Chapter 6

Problem 1: Solution 1. valueable IncomeTax Rate $0 - $20,00010% $20,000 - $50,000$2,000 + 20% of the amount everyplace $20,000 > $50,000$8,000 + 30% of the amount over $50,000 set-back $20,000 × .10 = $ 2,000 Next$30,000 × .20 = $ 6,000 Next$10,000 × .30 = $ 3,000 Total$60,000 $11,000 = Total Tax indebtedness 2.Federal Income Taxes / Taxable Income = Average Tax Rate = $11,000 / $60,000 = 18.33% Problem 2: Solution The luck terms of building a modernistic lodgement facility on this land is the best departed opportunity of selling the land today for $500,000 net of appraise. hard currency Flow merchandising price$500,000 $500,000 salute 100,000 Gain on sale 400,000 Incr. tax rate 0.3 -120,000 Net cash meld $380,000 Problem 3: Solution 1.The account expenses of the rooms plane section sum up $21,450. These expenses accept the paysheet and related expenses of $20,000 and other expenses of $1, 450. 2.Overhead expenses total $77,356. These expenses include both expense other than the direct expenses of the avail centers. Therefore, the overhead expenses include the undistributed operating expenses, fixed charges, and income taxes. 3.

cost governable by the GM and by those under his/her care include both expenses prior to gross operating profit. Thus, the undistributed operating expenses and direct be of the profit centers are the controllable expenses. 4.The fixed costs are the fixed charges of rent, property taxes, insurance, interest, and depreciation. different expenses also whitethorn be fixed, but further probe would be required. 5.The! cost of sales is considered to be a varying expense. Problem 4: Solution 1. Electric ExpenseOccupancy % High month (August)$7,200 78% Low Month (December)$5,500 50% $1,700 28% combine monetary value Difference / Occupancy % Difference = Variable Cost per 1% of Occupancy = $1,700 / 28% = $60.71 2. December Occupancy % ×...If you indispensability to get a full essay, order it on our website: OrderCustomPaper.com

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