Chapter 6

Problem 1: Solution

1. valueable IncomeTax Rate
$0 - $20,00010%
$20,000 - $50,000$2,000 + 20% of the amount everyplace $20,000
> $50,000$8,000 + 30% of the amount over $50,000

First $20,000 × .10 = $ 2,000
Next$30,000 × .20 = $ 6,000
Next$10,000 × .30 = $ 3,000
Total$60,000 $11,000 = Total Tax Liability

2.Federal Income Taxes / Taxable Income = Average Tax Rate
= $11,000 / $60,000 = 18.33%

Problem 2: Solution

The luck terms of building a new lodgement facility on this land is the best foregone opportunity of selling the land today for $500,000 net of appraise.

Cash Flow
merchandising price$500,000 $500,000
salute 100,000

Gain on sale 400,000
Incr. tax rate 0.3 -120,000

Net cash flow $380,000

Problem 3: Solution

1.The account expenses of the rooms department total $21,450. These expenses accept the paysheet and related expenses of $20,000 and other expenses of $1,450.
2.Overhead expenses total $77,356. These expenses include both expense other than the direct expenses of the profit centers. Therefore, the overhead expenses include the undistributed operating expenses, fixed charges, and income taxes.
3.



Costs controllable by the GM and by those under his/her supervision include both expenses prior to gross operating profit. Thus, the undistributed operating expenses and direct be of the profit centers are the controllable expenses.
4.The fixed costs are the fixed charges of rent, property taxes, insurance, interest, and depreciation. Other expenses also whitethorn be fixed, but further investigation would be required.
5.The cost of sales is considered to be a variable expense.
Problem 4: Solution

1.
Electric ExpenseOccupancy %
High Month (August)$7,200 78%
Low Month (December)$5,500 50%
$1,700 28%

Mixed Cost Difference / Occupancy % Difference = Variable Cost per 1% of Occupancy
= $1,700 / 28% = $60.71

2. December Occupancy % ×...If you want to get a full essay, order it on our website: Ordercustompaper.com



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