Problem
Discuss the differences between tax and accounting rules for meals. How do these differences affect profits and taxes?
What is the role of businesses in sales tax collections?
If a business purchases a piece of machinery on January 1 for $150,000 that has an expected life of 10 years, how much would be depreciated during the first year using straight-line depreciation?
If a business purchases a piece of machinery on January 1 for $150,000 that has an expected life of 10 years, how much could be depreciated during the first year using section 179 depreciation?
If the sales tax rate is 7% and a customer purchases an item in the store for $32.99, how much sales tax should be collected?
If the sales tax rate is 6.5% and an out-of-state customer makes an internet purchase for $89.37, how much sales tax should be collected?
For problems 7 to 10, assume that the federal income tax withholding rate is 15%, the state income tax withholding rate is 5%, and the Social Security and Medicare tax rate for both the employer and the employee is 7.65%.
If an employee is paid a salary of $50,000 per year, after Social Security and Medicare taxes, what is the cost of the employee to the business?
If an employee is paid a salary of $1,000 per week, how much will the employer withhold from the employee's check?
If an employee is paid a salary of $1,000 per week, how much will the employer remit in payroll tax payments?
If an employee is paid a salary of $1,000 per week, what is the employee's take-home pay after taxes?
What is likely to happen if a business fails to pay its taxes?