Suppose a firm faces a current tax rate of 35 but expects

Assignment Help Accounting Basics

Reference no: EM13582088

Suppose a firm faces a current tax rate of 35% but expects this rate to fall to 20% in the future. Employees on average face a current marginal tax rate of 31% but expects this rate to fall to 20% when they retire in 15 years. The firm can earn 12% pretax on its pension investments and 10% after tax on corporate account. Employees on average can earn 10% after tax on their investments. Which among salar, pension, and deferred compensation is tax preferred? Explain your results.

Reference no: EM13582088

Questions Cloud

Compute the following variances for raw materials direct : thompson company uses a standard cost system for its single product. the following data are availableactual experience

Build a simple linear regression model relating company : the data gives the monthly sales for a cosmetic manufacturer yt and the corresponding monthly sales for the entire

Checking account balance at bank 61000 money market balance : for each individual situation determine the amount that should be reported as cash. if the items is not reported as

What is meant by the term correlation and why are fossils : 1. distinguish between numeric and relative dating.2. if sedimentary layers beds are steeply inclined in an exposure

Suppose a firm faces a current tax rate of 35 but expects : suppose a firm faces a current tax rate of 35 but expects this rate to fall to 20 in the future. employees on average

When an individual pays for business expenses he or she : when an individual pays for business expenses he or she needs to be careful not to mix the personal with the business.

Should a corporation be in a position to liquidate detail : should a corporation be in a position to liquidate detail the order of payment to debt and equity holders. consider

Barney an individual and aldrin inc a domestic c : barney an individual and aldrin inc. a domestic c corporation have decided to form ba llc. the new llc will produce a

If the materials quantity variance was 3036 unfavorable : kansas company uses a standard cost accounting system. in 2014 the company produced 28200 units. each unit took several

User Account

All Pages