Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate Seiko's current salary is $98,500. Her marginal tax rate is 32 percent and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for Idaho Office Supply. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $87,100 per year, but it allows employees to purchase one new car per year at a discount of $17700. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply offers her a $12.400 raise. Answer the following questions about this analysis. b-1. Financially, which offer is better for Seiko on an after-tax basis? Car dealer's offer O Current employer's offer OBoth offers b-2. By how much is the offer better for Seiko on an after tax basis (Assume that Seiko is going…

Josh is a corporate account manager at a company that sells musical instruments to other businesses. He receives a monthly salary of $1,500 plus commission on any new sales that he makes as part of his daily interactions with his customers. If Josh's sales were $67,000 last month and he earned $3,041, what is his commission rate? Note: Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56% Commission rate = 0.00 %

(Consider This) Mason, a professional house painter, needs his tax return prepared; in which situation below would he choose to hire Madison, the CPA, rather than sacrifice time (and income) from house painting? The CPA can prepare the tax return in 2 hours and would charge $50 per hour, Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. The CPA can prepare the tax return in 10 hours and would charge $50 per hour, Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. The CPA can prepare the tax return in 2 hours and charge $100 per hour; Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. Mason would not hire Madison in any of these situations described.

Ted works for a large Accounting Firm. His normal commute to the office is 20 miles. Today, he drove 25 miles from home to a client. From the client, Ted drove 5 miles to the E&Y office. From the Accounting Firm office, he drove 20 miles home for the night. Accounting Firm reimbursed Ted for 50 miles of driving at $.57.5 per mile. How much of the 50 mile reimbursement should be taxable to Ted? 25 miles 50 miles 45 miles 20 miles

Mr. Smith has had a very good year. It is early November, and he wants to ensure he sets enough money aside to pay his taxesnext April. He has outlined his anticipated income for tax seasonand some of his plans going forward. Mr. Smith works several jobs, and he also has some investments.In his normal job as a general contractor he made $70,000 last year with business deductions of $13,000. He also works at a restaurant as a cook in order to learn more about that business. He made $20,000 last year at that job. He has accumulated an enormous amount in property investments. His properties are now worth nearly $500,000 (an increase of $100,000 from last year). He is still paying off many of these properties and payed roughly $30,000 in interest last year (a tax deduction). Since he did not sell any of his property, we will assume that he does not need to pay taxes on its increase in value. We will also assume that the standard deduction is $14,000. We also assume that Mr. Smith has no…

Mr. Smith has had a very good year. It is early November, and he wants to ensure he sets enough money aside to pay his taxesnext April. He has outlined his anticipated income for tax seasonand some of his plans going forward. Mr. Smith works several jobs, and he also has some investments.In his normal job as a general contractor he made $70,000 last year with business deductions of $13,000. He also works at a restaurant as a cook in order to learn more about that business. He made $20,000 last year at that job. He has accumulated an enormous amount in property investments. His properties are now worth nearly $500,000 (an increase of $100,000 from last year). He is still paying off many of these properties and payed roughly $30,000 in interest last year (a tax deduction). Since he did not sell any of his property, we will assume that he does not need to pay taxes on its increase in value. We will also assume that the standard deduction is $14,000. We also assume that Mr. Smith has no…

Seiko’s current salary is $124,500. Her marginal tax rate is 32 percent and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for Idaho Office Supply. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $108,000 per year, but it allows employees to purchase one new car per year at a discount of $20,700. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply offers her a $12,500 raise. Answer the following questions about this analysis.   c. What before-tax salary would Seiko need to receive from Idaho Office Supply to make her financially indifferent (after taxes) between receiving additional salary from Idaho Office Supply and accepting a position at the auto dealership?

Seiko's current salary is $98,500. Her marginal tax rate is 32% and she fancies European sports cars. She purchases a new auto every year. Seiko is currently a manager for Idaho Supply Company. Her friend, knowing her interest in sports cars, tells her about a manager position at the local BMW and Porche dealer. The new position pays only $87,100 per year, but it allows employees to purchase one new car per year at a discount of $17,700. This discount qualifies as a non-taxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Supply Company offers her a $12,400 raise. Answer the following questions about this analysis.  (a) What is the annual after-tax cost to the Idaho Supply Company with the $12,400 increase? (Ignore payroll taxes) (b-1) Financially which offer is better on an after-tax basis?  (b-2)  By how much is the offer better for Seiko on an after tax basis (Assume that Seiko is going to purchase the car whether she switches jobs or not)

Gerry likes driving small cars and buys nearly identical ones whenever the old one needs replacing. Typically, he trades in his old car for a new one costing about $15 000. A new car warranty covers all repair costs above standard maintenance (standard maintenance costs are constant over the life of the car) for the first two years. PART A: After two years, his records show an average repair expense (over standard maintenance) of $2500 in the third year (at the end of the year), increasing by 50 percent per year thereafter. If a 30 percent declining-balance depreciation rate is used to estimate salvage values and interest is 8 percent, how often should Gerry get a new car with this cost in the third year? PART B: After two years, his records show an average repair expense (over standard maintenance) of $1500 in the third year (at the end of the year), increasing by 50 percent per year thereafter. If a 30 percent declining-balance depreciation rate is used to estimate salvage values…