Considering taking early retirement offered by her employer

Assignment Help Financial Accounting
Reference no: EM131287866

Provide Bertha with information she will need to make her decision.

Bertha is considering taking an early retirement offered by her employer. She would receive $3,000 per month, indexed for inflation. However, she would no longer be able to use the company’s health facilities, and she would be required to pay her hospitalization insurance premiums of $8,000 each year. Bertha and her husband will file a joint return and take the standard deduction. She currently receives a salary of $55,000 a year. If she retires, she will spend approximately $300 less each month for commuting and clothing.

Bertha and her husband have other sources of income and are in and will remain in the 25% marginal tax bracket. Her income tax for the current year was $8,875. She currently pays Social Security and Medicare taxes of 7.65% on her salary, but her retirement pay would not be subject to this tax. According to Bertha, she and her husband could live well if her after-tax retirement income was at least 50% of her current income. Provide Bertha with information she will need to make her decision.

Reference no: EM131287866

Questions Cloud

Keep extensive records about employees : Some managers and organizations go to great lengths to monitor their employees' behavior, and they keep extensive records about employees' behavior and performance.
How you might utilize crisis or risk communication : Explain at least one potential consequence of not utilizing crisis and risk communications in your public health campaign.
What are the sounds and smells : How is the theater experience different from home viewing?Do you prefer the theater experience or home experience? Why or why not?
Describe qualities that are important to the leaders success : Describe qualities that are important to the leader's success. Provide examples of how some leaders with similar traits are successful in very different fields, as well as how equally successful leaders may not share all the same traits.
Considering taking early retirement offered by her employer : Bertha is considering taking an early retirement offered by her employer. She would receive $3,000 per month, indexed for inflation. However, she would no longer be able to use the company’s health facilities, and she would be required to pay her hos..
Propose a plan to incentivize a change initiative : For this discussion, you should create a 400 word response where you propose a plan to incentivize a change initiative within your current organization (or one with which you are familiar).
Prepare a note amortization schedule for the first year : Indigo Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Indigo offered a low downpayment and low car payments for the first year after purchase. It believes that this promot..
List the pros and cons of the contract clause : Perform research on the internet, your textbook, a contract at work, or a home contract for a product. In addition, list the pros and cons of the contract clause, why you believe it is necessary, etc.
Sale of machinery and warranty expense incurred : Kingbird Company sells a machine for $6,750 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. With sales being made evenly throughout the year, the..

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Compute kimms total standard cost per unit

Kimm Company has gathered the information shown below about its product. Direct materials. Each unit of product contains 3.10 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 0.70 pounds. Compute Kimm’s..

  Indifferent between modifying the product and not modifying

X Company is considering a modification to one of its main products next year that would make it more attractive to customers. As a result, X Company could increase the selling price by $2.02. However, fixed costs would increase to $16,110. At what u..

  Compute the cost to produce one helmet

Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns.- Compute the cost to produce one helmet.

  Common stock account as a result of this acquisition

Carnes has the following account balances as of May 1, 2012 before an acquisition transaction takes place. Picture INVENTORY 100,000 LAND 400,000 BUILDINGS(NET) 500,000 COMMON STOCK (10$ PAR) 600,000 ADDITIONAL PAID-IN CAPITAL 200,000 RETAINED EARNIN..

  Compute profit margin asset turnover and return on assets

Compute the (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equity. (Round to one decimal place.)

  What was their taxable income last year

Acme Universal is a micro-cap that had a $3,000,000 drop in taxable income this year. Their drop in taxes was $1,030,000. For each of the following, determine the largest amount that meets the conditions given above.

  Allocate costs incurred by solaris to appropriate columns

Without the buildings and improvements, the tract of land is valued at $1,890,000. Solaris also incurs the following additional costs: Allocate the costs incurred by Solaris to the appropriate columns and total each column.

  Show what information captain peachfuzz

Show what information Captain Peachfuzz may provide to the auditor about Baddenoff possible claim against Natasha. (Assume that the amount involved is material to Natasha.)

  What are the revenues and the cost per cilent

For the month of July, UP Payroll Services worked 1,600 hours for Dune Motors, 480 hours for Jake’s Charters, and 800 hours for Mission Hospital. UP bills clients at $119 an hour; its labor costs are $49 an hour. A total of 3,200 hours were worked in..

  How do governments manage working capital needs

In many cases, property taxes comprise a significant source of revenue and cash receipts for a government. If property tax cash collections typically occur during one or two collection periods, how do governments manage working capital needs?

  Hernandez company rents out a portion of its building

Hernandez Company rents out a portion of its building to Crider Company for $1,000 per month.

  Prepare all journal entries for sally inc

Evaluate what type of lease this would be for the lessee and compute the initial obligation and prepare all journal entries for Sally, Inc. for 2012. suppose a calendar year fiscal year.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd