The goal of this exercise is to demonstrate your understanding of the characteristics that influence the choice of business ownership formation.
RT Taxes: After years of preparing taxes for his extended family, Ronald began a tax consultant business from his home office. He hires assistants as needed but does all of the management and main services himself.
Pet Perfect: John with an expertise in sales, and Francine, with an expertise in management, opened a pet shop together, sharing profits and responsibilities equally.
I Scream Inc: A group of friends began an ice cream factory. Because there was a certain amount of risk in whether it would succeed, the friends didn't want to lose their homes over it-plus they wanted to help those with startup costs to have a share of the profits.
Joypass Inc: Samantha, Fabian, and Jonah had a brilliant idea for an online game portal. As a startup, they wanted to retain earnings to survive the initial years, have limited liability should it not succeed, and appear credible when doing business with others.
Drs. O'Reilly: Dr. John O'Reilly and Dr. Sharon O'Reilly decided to open up a practice together after many years working at the hospital. They wanted protection for their personal assets in case of malpractice but wanted to avoid the complexity of traditional incorporating.
Individual Tax Rate: The owner of this organization pays income taxes at an, "individual rate," normally lower than a corporate rate. He or she benefits from tax-exempt accounts for retirement and profit sharing.
No Corporate tax: The owners of this organization pay income taxes on the profits of an individual basis, but the organization does not pay the taxes directly.
Double taxation: Since this organization's profits are taxed at the corporate level and again at the individual level when the dividends are distributed to shareholders, this income is actually taxed twice.
Owners taxed at individual rate: This organization is taxed like a partnership, with owners paying taxes at the individual rate.
Taxed like a partnership: Owners are often called members and pay taxes on income as an individual.
Select from the list below the most appropriate type of business ownership for each company and taxation type listed above. Note that one taxation type is appropriate to two different types of business ownership.
-Sole proprietorship
- Partnership
-Corporation
-S Corporation
-LLC
In: Operations Management
Question 1
Karen and Maggie plan to buy investment plans launched by ABC
Insurance Company for purchasing flat after five years. Karen is
interested in “25% Bonus Plan”, a 5 year saving insurance policy,
which insurance company provides guaranteed bonus amounting 25% of
contributions made by policyholder during the policy period and the
bonus will be paid at the end of policy period. Meanwhile, Maggie
would like to make lump sum investment of $400,000 today in “Future
Tech Star Fund”, the US technology stock fund that focusing on
identifying companies with high potential earnings growth such as
Tesla, Apple, Nvidia and Microsoft. She has no intention to
withdraw any cash during the investment period.
The expected contributions made by Karen at the end of each year
and expected annual returns of “Future Tech Star Fund” in coming
five years are shown as below:
| Expected contributions made by Karen |
Expected annual returns of Future Tech Star Fund |
|
| Year 1 | $50,000 | 26.8% |
| Year 2 | $60,000 | 13.4% |
| Year 3 | $100,000 | -10.3% |
| Year 4 | $75,000 | 5.3% |
| Year 5 | ---- | 8.9% |
a) State formula to calculate annual return earned by Karen.
b) Identify and explain with calculations whether “25% Bonus Plan” or “Future Tech Star Fund” earns higher annual return in this case. You can use Excel to help you calculate return of “25% Bonus Plan” if necessary.
c) Maggie is considering invest “QQQ”, an ETF listed in the US tracking the performance of NASDAQ 100 Index (including large cap technology stocks listed in the US). Explain the trade offs between investing in “QQQ” and “Future Tech Star Fund”.
d) Peter is considering invest “Future Tech Star Fund” with the same initial investment amount. On the other hand, he plans to contribute more at the beginning of Year 3 and reduce the investment amount at the beginning of Year 5. Explain whether he can earn better return compared with Maggie. No calculations are allowed.
In: Accounting
In: Finance
Entry-level workers for a major corporation earn less than their managers who also earn less than the executive vice presidents at the same corporation. This is an example of
Group of answer choices
wage-level decision.
an incentive wage.
an individual wage decision.
wage discrimination.
a wage-structure decision.
In: Economics
1. Explain how you would use the Security Market Line (SML) to discern the breadth of a portfolio’s individual stock winners vs. losers.
2. Explain how the link between price (P) and intrinsic value (V) are viewed by proponents of the Efficient Market Hypothesis and by those who are not proponents.
In: Finance
1. Why do these patient populations are at risk of developing bacterial pneumonia?
2. Describe the pathophysiology of bacterial pneumonia that leads to hypoxemia?
In: Nursing
what does the pupillary reflex tell you about the afferent nerve pathway?
Which division of the ANS causes the pupils to constrict? Which division of the ANS causes the pupils to dilate?
If you shine light into the eyes of an individual who has suffered a blow to the head, what could happen and why?
In: Anatomy and Physiology
Indicate whether the following information is included on the 2020 1040 tax return as Gross Income or excluded from the 2020 1040 tax return. Indicate the specific amount included or excluded.
