Suppose you buy a share of stock at a price of $100 and a year later it is worth $125. Suppose further that the rate of inflation for the year is 10%. If you are subject to a 15% capital gains tax, how much is your total tax burden

Answers

Answer 1

The total tax burden will be calculated as  $3.75

What is inflation?

When the prices  of products and services increases with a given duration of time and which result increase in the cost of living is refers as situation of inflation.

To find the total tax burden-

Current value of stock=$100

After one year, value of stock=$125

To find the profit gain after one year,

$125—$100 = $25

This $25 will be considered as capital gain over stock.

Rate of tax over capital gain=15%

Total tax burden =capital gain×rate of tax on capital gain

                            =$25×15%

                            =$3.75

Therefore, the total tax burden will be $3.75.

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Related Questions

A company incurred the following costs for a new delivery truck: Purchase price $110,000 Sales tax 7,000 Delivery charge from seller's location 1,600 Special racks for storage 3,000 Normal repairs to the truck before it was used for the first time 1,100 Signs painted on the truck 2,000 Insurance on truck before it was used for the first time 3,000 What is the cost of the delivery truck

Answers

127,700

The answer I gave is the total of incurred charges.

which type of bond is certain to provide a capital loss if held to maturity?

Answers

[tex]\sf \colorbox{aqua}{Answer}[/tex]

[tex] \sf \color{blue}{Premium Bond}[/tex]

The answer is: Premium Bond

What's your annual income if you're unemployed?

Answers

$46,819

Unemployed Salary

Annual Salary Hourly Wage

Top Earners $57,500 $28

75th Percentile $57,500 $28

Average $46,819 $23

25th Percentile $32,000 $15

If an economy were experiencing a high rate of unemployment as the result of weak aggregate demand, a Keynesian economist would be most likely to recommend a. a reduction in taxes, without any offsetting reduction in government expenditures. b. maintenance of a balanced budget. c. a reduction in taxes coupled with a reduction in government expenditures of equal size. d. an increase in government expenditures coupled with an increase in taxes of equal size.

Answers

The recommendation by a Keynesian economist to tackle the high rate of unemployment as the result of weak aggregate demand is A. a reduction in taxes, without any offsetting reduction in government expenditures.

What is Unemployment?

This refers to the situation where a person or group of persons are out of work or cannot find any work.

Hence, we can see that based on Keynesian concepts that would work to tackle unemployment based on the given scenario, the most likely recommendation would be option A.

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Bad expense is estimated by the aging-of-receivables method. Management estimates that $2,950 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts.

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Disclaimer

The question is incomplete and the complete question is shown below

The following information is from the records of Pangolin Camera Shop: Bad expense is estimated by the aging-of-receivables method. Management estimates that $2,950 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts. Supporting Materials / Group of answer choices $22,950 $22,050 $21,150 $20,800

The net account receivable is $22,050

The computation of the net account receivable after the adjustment of bad debt is shown below:

Given that bad debt expense is $2950

As we know that

Net account receivable = Account receivable - bad debt expense

= $25,000 - $2,950

= $22,050

By deducting the bad debt expense from the account receivable we can get the net account receivable and the same is to be considered.

The net amount receivable is $22,050

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Kaylie assumed the cost of the sales tax on her new (used) vehicle would be around $850. In reality, it was $725. What type of variance does this represent?

1. An unfavorable variance of $850
2. A favorable variance of $125
3. A favorable variance of $850
4. An unfavorable variance of $725

Answers

Answer:

option c

Explanation:

beacuse i know hh

Option 3. A favorable variance of $850

A favorable variance of $850 type of variance does this represent.

How do you know if a variance is favorable or unfavorable?

If revenues were higher than expected, or expenses were lower, the variance is favorable. If revenues were lower than budgeted or expenses were higher, the variance is unfavorable.

A favorable variance is where actual income is more than budget, or actual expenditure is less than budget. This is the same as a surplus where expenditure is less than the available income.

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The individuals or households that want goods and services for personal consumption or use, and have the resources to buy them are part of the:

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The individuals or households that want goods and services for personal consumption or use, and have the resources to buy them are part of the consumers

Who are the consumers?

