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Student no. 23319193 FINA1109 –
Managing Your Personal Finances Assignment PART A –
Assessing Financial Vulnerability 1.
Before tax income: $62,750 First $18,200 –
Nil Next $26,800 taxed 19% = $5092 Next $17,750 taxed 32.5% = 5768.75 Plus 2% Medicare Levy on $62,750 = 1255 5092 + 5768.75 + 1255 = $12115.75 Average tax rate = 12,115.75/62,750 =19.3% Effective Marginal Tax Rate = Every extra dollar she pays 32.5% + 2% = 34.5% tax After tax income = $62,750 –
$12,115.75 = $50,634.25 2.
One way Beth may be able to increase her after tax income is through investing in shares of EFTs. Qualified dividends, together with long-term realized capital gains on stocks or from ETFs, are considered as “preferred income”
and are taxed at a lower rate than ordinary income (Golden, 2019). Beth can only afford to invest small amounts, however if she does this regularly and starts early, she may be able to increase her savings. Investments do come with some degree of risk, so Beth should only invest what she can afford to lose. 3.
Monthly Liabilities = 800 + 400 + 200 + 60 = $1460 Cash Savings =$3500 Basic Liquidity Ratio
= $3500/$1460 = 2.4 Savings Ratio
= $3500/48,000 x 100 = 7.29 Beth can roughly cover her expenses for two and a half months without income, this means her ability to maintain her current standard of living is extremely vulnerable if she were to lose her income for four months. If Beth was unable to meet her spending commitments, late payments may incur a late fee and/or show on her credit report, affecting Beth’s credit score. For example, if she was late paying her rent by over 60 days, this would show on Beth’s credit report. Late payments on your credit report can be damaging to your credit reputation, as it can stay on your credit file for up to 5 years, making you less attractive to lenders if it remains on your file.
Student no. 23319193 (CreditSavvy, 2018)
. Failure to repay a car loan will result in the seizure of the vehicle. The inability to repay loans and day-to-day financial commitments will result in the lender auctioning off the property after the legal process has been completed, and it will likely result in a damaged reputation. Beth also has a low savings ratio of 7.29. A low savings ratio is not uncommon for young people who have just gotten into the workforce as they have not had time to accumulate a lot of savings. 4.
Income protection through superannuation does not cover loss of income due to reduced hours or job loss, Beth’s income protection insurance will provide cover if she becomes temporarily disabled through illness or injury and is unable to work. Superannuation income protection can pay 75% of your income if illness or injury prevents you from working. (Daniel Herborn, 2020)This greatly reduces her financial vulnerability to loss of income, as without income protection she would not be able to cover her expenses for very long. 5.
Debt diversification across time refers to “the tendency of consumers to hold and deposit income dollars in a low-interest (taxable) bank account rather than using the funds to reduce outstanding debt balances immediately, in which the interest charge accumulates at higher (“non
-tax-
deductible”) rates.” (Milevsky, 2010) Beth’s liquid assets and current liabilities reflect this idea of debt diversification across time as most of her liquid assets are held in her savings account which is a low interest taxable account and she is not paying off her outstanding debts immediately, for example, she could be paying off her HECS debt more regularly. Liquidity Ratio Liquid assets = $3500 + $9000 + $8800 = $21300 Monthly Liabilities = 800 + 400 + 200 + 60 = $1460 Liquidity ratio = 21300/1460 x 100 = 14.59 Debt ratio Total debt = 21000 + 3000 = 24000 Disposable income = 48000 Debt ratio = 24000/48000 = 0.5 6.
Beth should aim to increase the savings in her bank account by setting a specific goal over a certain time frame. By increasing her savings, she can improve her basic liquidity ratio. This will lessen her vulnerability to the risk of losing income over a period of time. In her current financial position, if Beth were to lose her main source
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PO. 379
#1*
1 Which of the following represents financially
responsible actions?
L Spending within your means
IL. Paying minimum credit.card paymentseach
month
III. Paying yourself first
IV. Spending money according to budget
A land IV only
B I, I, and IV only
C l and Il only
D IV only
D.
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215T 55209796/chapter/6/section/1
ntitative Reasoning I home > 6.1: Personal finance
E zyBo
Monthly, Val's net earnings are $4,500, and expenses are $4,000. How much
should Val have in savings for a 3-month emergency fund?