Item | $ Included as Gross Income | $ Excluded from Gross Income |
Earned $45,000 of gross wages from an employer. | ||
Received a gift from a grandparent of $10,000 cash. | ||
Received a $5,000 signing bonus from an employer. | ||
Received child support in the amount of $12,000. | ||
Employer-paid health insurance premiums amounted to $15,000 for an employee. | ||
Employee chose a $10,000 per year cash option from a cafeteria plan offered by the employer. | ||
Received $1,800 of interest in municipal bonds from the State of Louisiana. | ||
Received $500 in qualified dividends from mutual fund holdings. | ||
Received a directed sum of $3,000 from a parent’s business customer. The money was earned by the parent but the customer paid the student directly to help pay for college. The money was no longer owed to the parent. What, if any, goes on the receiver’s return? | ||
Received $120,000 of life insurance proceeds installments during the year. The face value of the policy was $115,000. | ||
Received a watch from an employer for 10 years of service at a banquet. The watch cost $350. | ||
Received a lump sum payment of $300,000 for an injury occurring because of a car accident. Compensatory and medical damages paid amounted to $140,000. The difference was considered punitive. | ||
Received a $1,000 per month housing allowance for managing an apartment building. The manager who received the allowance worked on the premises of the building during the day but lived and spent nights at his parents’ house. Manager was not required to live on the premises of the apartment building. |
In: Finance
The following unadjusted trial balance was extracted from the books of Carol’s Trading Company at December 31, 2017, the end of the company’s fiscal year. The company is owned by Carol Williams who trades in the business of buying and selling household consumables.
Carol’s Trading Company
Trial Balance as at December 31, 2017
|
A/C Name |
DR $ |
CR $ |
|
Cash |
250,000 |
|
|
Accounts Receivable |
340,000 |
|
|
Allowance for Bad Debts |
25,000 |
|
|
Merchandise Inventory |
210,000 |
|
|
Store Supplies |
120,000 |
|
|
Prepaid Insurance |
156,000 |
|
|
Office Furniture |
1,200,000 |
|
|
Accumulated Depreciation –Office Furniture |
360,000 |
|
|
Computer Equipment |
600,000 |
|
|
Accumulated Depreciation –Computer Equipment |
||
|
Accounts Payable |
345,000 |
|
|
Wages Payable |
||
|
Interest Payable |
||
|
Notes Payable, Long Term |
210,000 |
|
|
Unearned Sales Revenue |
265,000 |
|
|
Carol Williams, Capital |
855,200 |
|
|
Carol Williams, Withdrawal |
190,000 |
|
|
Sales Revenue Earned |
2,100,000 |
|
|
Sales Discount |
15,000 |
|
|
Sales Return and Allowances |
27,000 |
|
|
Cost of Goods Sold |
490,000 |
|
|
Wages Expense |
137,000 |
|
|
Insurance Expense |
78,000 |
|
|
Depreciation Expense –Office Furniture |
||
|
Depreciation Expense –Computer Equipment |
||
|
Store Supplies Expense |
||
|
Utilities Expense |
119,000 |
|
|
Bad Debt Expense |
||
|
Rent Expense |
205,000 |
|
|
Interest Expense |
23,200 |
__________ |
|
Total |
4,160,200 |
4,160,200 |
The following additional information was made available at December 31, 2017:
Store supplies on hand at December 31, 2017 amounted to $42,000.
Insurance of $156,000 was paid on June 1, 2017 for the period June 2017 to March 2018.
The office furniture has an estimated life of ten (10) years and is being depreciated on the straight-line method of depreciation, down to a residual value of $0.
The computer equipment was acquired on April 1, 2017 and is being depreciated over five (5) years on the double-declining method of deprecation, down to a residue of $54,432.
Wages earned by the company’s employees and not paid at December 31, 2017 amounted to $33,500.
Accrued interest expense amounted to $2,850 at December 31, 2017.
A physical count of inventory at December 31, 2017, reveals $280,300 worth of inventory on hand.
At December 31, 2017, $195,000 of the previously unearned sales revenue had been earned.
The aging of the accounts receivable schedule at December 31, 2017 indicated that the estimated uncollectible on accounts receivable is $34,000.
Other data:
$110,000 of the notes payable is due for payment on April 31, 2018
Required:
Prepare the necessary adjusting entries on December 31, 2017.
Prepare the company’s multiple-step income statement for the year ended December 31, 2017.
Prepare the company’s statement of owner’s equity for the year ended December 31, 2017.
Prepare the company’s classified balance sheet at December 31, 2017.
In: Accounting
1.An analysis that includes all subjects who were randomized to the treatment and comparison groups, regardless of whether they received or completed their assigned study protocol
2.What is the primary objective of any case-control or cohort study?
3Which study design is most appropriate to study multiple outcomes from a single exposure?
4.A case-control study is most efficient design for studying the health effects of rare exposures.
5.The ecological fallacy states that associations seen on the group level will not necessarily be present on the individual level.
6.A major advantage of a randomized clinical trial is that it rules out self-selection of patients to the different treatment groups
7.An experimental study was conducted among adults with Type 2 diabetes in order to determine if a new medication was more effective in reducing blood glucose levels than the currently used medication. What type of experimental study is this?
8.Which of the following techniques used in experimental studies can be directly applied in cohort studies (choose all that apply)?
9A study was done to determine whether the amount of money spent on soft drinks was related to mortality from diabetes. The investigators collected data on per capita (average per person) soft drink consumption in ten US states and examined its relationship to mortality rates from diabetes in those ten states. In order to calculate per capita sales they gathered annual data on soft drink sales from commerce records and then divided these figures by the state’s population from the most recent census. The mortality data were gathered from the vital records department in each state. What type of study is this?
10.What sources can be used to identify controls for a case-control study?
11.When is it desirable to use a case-control study (choose all that apply)?
12.What is the purpose of the control group in a case-control study?
In: Statistics and Probability