Chapter 6

Problem 1: Solution 1. valueable IncomeTax Rate $0 - $20,00010% $20,000 - $50,000$2,000 + 20% of the amount everyplace $20,000 > $50,000$8,000 + 30% of the amount over $50,000 foremost $20,000 × .10 = $ 2,000 Next$30,000 × .20 = $ 6,000 Next$10,000 × .30 = $ 3,000 Total$60,000 $11,000 = Total Tax indebtedness 2.Federal Income Taxes / Taxable Income = Average Tax Rate = $11,000 / $60,000 = 18.33% Problem 2: Solution The luck terms of building a novel lodgement facility on this land is the best forego opportunity of selling the land today for $500,000 net of appraise. exchange Flow merchandising price$500,000 $500,000 salute 100,000 Gain on sale 400,000 Incr. tax rate 0.3 -120,000 Net cash range $380,000 Problem 3: Solution 1.The account expenses of the rooms subdivision meat $21,450. These expenses accept the paysheet and related expenses of $20,000 and other expenses of $1,450. 2.Overhead expenses total $77,356. These expenses include both expense other than the direct expenses of the benefit centers. Therefore, the overhead expenses include the undistributed operating expenses, fixed charges, and income taxes. 3. be governable by the GM and by those under his/her management include both expenses prior to gross operating profit. Thus, the undistributed operating expenses and direct be of the profit centers are the controllable expenses. 4.The fixed costs are the fixed charges of rent, property taxes, insurance, interest, and depreciation. otherwise expenses also whitethorn be fixed, but further investigation would be required. 5.The cost of sales is considered to be a protean expense. Problem 4: Solution 1. Electric ExpenseOccupancy % High month (August)$7,200 78% Low Month (December)$5,500 50% $1,700 28% compound monetary value Difference / Occupancy % Difference = Variable Cost per 1% of Occupancy = $1,700 / 28% = $60.71 2. Dec ember Occupancy % ×...If you insufficiency! to get a full essay, order it on our website: OrderCustomPaper.com

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