$ Ex: 12345 :
2.
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assignment: Wk 5 - Readings and Assignments [due Mon]
EST
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TABLE 9-2 Rates for Retirement Savings Contributions Credit
Check my work
Modified Adjusted Gross Income
Joint Return
Head of Household
Determine the retirement savings contributions credit in each of the following independent cases Use
Table 9-2
Over
0
Not Over
Over
Not Over
$ 41,000
S
0
$ 30,750
All Other Filing Status
Over
S O
Applicable
Percentage
Not Over
$ 20,500
50%
Retirement
Savings
Contributions
41,000
44,000
30,750
33,000
20,500
22,000
20%
44,000
68,000
33,000
51,000
22,000
34,000
10%
Credit
68,000
51,000
34,000
0%
A married couple filing jointly with modified AGI of $37.500 and an IRA contribution of $1,800.
b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1.900
c. Ahead of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,990
d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,800.
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Determine the amount of the child tax credit in each of the following cases:
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LTE KB/S 4G
> Answer is complete but not entirely correct.
a. A single parent with modified AGI of $214,800 and one child age 4.
b. A single parent with modified AGI of $79,400 and three children ages 7, 9, and 12.
c. A married couple, filing jointly, with modified AGI of $409,333 and two children age 14 and 16.
d. A married couple, filing jointly, with modified AGI of $133,455 and one child, age 13.
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Child Tax
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S
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S
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6,000 X
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Balance on April 1, 2020Debtors control Dr. $65, 145Debtors control Cr. 600Creditors control Dr. 950Creditors control Cr. 75, 500Totals for the month of April 2020Cash purchases 35, 600Credit purchases 62, 600Cash Sales 47, 000Credit Sales 75, 000Contra entry: Set off 1, 800Refund to cash customers 2, 800Bad debt written off 3, 300Discount Allowed 3, 750Total payments to suppliers 87, 000Total receipt from customers 98, 800Discount received 5, 500Dishonoured cheques: customers 2, 900Increase in the allowance for bad debts 2, 100Return Inwards 2, 400Return Outwards 15, 200Balances at 30 April 2020Debtors control: Dr. ? Cr: $8 300Creditors control: Dr. $7 500 Cr: ?Required: Prepare the Sales ledger control account Prepare the Purchases control account
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es
Determine the retirement savings contributions credit in each of the following independent cases. Use Table 9-2.
a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,790.
b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,880.
c. A head of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,980.
d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,775.
Retirement
Savings
Contributions
Credit
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EXHIBIT 8-11 2021 Earned Income Credit Table
(4)
(1)
(3)
Maximum Earned
Credit Phase-Out for
AGI (or earned income
Income Eligible
Maximum
Credit
Qualifying
Children
(2)
if greater) Over This
Amount
for Credit
Credit %
(1) × (2)
Married taxpayers filing joint returns
01100
11 LIS
0
$9,820
15.3%
$1.502
$14,820
1
10,640
34
3,618
25,470
15.98
2
14,950
40
5,980
25,470
21.06
3+
14.950
45
6.728
25,470
21.06
All taxpayers except married taxpayers filing joint returns
ORD CHIT EL
0
$9,820
15.3%
$ 11,610
$1.502
3,618
1
10,640
34
19,520
2
14.950
40
5,980
19,520
3+
14,950
45
6,728
19.520
Source: Internal Revenue Code. "Rev. Proc. 2020-45. " www.irs.gov.
SI DU
નવીura વ
(5)
Phase-Out
Percentage
15.3%
15.3%
15.98
21.06
21.06
No Credit When AGI
(or earned income if
greater) Equals or
Exceeds This Amount
(4) + [(3)/(5)]
$24,637
48,108
53,865
57,414
$21,427
42,158
47,915
51.464
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C. P177.60
d.
P29.60
P74.40
P300
P620
30%
e.
4. Find the (a) cash discount and (b) net amount due if the following invoices are paid within the discoun
period.
Net invoice price
P3,265
Net amount due
Terms of payment
3 п
Cash discount
10'30
P 1,342
15'60
2 n
P985
5'15
5. Find the (a) deadline for discount period, (b) deadline for credit period, (c) cash discount and (d)
amount due for the following cases.
