Reference no: EM13817121
1. Salem Corporation is considering implementing a 401k program for its employees. The program plan will include the company matching at 50% of the employee's contribution up to 6% contribution. The Human Resources manager proposing this plan feels it will reduce turnover, improve morale, and provide a competitive edge when recruiting new employees. The HR manager has estimated Salem's annual contribution to be $300,000 and the savings to be $70,000 in employee turnover costs and improved performance. Management is concerned about this additional cost.
In addition, you should discuss the 401k limits and special treatment for highly compensated employees. Prepare a response (750-1,000) words documenting how, as a tax analyst, you see this program, and note any tax implications related to the program.
2. Prepare a 500-750 word written response to the following:
In January 2010, Salem Corporation, purchased $350,000 of new MACRS 5-year property in the US. This equipment was placed in service May 1, 2010. Salem wants to take as much depreciation in 2010 as possible. Calculate the depreciation for 2010. If Salem had been located in a qualified enterprise zone, what would be the depreciation amount? Explain the depreciation method you used.
In addition, include the tax benefits (savings) for the first year and the present value of the total tax benefits for the entire 5-year period. Discuss how the tax benefits and present value would change if a different method of depreciation was used. Also, discuss when Salem would not choose to take as much depreciation as possible.
|
What is the one-year-forward price of the pound
: If the spot price of the British pound is $2.20, the risk-free rate on 1-year government bonds is 3% in the US and 6% in the UK, What is the one-year-forward price of the pound?
|
|
Which threat to internal validity must she consider
: Susan has twelve subjects drop out of her study. Which threat to internal validity must she consider
|
|
Differences among the theories of goal setting
: Compare and contrast the significant similarities and differences among the theories of goal setting, self-efficacy, and reinforcement. Specify the theory that you believe most closely aligns with your current or future approach to motivating empl..
|
|
Respond with active policy response to stabilize inflation
: The economy is hit with a positive SRAS shock and you, in your role as a central banker, respond with an active policy response to stabilize inflation. (a) Draw an AS/AD diagram illustrating the changes in output and inflation. (b) Describe briefly h..
|
|
Different method of depreciation
: In addition, include the tax benefits (savings) for the first year and the present value of the total tax benefits for the entire 5-year period.
|
|
How that factor can affect the health of a population
: Identify the factors that affect toxicity in a population. Pick three of the factors and provide a brief discussion on how that factor can affect the health of a population.
|
|
Response to stabilize inflation-monetary-policy action
: The economy is hit with a positive LRAS shock and you, in your role as a central banker, respond with an active policy response to stabilize inflation. (a) Draw an AS/AD diagram illustrating the changes in output and inflation. (b) Describe briefly h..
|
|
Direct and indirect presentation of cash flows
: Write a 350-word response regarding the differences between the direct and indirect presentation of cash flows. Why does the Financial Accounting Standards Board allow both methods? Which do you prefer? Why?
|
|
Aggregate demand and aggregate supply analysis
: Consider again the case of a country that suffers an Ebola epidemic that reduces the population by 20%. (a) Given your answer for problem 8 in problem set 1, draw the Aggregate Demand and Aggregate Supply analysis (in the usual output-inflation graph..
|