Antonella in today tax dollars

Reference no: EM13127977

Antonella works for a company that pays a year-end bonus in December of each year. Assume that Antonella expects to receive a $20,000 bonus in December this year, her tax rate is 30%, and her after-tax rate of return is 8%. If Antonella's employer paid her bonus on January 1 of next year instead of December, how much would this action save Antonella in today's tax dollars? If Antonella's tax rate increased to 32% next year, would receiving the bonus in January still be advantageous?

Reference no: EM13127977

Questions Cloud

Evaluation of profitability of proposed project : Identifying the errors made by Linton in their project appraisal and calculating the weighted average cost of capital for Everest.

Explain about floor and ceiling effects : What about floor and ceiling effects? How can these issues preclude a significant correlation coefficient from being discovered?

What is material from the point of view of a bank : Materiality is a function of the time, the situation, and the people involved. What is material from the point of view of a bank that lends money to the firm?

What is the new water level in the cylinder : A graduated cylinder contains 129 mL of water. A 17.0 g piece of iron (density = 7.86 rm{g/cm^3}) and a 17.0 g piece of lead are added. What is the new water level in the cylinder?

Antonella in today tax dollars : how much would this action save Antonella in today's tax dollars? If Antonella's tax rate increased to 32% next year, would receiving the bonus in January still be advantageous?

Means of derivatives : If the minute hand and the hour hand on the clock both start at 12:00 when will the two hands first coincide? How many times will they coincide in 12 hours?

Explain analysis and type of sampling in study : What type of sampling was this study? What is your analysis of this approach? What are the advantages and disadvantages of this approach.

Calculate the equivalent units of production for october : Calculate the equivalent units of production for October, assuming that the company uses the weighted-average method of accounting for units and costs.

What approach should john take in examining two computers : Julia Katchum is in charge of the Eastern Regional Counterterrorism Computer Forensics Unit. Her recent investigations led her to believe that an imminent threat of a terrorist act in the Chicago area exists.

User Account

All Pages