Deadline
of
discount
Net
Deadline
of credit
Invoice
Terms of
Cash
Invoice
date
amount
due
amount
payment
discount
period
period
1 n
P 1,675
Jan. 15
15'45
P645
Feb. 25
10'30
1n
P 895
March 12
10'45
3 2
P785
April 22
.
15'20'90
6. The net invoice price of a wall clock is P287.00. If the discount granted was 18%, find:
a. Net invoice price rate
b. List price
C. Discount
7. The net invoice price of a dining table is P6,187.50, representing 75% of the list price. Find:
a. List price
b. Discount
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EXHIBIT 8-10 2023 Earned Income Credit Table
Qualifying
Children
0
1
2
34
0
1
2
3+
(1)
Maximum Earned
Income Eligible
for Credit
$7,840
11,750
16,510
16,510
(2)
Credit %
7.65%
34
40
45
(3)
Maximum
Credit
(1) x (2)
Married taxpayers filing joint returns
$16,370
28,120
28,120
28,120
(4)
Credit Phase-Out for
AGI (or earned income
if greater) over This
Amount
$ 600
3,995
6,604
7,430
7.65%
34
40
45
$7,840
11,750
3,995
16,510
6,604
16,510
7,430
Source: Internal Revenue Code. "Rev. Proc. 2022-38." www.irs.gov
All taxpayers except married taxpayers filing joint returns
$ 600
(5)
Phase-Out
Percentage
$9,800
21,560
21,560
21,560
7.65%
15.98
21.06
21.06
7.65%
15.98
21.06
21.06
No Credit When AGI
(or earned income if
greater) Equals or
Exceeds This Amount
(4) + [(3)/(5)]
$24,210
53,120
59,478
63,398
$17,640
46,560
52,918
$56,838
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Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-
up company.
What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use
Exhibit 8-10
b. Julie paid $5,650 to the day care center and her AGI is $52,600 (all salary).
Child and dependent care credit
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Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-
up company.
What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use
Exhibit 8-10:
a. Julie paid $2,260 to the day care center and her AGI is $52,600 (all salary).
Child and dependent care credit
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3 103 Spring 2021
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How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made.
An account with quarterly compounding and an APR of 7.32%
Sshould be deposited today.
(Do not round until the final answer. Then round to the nearest cent as needed.)
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A Question 11 (0.15 points) Retake question
You as a young worker decide to use money in your traditional IRA account to
pay for an unexpected $8250 expense. If your withdrawal faces a 10% early
withdrawal penalty and you pay a marginal tax rate of 20%, how much must you
take out of your account in order to pay the expense, the penalty, and the taxes
on your withdrawal?
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Answer
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The total amount you need to withdraw (X) must be the number such that when
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Choose the best option
O Differences between net income and associated cash receipts and disbursements.
The primary purpose of a statement of cash flows is to provide relevant information about
O An enterprise's ability to generate future positive net cash flows.
O The cash receipts and cash disbursements of an enterprise during a period.
OAn enterprise's ability to meet cash operating needs.
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Locker Rent 3500
Income from Government securities 2274
Interest on deposits 473
Transfer fees received 576
Rent and Lighting 767
From the above information Total Non-Interest income will be:
a.
OMR 5790
b.
OMR 6350
c.
OMR 6530
d.
OMR 7590
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Marginal Tax Rate Chart
Tax Bracket
Marginal Tax Rate
$0-$10,275
10%
$10,276-$41,175 12%
$41,176-$89,075 22%
$89,076-$170,050 24%
$170,051-$215,950 32%
$215,951-$539,900 35%
> $539,901
37%
Determine the amount of taxes owed on a taxable income of $38,520.
$3,852.00
$4,416.90
$4,622.40
$8,474.40
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A
B
D
F
1 Loan (PV)
$ 300,000.00
2 APR
4.50%
3 Monthly Rate
4 NPER
5 Monthly Payment
0.38%
360
$1,520.06
6
7 Payment Number
Beg Balance
Interest
Principal
8
1
?
?
10
3
?
11
4
12
?
13
6
14
7
?
15
8.
?
16
9
?
17
10
18
11
19
12
?
20
21 Cumulative Totals after Year 1
22 Interest
23 Principal Paid
24
25 What if the goal is $1,400 monthly payment?
26 Monthly Payment
27 Monthly Rate Needed ?
1,400.00
28 APR Needed
.....c.
