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12hw - 13(a ATRR = 12.47(b ROR = 7.9 14 ATRR with...

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Chapter 12 Answers 1 Federal: (a) \$7146; (b) \$11,466; increase \$4,320 2 John:\$7618.50; Mary:\$6336; Joint:\$15562.50 3 Additional Income = \$(3060 - 1620) = \$1440 4 Tax = \$10162.5 5 Incorporation: \$8,700; Proprietorship: \$13.021.50 6 X = 5 months 7 Tax. Inc. :\$170,000; Tax: \$41,550 8 The total taxes paid will be the same 9 18.27% 10 ATRR = 10.9% 11 State: \$14400; Federal: \$36134; Combined rate=44.86% 12 Combined rate = 36.5%
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Unformatted text preview: 13 (a) ATRR = 12.47%; (b) ROR = 7.9% 14 ATRR with assumption (a): 5.4%; with asssumption (b) 7.45% 15 ATRR = 4.5%, hence will not obtain 6% 16 ATRR = 14% 17 (a) 18.6%; (b)ATRR = 11.8%; (c) 9.3% 18 ATCF: -1000, +423.6, +252.9, +157.8, +65.2, +119.6; ROR>10% 19 ATRR = 14.9% 20 ATRR = 12.88%; investment was satisfactory 28 AT PW = -\$11,028 29 ATRR = 5.6%...
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