1. Use the table to answer the question that follows. Tax Name Investment Earnings Tax Rate
Dividend Income Tax Stock dividends If in botton two tax brackets, not taxed If in top four brackets, taxed at 15%
Interest Income Tax Bond coupons Taxed as ordinary incore: 10% to 35% Exception: Municipal bond coupons are not taxed.
Gain from sale of
Capital Gains Tax
Held for one year or less (short-term): taxed as ordinary income Held for more than one year (long-term): taxed as dividend income
stocks or bonds
Eric's income puts him in the second tax bracket (15%) last year. During the same year, he earned $S15 in dividends and $65 in coupons on a municipal bond. In March, he purchased a common stock for $20
months later for $915. What is the total Eric will pay in taxes on last year's investments? (3 points)
O $117.00
O $107.25
ооо
O $184.50
0 $0.00

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.

Why do you think the compensation plans differ at the two firms? in particular, why do you think kaufmann’s pays commissions to salespeople, while parkleigh does not? why does parkleigh offer employees discounts on purchases, while kaufmann’s does not?