Calculate the marginal tax-rate and average tax rate, Financial Accounting

Thomas Crown expects to earn the following stream of annual income for the next four years:- $41,000; $45,000; $38,000 and $50,000. Although he has adopted the ‘Pay Yourself Firstâ€TM scheme and has committed to save 10% of his after-tax income per year, he realizes that in some years he cannot as planned because he needs a minimum expenditure of $30,000 per year. His average tax-rate is 25% and his marginal tax-rate on interest income is 30%. He puts all his savings in a saving account that pays 2% interest. How much money will he have at the end of four years?

 

 

Posted Date: 3/29/2013 1:03:59 AM | Location : United States







Related Discussions:- Calculate the marginal tax-rate and average tax rate, Assignment Help, Ask Question on Calculate the marginal tax-rate and average tax rate, Get Answer, Expert's Help, Calculate the marginal tax-rate and average tax rate Discussions

Write discussion on Calculate the marginal tax-rate and average tax rate
Your posts are moderated
Related Questions
Calculate the present value and determine the npv, Financial Management. Assume today is 3 December 2009. Helen is 30 years old and has a Bachelor of Business. She is currently em

In additional information depreciation of two years is given. What is the treatment of it while preparing fixed assets account.


Q. What is Leveraged Lease? Leveraged Lease - Transaction under which LESSOR borrows funds to acquire property which is leased to a third party. Property and lease rentals are

Rules of intestacy:leaves several wives The intestate leaves several wives, married under any system of law which permits polygamy. His personal and household effects and the r

1. Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,218,246. have a

Q. Explain Final Location Survey? A final Location Survey is under taken on the completion of traffic survey to select the final rout of the line to be constructed, taking into

A lawn care company started business on January 1, 2012. The company billed clients $105,000 for lawn care services completed in 2012. By December 31, the company had received $84,

Investment Tax Credit - This is a component of general business credit and comprises the following: 1. Energy credit 2. Rehabilitation credit 3. Reforestation credit

Analyze one completed M&A transaction from recent times There are two main requirements (1) an analysis of the strategic and economic rationale behind the merger, and (2) an analy