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Fund out the credit sales-
Opening debtors Rs.12000
Closing debtors Rs14000
B/R accepted by Debtors Rs. 13000
Cash received from debtors Rs 38400
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CENGAGE MINDTAP
Ch 07: Assignment - Using Consumer Loans
12. Buy on time or pay cash?
You are going to make a substantial purchase. You have enough money to pay cash, but don't know if that's the way to make best use of your assets.
Maybe you should take out an installment loan to make the purchase and invest the cash you would otherwise have used to pay for it.
Use the information provided to complete the following worksheet and analyze how the numbers work out most favorably for you. For simplicity,
compounding is ignored in calculating both the cost of interest and interest earnings. [Note: Enter your dollar answers rounded to the nearest two
cents and precede numbers that are less than zero (0) with a minus sign (-).]
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PROJECT 8 QR Spring 2020 Finances - Word
A jrush416
erences
Mailings
Review
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A
Aa -
三 T
AaBbCcDc AaBbCcDc AaBbC AAB6CCE
TNormal
T No Spac. Heading 1
Heading 2
Paragraph
Styles
5. Suppose you want to have $900,000 forretirement in 30 years. Your account earns 8% interest.
a) How much would you needto deposit in the account each month
b) How much interest will you earn?
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Use these factors to answer the following questions.
i
PV$1
FV$1
PVA
FVA
3
8%
0.79383
1.25971
2.5771
3.2464
5
8%
0.68058
1.46933
3.99271
5.8666
60
0.67%
0.67121
1.48985
49.31843
73.4769
You decide to save $410 every month for five years to buy a new car. How much will you have at the end of the five years if you
1
earn 8%? $
(round to nearest dollar)
You want to buy a $30,000 car today and will be making monthly payments for the next five years. What is your car payment if
your borrowing rate is 8%? $
2
(round to nearest dollar)
3 You accepted a job offer with a local company that has offered to give you a signing bonus of $10,000 today or a $13,000 bonus
in 3 years (guaranteed). Your current investment rate is 8%. What is the best economic decision, take the bonus today or wait 3
years?
4 You plan to invest $2,500 every year for the next 5 years. What will be the value of your investment at the end of the 5 years if
you can earn 8% annual interest? $
(round
nearest dollar)
5 Your…
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Years Bank Loan advance2018 STANBIC 2,584,7352019. STANBIC. 3,946,591
2020. STANBIC 4,373,5292018. BARCLAYS 3,204,859
2019. ABSA 4,082,295
2019. Absa. 2,09,501
2020. ABSA. 244,620
2020. Absa. 4,481,173
Question:
Calculate the Herfindahl-Hirschman Index (HHI) for each year using loan advances and comment on the level of competition.
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Q12
You are required to compute the sum of Net social income to staff, community and general public as a whole, if:
Net social income to General public is OMR 900
Net social income to staff is OMR 600 and
Net social income to community is OMR 400.
a.
None of them is correct
b.
OMR 1,000
c.
OMR 1,900
d.
OMR 1,500
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Question 12 of 28
Use these present value factors to answer the following question:
Present Value of $1
Discounted at 6% per
Periods
Period
0.943
2
0.890
3
0.840
0.792
4
5
0.747
If an individual deposits $20600 in a savings account today, what amount of cash would be available two years from toda
O $20600÷0.943 × 2
$20600 x 0.890
$20600 0.890
$20600 x 0.890 × 2
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!
Required information
[The following information applies to the questions displayed below.]
In 2021, Zach is single with no dependents. He is not claimed as a dependent on another's return. All of his income is from
salary and he does not have any for AGI deductions.
What is his earned income credit in 2021 in the following alternative scenarios? Use Exhibit 8-11. (Round your intermediate
and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)
d. Zach is 17 years old and his AGI is $5,000.
Earned income credit
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Use these factors to answer the following questions.
i
PV$1
FV$1
PVA
FVA
3
8%
0.79383
1.25971
2.5771
3.2464
5
8%
0.68058
1.46933
3.99271
5.8666
60
0.67%
0.67121
1.48985
49.31843
73.4769
1
You decide to save $410 every month for five years to buy a new car. How much will you have at the end of the five years if you
earn 8%? $
(round to nearest dollar)
You want to buy a $30,000 car today and will be making monthly payments for the next five years. What is your car payment if
your borrowing rate is 8%? $
(round to nearest dollar)
3 You accepted a job offer with a local company that has offered to give you a signing bonus of $10,000 today or a $13,000 bonus
in 3 years (guaranteed). Your current investment rate is 8%. What is the best economic decision, take the bonus today or wait 3
years?
