Country A follows a 20% tax rate structure on earned income across the board (Proportional). In country B, the taxation policy is progressive. The tax rate is 10% on the first $40K of income earned and then 40% on income in excess of $40K.

Calculate the total tax bill for both low ($40,000) and high income ($100,000) individuals in both countries. You MUST show your calculations.

Assuming all other decision-making factors are the same (i.e. climate, culture, language, etc.), are there any immigration incentives for the 40K or 100K wage earners? If so, how and why? Please explain.

In 2018, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average earnings in 2018 were about $27 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $100 or more per hour.

Instructions: In part a, round your answers to 2 decimal places. For all other parts, enter your answers as a whole number unless otherwise indicated.

a. If we assume that wage differences are caused solely by differences in productivity, how many times more productive was the average worker than a worker being paid the federal minimum wage?

How many times more productive was a $100-per-hour lawyer compared to a worker earning minimum wage?

b. Assume that there are 20 minimum-wage workers in the economy for each $100-per-hour lawyer. Also assume that both lawyers and minimum-wage workers work the same number of hours per week. If everyone works 40 hours per week, how much does a $100-per-hour lawyer earn in a week?

How much does a minimum-wage worker earn a week?

c. Suppose that the government pairs each $100-per-hour lawyer with 20 nearby minimum-wage workers. If the government taxes 25 percent of each lawyer’s income each week and distributes it equally among the 20 minimum-wage workers with whom each lawyer is paired, how much more will each of those minimum-wage workers receive each week?

If we divide by the number of hours worked each week, how much does each minimum-wage worker’s weekly transfer amount to on an hourly basis? Instructions: Round your answer to 2 decimal places.

d. Suppose the government taxes each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers with whom each lawyer is paired. How much per week will each minimum-wage worker receive?

How much is that on an hourly basis?

Crystal Corporation earned net income of $750,000 in 2016. It has a complex capital structure as follows: 10,000 shares outstanding of 10%, $100 preferred stock, and 150,000 shares issued of $5 common stock. There is also 20,000 common stock in the treasury. The preferred stock can be converted into 25,000 shares of common. In addition Crystal has Bonds Payable of $250,000 that pay interest of 8% and can be converted into 10,000 shares of common stock. The applicable federal income tax rate is 40%.

Calculate the basic earnings per share for 2016.

Calculate the diluted earnings per share for 2016.

Sally, age 66, single, earned income of $42,000 in 2020 and had $2,000 of deductions for adjusted gross income and itemized deductions of $4,000. Sally is legally blind for tax purposes. Sally is also eligible for a tax credit of $1,000. What is Sally's taxable income if she wishes to minimize her tax?

Question options: $26,300

$20,300

$21,300

$24,300

None of the above choices are correct.

Actual Cost, planned value and earned value of the activities of an ongoing project after 5 months and after 8 months are given below. All values and costs are in Rs lakhs. Comment on status of the

a) Activities (Activity delayed/early, activity cost overrun/underrun)

b) status of project and estimated total cost at completion at 5 months and at 8 months.

After 5 months   

Activity. EV PV AC Comment   

A 10 10 8   

B 18 15 12

C 15. 20 25

D 40 30. 35

E 25 25. 25

F 25 20 15

G 10 15 10

After 8 months

Activity EV PV AC Comment  

A 20 40 45

B 25 25 20

C 15 30 25

D 70 60 40

E 70 70 80

F 40 40 40

G 30 40 20

Find the interest rates earned on each of the following. Round each answer to two decimal places. You borrow $750 and promise to pay back $795 at the end of 1 year. % You lend $750 and the borrower promises to pay you $795 at the end of 1 year. % You borrow $71,000 and promise to pay back $467,185 at the end of 12 years. % You borrow $14,000 and promise to make payments of $3,693.20 at the end of each year for 5 years.

Which of the following statements is INCORRECT?

Select one:

a. Earned Capital consists of Retained Earnings and Accumulated Other Comprehensive Income.

b. Shares of Treasury Stock cannot be reissued in the stock market.

c. Treasury Stock is comprised of shares that the firm repurchases in the stock market.

d. Unrealized increases and decreases in value on securities held as investments (AFS investments) are included in Accumulated Other Comprehensive Income.

What is the name of a security that has optional annual payments of a fixed amount, does not have to be paid back to the investor, and is second-to-the-last to receive assets from the firm in the case of bankruptcy?

Select one:

a. Mandatorily Redeemable Preferred Stock

b. Preferred Stock

c. Bond

Which of the following statements is INCORRECT?

Select one:

a. Preferred Stocks generally do not have voting rights.

b. The number of outstanding shares is always larger than the number of authorized shares.

c. “Additional Paid in Capital – Common Stock” is the value of common stock issued in excess of the par value.

d. The shareholder’s equity is composed of Contributed Capital, Earned Capital, and Treasury Stock.

d. Convertible Subordinated Debenture

Which of the following journal entries is INCORRECT for the described transaction?

Select one:

a. Buyback 1,000 shares of common stock (par value of $1 and original issue price of $50) at $55 and retire these shares.

b. Declare Large Stock Dividend (>25%) of 20,000 shares with market price of $50 and Par of $1.

c. Issued 10,0000 common stocks with a par value of $1 for $10 a share.

d. Declare Small Stock Dividend (< 25%) of 1,000 shares with market price of $50 and Par of $1.