How much additional in federal income taxes will he pay

Assignment Help Financial Management
Reference no: EM131317948

An individual is subject to federal MTR of 31% and a state MTR of 9%. He also pays a 7.65% FICA tax rate on labor earnings. He itemizes deductions, and deducts his state income taxes when calculating federal income taxes. Suppose the individual earns an additional $100.

a. How much additional in FICA taxes will he pay?

b. How much additional in state income taxes will he pay?

c. How much additional in federal income taxes will he pay?

d. What is his total MTR on labor earnings?

Reference no: EM131317948

Questions Cloud

Explain and discuss how leaders can change leadership styles : Explain and discuss how leaders can change leadership styles. In reference to the BHCo case, should the CEO (Carrie Worth) change her leadership style? Ensure you reference George (2015)
Consumer products division-should management make change : Suppose Carter Chemical Company's management conducts a study and concludes that if Carter expands its consumer products division (which is less risky than its primary business, industrial chemicals), the firm's beta will decline from 1.1 to 0.9. Sho..
Why do you think domestic terrorists exist in society : Why do you think domestic terrorists exist in society? Explain.Do you think various triggers drive them to extremism, or are they slowly conditioned throughout their lives? Explain.What reasons might domestic terrorists have for planning and executin..
Calculate lissa total dividends : a. Calculate Lissa's total dividends for 2014 if its dividend payment is set to force dividends to grow at the long-run growth rate in earnings. b. Calculate Lissa's total dividends for 2014 if it continues its 2013 dividend payout ratio.
How much additional in federal income taxes will he pay : An individual is subject to federal MTR of 31% and a state MTR of 9%. He also pays a 7.65% FICA tax rate on labor earnings. He itemizes deductions, and deducts his state income taxes when calculating federal income taxes. Suppose the individual earns..
Straight-line depreciation over : The cost of the manufacturing equipment is $7000, and the project life is estimated at 10 years. The firm will use straight-line depreciation over the 10-year life of the project. The firm's tax rate is 30% and the discount rate is 10%.
What would her tax liability be for the year : Mary has earnings of $50,000 this year from her job. In addition, the market value of the condominium she owns increased from $100,000 to $105,000. She has no other capital gains or earnings, and receives no transfers. If Mary was subject to a compre..
Define physical evidence : When the fight began, there were 20 or so patrons in the lounge. When EMTs and police arrived on the scene, only two of the patrons and the bartender remained. Michelle and Sam were gone. The EMTs attempted CPR, but Joe was already dead. Two patro..
Construct a depreciation schedule : An asset has a value of $1,500 and a useful life of 5 years. Its trade-in value is $300. Use the amortized method to construct a depreciation schedule assuming that the interest rate is 5%.

Reviews

Write a Review

Financial Management Questions & Answers

  Result in initial aftertax cash savings

Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.88 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. What is the maximum initial cost the co..

  Optimal sharpe ratio in a portfolio of the two assets

You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 9 percent and 14 percent, respectively. The standard deviations of the assets are 25 percent and 33 percent, respectively. The correlation bet..

  Considering project which will provide annual cash inflows

You are considering a project which will provide annual cash inflows of $4,500, $5,700, and $8,000 at the end of each year for the next three years, respectively. what is the net present value of these cash flows, given a 9 percent discount rate?

  How much is due at maturity

Andres Michael bought a new boat. He took out a loan for $24,420 at 2.75% interest for 4 years. He made a $4,850 partial payment at 4 months and another partial payment of $2,810 at 9 months. How much is due at maturity?

  Forward rate agreement to hedge the interest rate risk

IP Phone, Inc. plans to borrow $80,000,000 for 6 months, three months from now. (In other words, the firm will be getting a 6-month loan in December.) The interest rate on the loan will be LIBOR + 0.75%, but the company is concerned about potential c..

  Common stock-what is the market-to-book ratio

The common stock of The Burger Hut is selling for $16.25 a share. The company has earnings per share of $0.42 and a book value per share of $9.28. What is the market-to-book ratio?

  What is the estimated cost of common equity to the firm

(Cost of common equity) The common stock for the Hetterbrand Corporation sells for $59.17, and the last dividend paid was $2.24. Five years ago the firm paid $1.84 per share, and dividends are expected to grow at the same annual rate in the figure as..

  Required return-what is the value of the stock

Could I Industries just paid a dividend of $1.30 per share. The dividends are expected to grow at a 15 percent rate for the next 5 years and then level off to a 6 percent growth rate indefinitely. If the required return is 12 percent, what is the val..

  To calculate the total asset turnover

To calculate the total asset turnover, the following financial statements are needed:

  Absolute purchasing power parity exists

The camera you want to buy costs $365 in the U.S. If absolute purchasing power parity exists, the identical camera will cost _____ in Canada if the exchange rate is C$1 = $0.7527. C$274.74 C$486.25 C$484.92 C$363.67 C$483.59 The current spot rate is ..

  Stream of cash flow to be received at the end

What is the present value of the following stream of cash flow to be received at the end of each year assuming a discount rate of 20%? What is the future value at the end of year 3 assuming an annual interest rate of 20%?

  What rate of return must he earn

Mr. Fish wants to build a house in 8 years. He estimates that the total cost will be $150,000. If he can put aside $11,000 at the end of each year, what rate of return must he earn in order to have the amount needed?

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