Consumers are known as the end users of any produced goods and services. They are crucial in the logistics chain in order to keep production running.

They are the set of individuals that want goods and services for their daily use and consumption purposes.

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Outline TWO benefits of using the FIFO system for Mcdonald’s

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There are several benefits for McDonald's by using FIFO methods. Here we will discuss some of them: better food hygiene, which gives more customers satisfaction; easier to reduce products near their end-date—resulting in more sales and less waste;

What is FIFO?

FIFO is a measuring tool for inventory valuation or management. In this, we have sold the goods which come first. This is called a FIFO, which is known as First In First Out.

Thus, McDonald's using the FIFO method gets such benefits as better food hygiene, which gives more customer satisfaction; easier to reduce products near their end-date – therefore more sales and less waste.

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The conversion privilege allows investors to switch from one mutual fund to another within a: Group of answer choices management group. fund family. brokerage group. switched fund. convenience group.

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The conversion privilege allows investors to switch from one mutual fund to another within a fund family.

A mutual fund investor's conversion privilege is the ability to shift money between various portfolios provided by the same mutual fund family without incurring another sales charge.

Most mutual fund providers will provide investors with the ability to transfer money across the fund's various holdings.

As their investing objectives change or market conditions change, investors may desire to move money to portfolios with alternative investment objectives. Selling and buying portfolios at the NAV will trigger a taxable event for the investor.

Therefore, the correct option is fund family.

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On May 31, Money Corporation's Cash account showed a balance of $13,500 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: Checks outstanding $ 3,050 Deposits outstanding 2,900 Non-sufficient funds check 170 Service fees 95 Error: Money Corporation wrote a check for $95 but recorded it incorrectly for $950. What is the amount of cash that should be reported in the company's balance sheet as of May 31

Answers

The amount of cash that should be reported in the company's balance sheet as of May 31 is $2,975.

What is a balance sheet?A balance sheet also referred to as a statement of financial position or a statement of financial condition in financial accounting, is a summary of the financial standing of a person or an organization, including a corporation, private limited company, sole proprietorship, business partnership, government agency, or not-for-profit organization. As of a particular date, such as the conclusion of its financial year, assets, liabilities, and ownership equity are listed. It's common to refer to a balance sheet as a "picture of a company's financial status." The balance sheet is the only one of the four fundamental financial statements that only apply at one particular period in a company's fiscal year.Solution -

Deposits outstanding = $3,050 (+)

actual amount on check my Money corporation = $95 (+)

Service fees = $170 (-)

∴ [tex]3050+95-170=2975[/tex]

So, the amount of cash that should be reported in the company's balance sheet as of May 31 is $2,975.

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Employee compensation systems are generally developed and administered by ____, and pay increases and promotions are usually recommended by ____.

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Employee compensation systems are generally developed and administered by "HRM specialists", and pay increases and promotions are usually recommended by "line managers".

What is Employee compensation systems?

Giving employees money in exchange for their work is a systematic process known as compensation. Incentives can help with hiring, work happiness, and performance, among other things.

The purpose of a compensation system is-

To recruit new employees and keep the ones you already have working for your company are your compensation's main objectives. Compensation is also utilised to boost morale and encourage individuals to perform to their highest potential.Paid time off, disability insurance, stock option plans, health insurance, life insurance,  and services like financial counselling are a few examples.

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Since restored historic buildings convey a positive externality, local governments may choose to

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Since restored historic buildings convey a positive externality, local governments may choose to restrict demotion of them and provide tax breaks for those that choose to restore them.

What is positive externality?

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting tax breaks to companies that undertake R & D.

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A bond has an average return of 6.3 percent and a standard deviation of 3.8 percent. What range of returns would you expect to see 68 percent of the time on this security

Answers

The range would be 2.5 percent to 10.1 percent.

What is Expected return?

Expected return is an important financial concept investors use when determining where to invest their funds. Calculating the expected return of a specific investment or portfolio allows you to anticipate the profit or loss on that investment based on its historical performance.

Formula

Expected return = (return A x probability A) + (return B x probability B).

