CPA
Knowledge Booster
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
- 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. 2-a. Compute the simple rate of return promised by the outlet. 2-b. If Mr. Swanson requires a simple rate of return of at least 18%, should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3-b. If Mr. Swanson wants a payback of two years or less, will he acquire the franchise?arrow_forwardA company is considering the following three compensation plans for the salespeople listed in the table below. Which of these will be the most expensive? Which will be the least expensive? Is the monetary cost the only consideration for a company? Plan A: Give each salesperson a commission of 10% on the first $250,000 of sales made each year and 12% on the next $250,000. Plan B: Give each salesperson a salary of $10,000 a year and 5% commission on all sales made each year. Plan C: Give each salesperson a salary of $25,000 a year and a bonus of 4% commission on all sales made over $250,000 in a year. Salesperson Estimated Sales for Next Year Herndon $300,000 MacLeon $270,000 Menon $190,000 Baker $290,000 Hand $225,000 Zank $325,000 Smith $310,000 2. Based on the chapter content on motivation, what factors cause you to increase or decrease the amount of effort – your motivation to work – you put into earning your desired grade in a class? Your grade is your performance level. What…arrow_forwardAn organization's objective is to increase its production by 20 percent next year. How do you consider the Accounting Department of the company? Line or staff? Justify your answer.arrow_forward
- Suppose that your local coffee shop estimates earning the following revenue from customers for the next five years: 194, 301, 392, 501, 580. The business will face the following costs over the same five years to service the customers: 51, 39, 30, 19, 12. There is a one-time cost of $ 1,050 to acquire the customers. Assume a 100% retention rate of the customers and no discounting of future profit. What is the customer lifetime value over the five-year period? Round answer to the nearest whole number.arrow_forwardSedgwick Inc. is considering Plan 1 which is estimated to have sales of $40,000 and costs of $15,500. The company currently has sales of $37,000 and costs of $14,000.Compare plans using incremental analysis. If Plan 1 is selected, there would be incremental decreaseincrease in profit by $ .arrow_forward1. The sales department has pitched the idea to the owner that increasing the annual sponsorship to $15,000 will increase their sales to a total of 500 canoes per year and they will hit a profit of $150,000. You are working in the finance department and the owner has asked you to explain if the sales department is correct or not. (1) What is total difference between the sales department projected profit of $150,000 and your calculation of the profit? (2) If there is a difference then why is sales amount different? (3) Should the owner increase the annual sponsorship spending and WHY? Current Costs: 450 current canoe sales $800 selling price per canoe $400 variable cost per canoe $50,000 fixed costarrow_forward
- Management would like to achieve a target profit after taxes of $300,000. The company’s income tax rate is 25 percent. What target profit before taxes is required to achieve the $300,000 after-tax?arrow_forwardWhat's the rate of return you would earn if you paid $2,880 for a perpetuity that pays $65 per year? X-1 Corp's total assets at the end of last year were $425,000 and its EBIT was $52,500. What was its basic earning power (BEP) ratio?arrow_forwardHow much is the intrinsic value of GWAPO Corporation if the required return for this business is 12%? (Use 5 decimal places for Present Value factors)arrow_forward
- Bogart Company is considering two alternatives. Alternative A will have revenues of $160,000 and costs of $100,000. Alternative B will have revenues of $180,000 and costs of $125,000. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income.arrow_forwardIf the Resort Operating Center plans a targeted operating income of $210,000 and the tax rate is 30%, what is the organization's target net income?arrow_forwardSuppose an investor gave you 150,000 to start a business.you gave investor 50 percent of your investment .Your revenue one was $479,600,your goods sold was $239,600 and your total operating expenses was $144,080.What ROI will your investor receive this year for his 50 percent ownership in the company?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT