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Problem - Bob employs a maid to clean his house. He pays her $1,040 during the current year. What is the proper tax treatment of the Social Security and Medicare tax for the maid?
a. Bob is not required to pay or withhold Social Security and Medicare taxes on the $1,040.
b. The $1,040 is subject to the Medicare tax, but not the Social Security tax.
c. $500 is subject to the Social Security and Medicare tax.
d. Bob is required to withhold Social Security and Medicare taxes on the entire $1,040.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
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