4 You plan to invest $2,500 every year for the next 5 years. What will be the value of your investment at the end of the 5 years if
(round to nearest dollar)
you can earn 8% annual interest? $
Your…
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Interest on balance with Central bank RO 3500
Interest on fixed deposit
RO 1100
Locker rent
RO 520
Transfer fees paid
RO 880
From the above information, the operating profit will be:
O a. RO 2040
O b. RO 1040
C.
Ос. RO 2020
O d. RO 3040
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Jacquiline is unmarried and age 32. Even though she participates in an employer sponsored retirement plan, Jacquiline contributed
$3,000 to a traditional IRA during the year. Jacquiline files as a head of household, her AGI before the contribution is $43,000, and her
marginal tax rate is 12 percent. (Use Exhibit 13-8)
What is the after-tax cost of her $3,000 traditional IRA contribution?
After-tax cost
$
2,350
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Question 10
Using the following balance sheet items and amounts, calculate the total current
liabilities.
• Money market account $7844
• Retirement account $90600
• Medical bills $395
Checking account $3877
• Credit card balance $1309
Your Answer:
Answer
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- Required PO. 379 #1* 1 Which of the following represents financially responsible actions? L Spending within your means IL. Paying minimum credit.card paymentseach month III. Paying yourself first IV. Spending money according to budget A land IV only B I, I, and IV only C l and Il only D IV only D.arrow_forward215T 55209796/chapter/6/section/1 ntitative Reasoning I home > 6.1: Personal finance E zyBo Monthly, Val's net earnings are $4,500, and expenses are $4,000. How much should Val have in savings for a 3-month emergency fund? $ Ex: 12345 : 2. Check Next Provide feedback assignment: Wk 5 - Readings and Assignments [due Mon] EST 29/1arrow_forwardorki Saved Help Save & Exit Submit TABLE 9-2 Rates for Retirement Savings Contributions Credit Check my work Modified Adjusted Gross Income Joint Return Head of Household Determine the retirement savings contributions credit in each of the following independent cases Use Table 9-2 Over 0 Not Over Over Not Over $ 41,000 S 0 $ 30,750 All Other Filing Status Over S O Applicable Percentage Not Over $ 20,500 50% Retirement Savings Contributions 41,000 44,000 30,750 33,000 20,500 22,000 20% 44,000 68,000 33,000 51,000 22,000 34,000 10% Credit 68,000 51,000 34,000 0% A married couple filing jointly with modified AGI of $37.500 and an IRA contribution of $1,800. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1.900 c. Ahead of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,990 d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,800.arrow_forward
- 10:28 Search or type URL Chegg Home Expert Q&A My solutions Hide student question Student question Determine the amount of the child tax credit in each of the following cases: Answer is complete but not entirely correct. 3 Determine the amount of the child tax credit in each of the following cases: ||| Vol) 28.43 LTE KB/S 4G > Answer is complete but not entirely correct. a. A single parent with modified AGI of $214,800 and one child age 4. b. A single parent with modified AGI of $79,400 and three children ages 7, 9, and 12. c. A married couple, filing jointly, with modified AGI of $409,333 and two children age 14 and 16. d. A married couple, filing jointly, with modified AGI of $133,455 and one child, age 13. о ا... Child Tax Credit Allowed S $ S S 1,275 X 6,000 X 1,550 x 2,000 X < 91% Notifications Time Left:arrow_forwardBalance on April 1, 2020Debtors control Dr. $65, 145Debtors control Cr. 600Creditors control Dr. 950Creditors control Cr. 75, 500Totals for the month of April 2020Cash purchases 35, 600Credit purchases 62, 600Cash Sales 47, 000Credit Sales 75, 000Contra entry: Set off 1, 800Refund to cash customers 2, 800Bad debt written off 3, 300Discount Allowed 3, 750Total payments to suppliers 87, 000Total receipt from customers 98, 800Discount received 5, 500Dishonoured cheques: customers 2, 900Increase in the allowance for bad debts 2, 100Return Inwards 2, 400Return Outwards 15, 200Balances at 30 April 2020Debtors control: Dr. ? Cr: $8 300Creditors control: Dr. $7 500 Cr: ?Required: Prepare the Sales ledger control account Prepare the Purchases control accountarrow_forwardes Determine the retirement savings contributions credit in each of the following independent cases. Use Table 9-2. a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,790. