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
GROUP STRUCTURES A group structure is the relationship between the holding company and its subsidiaries.  There are normally four main types of group structures (apart from the

#The ABC Organization Unadjusted Trial Balance As of 31 December 2012 Account Codes Dr Cr Cash 10,789 Furniture and fixtures 60,000 Supplies inventory 8,531 Pledged contributions r

Suppose that the risk-free rate is 7% and that the market risk premium is 7%. What is the needed rate of return on a stock with a beta of 1.2? What is the needed rate of retu

FSN Analysis: In this method inventory items are classified as per the usage/consumption pattern. They are categorizing as: Fast Moving (F) items are stored in huge quant

Which of the following is NOT an example of an agency cost? A. Paying an accounting firm to audit your financial statements. B. Paying an insurance company to assure that b

A Company policy calls for keeping safety-stock equal to 25% the forecasted demand for that month.  The company currently has a work force of 12 people.  It takes a worker 3 hours

what managers should know about internal rate of return (IRR) and why?

Camp Corp had the following balances in its stockholders'' equity at jan 1: Common stock, $2, par value, 450,000 shares issued $900,000 Additional pd in capial 1,200,000 Retained

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,

Many hospitals are classified as not-for-profit (NFP). The presentation of for-profit (FP) financial statements differs in several respects from NFP accounting. You will probably w