Business, 06.06.2020 19:02 tzartiger12

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $85,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $85,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 7 percent on her investments. When should she pay the $20,000 bill—this year or next?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 03:10, samantha636

On the first day of the fiscal year, a company issues an $7,500,000, 8%, five-year bond that pays semiannual interest of $300,000 ($7,500,000 × 8% × ½), receiving cash of $7,740,000. journalize the first interest payment and the amortization of the related bond premium. round to the nearest dollar. if an amount box does not require an entry, leave it blank.

Answers: 3

continue

Business, 22.06.2019 10:30, drejones338p04p2p

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.

Answers: 1

continue

Business, 22.06.2019 14:40, ZoomZoom44

You are purchasing a bond that currently sold for $985.63. it has the time-to-maturity of 10 years and a coupon rate of 6%, paid semi-annually. the bond can be called for $1,020 in 3 years. what is the yield to maturity of this bond?

Answers: 2

continue

Business, 22.06.2019 19:00, michael1498

It is estimated that over 100,000 students will apply to the top 30 m. b.a. programs in the united states this year. a. using the concept of net present value and opportunity cost, when is it rational for an individual to pursue an m. b.a. degree. b. what would you expect to happen to the number of applicants if the starting salaries of managers with m. b.a. degrees remained constant but salaries of managers without such degrees decreased by 20 percent

Answers: 3

continue

You know the right answer?

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In...