Since the bond holds that 68% of data lies within 1 standard deviation of the mean, the range will be +/- 1 standard deviation from the mean.

Expected return = (return A x probability A) + (return B x probability B)

Expected return = (6.3%-3.8%) to (6.3%+3.8%)

Expected return  = 2.5 percent to 10.1 percent

Hence, The range would be 2.5 percent to 10.1 percent.

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Assume that the risk-free interest rate in the United States is the same as that in Country M. Assume that the government of Country M is more likely to rescue local firms that experience financial problems. Other things being equal, Country M's firms are likely to use a ____ degree of financial leverage than U.S. firms. If a firm based in Country M has the same degree of financial leverage and the same operating characteristics as a U.S. firm, its cost of capital will likely be ____ than that of the U.S. firm.

Answers

Country M's firms are likely to use a higher degree of financial leverage than U.S. firms. The cost of capital will likely be lower than that of the U.S. firm.

What is financial leverage?

Financial leverage is known to be the use of borrowed money  that is a debt to handle or finance the buying of assets with the view that the income or capital gain or profit from the new asset will be more than the cost of borrowing.

Note that  Country M's firms are likely to use a higher degree of financial leverage than U.S. firms. The cost of capital will likely be lower than that of the U.S. firm.

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Fitz Inc., a pharmaceutical company, reported net income for fiscal 2016 of $5,772 million, retained earnings at the start of the year of $57,594 million and dividends of $5,958 million, and other transactions with shareholders that increased retained earnings during the year by $11 million. If there were no additional transactions during the year that affected retained earnings, what was the balance of retained earnings at the end of the year

Answers

The balance of retained earnings at the end of the year equals $57,408 million.

What is balance of retained earnings?

It is calculated as adding of beginning Retained Earnings balance to the net income or loss and then dividend payouts are subtracted.

Balance of retained earnings = $57,594 million + $5,772 million - $5,958 million,

Balance of retained earnings = $57,408 million

Therefore, the balance of retained earnings at the end of the year equals $57,408 million.

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When starting to produce podcasts, one of the greatest expenses you will have initially is for:
A. A microphone
B. An advertising budget
C. Increasing bandwidth
D. Video production

Answers

Answer:

b

Question

When starting to produce podcasts, one of the greatest expenses you will have initially is for:

A. A microphone

B. An advertising budget

C. Increasing bandwidth

D. Video production

The use of anthropological techniques to study businesses and what some people cal organizational culture in order to assist the business is most specifically an example of...

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The use of anthropological techniques to study businesses and what some people call organizational culture in order to assist the business is most specifically an example of Applied anthropology.

What is applied anthropology?

Simply described, applied anthropology is "anthropology in use". It refers to any anthropological research that is carried out to address relevant issues. This indicates that the project has stakeholders and clients who stand to benefit or lose.

There are countless challenges that anthropology can help with. Some examples are business, environmental issues, health and medicine, research, education, and many more.

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Ari is a generous employer who truly values his workers. He is constantly praising the work his employees do and finds many ways to show his appreciation. Needless to say, Ari's employees like him a lot. However, they don't trust him. Ari does not like making decisions and, therefore, often fails to take care of important problems. Moreover, Ari does not like conflict and will often let his employees get away with inappropriate behavior on the job. Ari would most likely be considered a ____________.

Answers

Ari does not like conflict and will often let his employees get away with inappropriate behavior on the job. Ari would most likely be considered a country club manager.

What is a country club manager's style?

A country club manager's leadership depicts a manager who scores low on productivity but high on concern for people.

Country club managers are attentive to the:

SecurityWell-beingHarmony of subordinates.

Thus, Ari does not like conflict and will often let his employees get away with inappropriate behavior on the job. Ari would most likely be considered a country club manager.

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the nurse is preparing written information for an older adult who is to manage intermittent self-catheterization. which strategy will be most effective?

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The strategy that will be most effective when  preparing written information for an older adult who is to manage intermittent self-catheterization is to use short words.

What is the reason why the nurse should use short words?

In this case where the nurse is preparing written information for an older adult , using of short words would make the patient to be able to understand the information.