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,880. c. A head of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,980. d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,775. Retirement Savings Contributions Creditarrow_forward
- EXHIBIT 8-11 2021 Earned Income Credit Table (4) (1) (3) Maximum Earned Credit Phase-Out for AGI (or earned income Income Eligible Maximum Credit Qualifying Children (2) if greater) Over This Amount for Credit Credit % (1) × (2) Married taxpayers filing joint returns 01100 11 LIS 0 $9,820 15.3% $1.502 $14,820 1 10,640 34 3,618 25,470 15.98 2 14,950 40 5,980 25,470 21.06 3+ 14.950 45 6.728 25,470 21.06 All taxpayers except married taxpayers filing joint returns ORD CHIT EL 0 $9,820 15.3% $ 11,610 $1.502 3,618 1 10,640 34 19,520 2 14.950 40 5,980 19,520 3+ 14,950 45 6,728 19.520 Source: Internal Revenue Code. "Rev. Proc. 2020-45. " www.irs.gov. SI DU નવીura વ (5) Phase-Out Percentage 15.3% 15.3% 15.98 21.06 21.06 No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] $24,637 48,108 53,865 57,414 $21,427 42,158 47,915 51.464arrow_forwardC. P177.60 d. P29.60 P74.40 P300 P620 30% e. 4. Find the (a) cash discount and (b) net amount due if the following invoices are paid within the discoun period. Net invoice price P3,265 Net amount due Terms of payment 3 п Cash discount 10'30 P 1,342 15'60 2 n P985 5'15 5. Find the (a) deadline for discount period, (b) deadline for credit period, (c) cash discount and (d) amount due for the following cases. Deadline of discount Net Deadline of credit Invoice Terms of Cash Invoice date amount due amount payment discount period period 1 n P 1,675 Jan. 15 15'45 P645 Feb. 25 10'30 1n P 895 March 12 10'45 3 2 P785 April 22 . 15'20'90 6. The net invoice price of a wall clock is P287.00. If the discount granted was 18%, find: a. Net invoice price rate b. List price C. Discount 7. The net invoice price of a dining table is P6,187.50, representing 75% of the list price. Find: a. List price b. Discountarrow_forwardEXHIBIT 8-10 2023 Earned Income Credit Table Qualifying Children 0 1 2 34 0 1 2 3+ (1) Maximum Earned Income Eligible for Credit $7,840 11,750 16,510 16,510 (2) Credit % 7.65% 34 40 45 (3) Maximum Credit (1) x (2) Married taxpayers filing joint returns $16,370 28,120 28,120 28,120 (4) Credit Phase-Out for AGI (or earned income if greater) over This Amount $ 600 3,995 6,604 7,430 7.65% 34 40 45 $7,840 11,750 3,995 16,510 6,604 16,510 7,430 Source: Internal Revenue Code. "Rev. Proc. 2022-38." www.irs.gov All taxpayers except married taxpayers filing joint returns $ 600 (5) Phase-Out Percentage $9,800 21,560 21,560 21,560 7.65% 15.98 21.06 21.06 7.65% 15.98 21.06 21.06 No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] $24,210 53,120 59,478 63,398 $17,640 46,560 52,918 $56,838arrow_forward
- Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company. What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use Exhibit 8-10 b. Julie paid $5,650 to the day care center and her AGI is $52,600 (all salary). Child and dependent care creditarrow_forwardJulie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company. What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use Exhibit 8-10: a. Julie paid $2,260 to the day care center and her AGI is $52,600 (all salary). Child and dependent care creditarrow_forwardV Content Pearson (Assignments) - MA Ô https://www.mathxl.com/Student/PlayerTest.aspx?testld%3D225147196 3 103 Spring 2021 st: Test 2 (Finance) Online nis Question: 1 pt 5 of 19 (1 complete) ▼ How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made. An account with quarterly compounding and an APR of 7.32% Sshould be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.)arrow_forward
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