Answer:
The answer is a. 14.33.
Explanation:
We apply the net present value (NPV) methodology to approach the two options.
+ The lifetime subscription's npv = $(850)
+ The annual subscription's npv = - 85 - [ 85/6% * [ 1 - 1.06^(-n) ], with n is the number of years the subscriber still lives.
To make a lifetime subscription a better buy, the NPV of this option should be higher than the NPV of annual subscription or:
85 + [ 85/6% * [ 1 - 1.06^(-n) ] > 850 <=> 1 - 1.06^(-n) > 0.54 <=> 1.06^(-n) < 0.46 <=> -n < -13.33 <=> n > 13.33.
So, the subscriber should live more than 14.33 years ( 13.33 + 1 years for another next year subscription) to make the lifetime subscription a better choice.
So, a is the correct choice.
Answer:
Credit to Cash for $4,995 is correct
Explanation:
here is a complete question
has a gross salary for May of $7,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 21%. Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a FICA-OASDI Tax of 6.2 % and FICA-Medicare Tax of 1.45%. Round the final answer to the nearest dollar.) A. debit to Cash for $4,995 B. debit to FICA Tax Payable of $4,995 O C. debit to Employee Income Tax Payable of $4,995 D. credit to Cash for $4,995
The computation of the amount that becomes the part for accrual the employer payroll taxes is shown below:
Gross Pay $7,000
Less: Deductions
Federal Income tax $1,470 ($7000 × 21%)
FICA-OASDI tax $434 ($7000 × 6.2%)
FICA-Medicare tax $102 ($7,000 × 1.45%)
Total Deductions 2006
Net pay $4,995
Answer:
The answer is letter A.
Explanation:
The true statement is Annual data on the distribution of income will indicate that the degree of income inequality in the two cities is identical.
Answer:
Under the accrual basis, it should recognize $1,000,000 as property tax revenue for the year 2019. The remaining $45,000 that it does not collect in year 2019 will be accounted for as Property Tax Receivable while the $5,000 will be recorded as Uncollectible Expense in 2019.
Explanation:
The accrual concept or basis of accounting requires that all revenues and expenses relating to a fiscal year be recognized in that accounting year. It is not only the actual cash receipts and payments that should be recognized. This means that any revenue that is due but not yet received will be accounted for in the year that the revenue arises. And all the related expenses for raising the revenue will also be accounted for in the same year.
Answer:
![\left[\begin{array}{ccccc}$Concept&$Base&6,000&7,500&10,000\\$Sales&6.25&37,500&46,875&62,500\\$Variable&-1.55&-9,300&-11,625&-15,500\\$Fixed&12,000&-12,000&-12,000&-12,000\\$Income&&16,200&23,250&35,000\\$Average per pizza&&2.7&3.1&3.5\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%24Concept%26%24Base%266%2C000%267%2C500%2610%2C000%5C%5C%24Sales%266.25%2637%2C500%2646%2C875%2662%2C500%5C%5C%24Variable%26-1.55%26-9%2C300%26-11%2C625%26-15%2C500%5C%5C%24Fixed%2612%2C000%26-12%2C000%26-12%2C000%26-12%2C000%5C%5C%24Income%26%2616%2C200%2623%2C250%2635%2C000%5C%5C%24Average%20per%20pizza%26%262.7%263.1%263.5%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Explanation:
Question elaborate budget for the range of 6,000 // 7,500 and 10,000 units considering the selling price per Pizza is 6.25 dollars.
a) we multiply the sales per unit by each volume sales
b) sale idea but with the variable cost
c) we also subtract the fied cost.
d) This give us the income on each volume.
Finally we also divide by the numbers of unit to determinate the gain per pizza.