In this case, the short word brings about simplicity which result into better understanding.

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If the project’s cost of capital were to increase, how would that affect the irr?.

Answers

There will be no changes in IRR, if the project’s cost of capital were to increase.

What is cost of capital?

This refers to the return that a firm needs to achieve in order to justify the cost of a capital project.

Most time, when this project’s cost of capital were to increase, it will not impact of the Internal Rate of Return.

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When there is a single point of failure, companies can correct the problem by having:

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When there is a single point of failure, companies can correct the problem by having: team members share their tasks when any member becomes overloaded.

What is team member?

Team member can be defined a group of people that comes together so as to achieve their tasks or set goals.

Based on the scenario what the company should do into to correct the problems is to ensures that team member shares their work when any member of the teams has overloaded tasks to complete.

Therefore the team members should  share their tasks.

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in which way does the concept of product life cycle (plc) help marketing managers?

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The concept of product life cycle (plc) help marketing managers to know when to roll out a product for sale and when to develop or produce more products.

What is product life cycle?

Product life cycle talks about the life span of a product.

It include how long a product can last before spoilage or before it becomes obsolete.

It helps managers to plan rebranding of a product and new production.

Therefore, The concept of product life cycle (plc) help marketing managers to know when to roll out a product for sale and when to develop or produce more and new products.

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Differentiation for most consumer brands can be based on.

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Features, performance, or style and design, is differentiation for most consumer brands can be based on.

What differentiate the product from other products?

Products can be differentiated from one product to another there are many features that apply to the product like the packaging, design, uses and specification, materials. They are also differentiated by the trademark and company.

Thus, Features, performance, or style and design.

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Ecosystem sustainability primarily results from the:

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Ecosystem sustainability primarily results from the: relationships between the organisms in an ecosystem.

What is ecosystem sustainability?

This is  a term that has to mean that the ecosystem that we have is well preserved in the long run. What this means is that the natural resources and the environment are well preserved.

Hence it has to do relationships that exist between the organism in the given environment.

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How quickly must you file a report with the michigan dnr if property damage exceeds $2,000?.

Answers

Answer: within five days or 10

Explanation:

a. what happens to the number of sandwiches and ice cream cones consumed if the price of ice cream cones rises to $2 a piece?

Answers

It is to be noted that the demand for sandwiches and ice cream cones consumed after the price of ice cream cones rises to $2 a piece will both reduce (all things being equal).

Why would the demand for both items reduce?

The demand for both goods will both come down because they are complementary or joint demand goods.

A pair of goods are termed "joint demand" when both must or usually is consumed with the other.

Recall that (where all things are equal) demand will decrease as price increases.

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Describe the 5 economic resource categories??

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Answer:

there are three categories of economic resources National resources human resources and capital goods

A credit balance in cash over and short is reported as a(n)

Answers

When there is a credit balance in the cash over and short account this is reported as Revenue.

What is the cash over and short account?

This is an expense account which shows the variance between cash balance than the company expects, and the actual cash balance that is seen.

A credit balance means that it is revenue because a debit balance would be an expense.

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What does the release of earnings announcements

Answers

The release of earnings announcements and economic indicators are similar because c) both are estimated in advance by analysts.

Why are earnings announcements analyzed?

Earnings announcements help determine the value of a company and so they are analysed to help people decide if they can invest and make a capital gain.

Economic indicators are also analyzed with the goal being to predict where the economy is going and what to do about it.

The full question and options are:

What does the release of earnings announcements have in common with the release of economic indicators?

a) Both are typically released on a quarterly basis.

b) both are typically published by corporations

c) both are estimated in advance by analysts

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A perfectly competitive apple farm produces 1,000 bushels of apples at a total cost of $36,000. The price of each bushel is $50. Calculate the firm's short-run profit or loss.

Answers

The firm's short run profit is $14,000.

What is the short run profit or loss?

Short run profit or loss can be determined by subtracting total revenue from total cost. Total revenue is total units sold multiplied by price per unit.

Short run profit = total revenue - total cost

Short run profit = (1000 x 50) - 36,000 = $14,000

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