Mexican Tax Case Study

This mortgage is 30 years, and 30 years multiplied by 12 months is equivalent to 360. 360 multiplied by the monthly paymenst of $745 is equivalent to $268,200 or the total of all monthly payments. The owner of this house paid a downpayment of 20% on the price ($195,000) fo the home, which is $39,000. $195,000 – 39,000 is equivalent to $156,000 or the amount financed. The Finance Charge or Interest is equivalent to the Total of all monthly payments ($268,000) – The amount financed ($156,000) which is equivalent to $112,000.

Beyond that exemption, donors must pay gift tax equal to 41 percent of the first $500,000 and 45 percent of any excess. The tax rate is reduced to 35 percent in 2011 and 2012 respectively. An additional amount each year is also exempted from both the tax and the lifetime exemption. The exemption of $13,000 in 2011 is indexed for inflation of $1,000 increments and is granted separately for each recipient. However, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 does allow the unused portion of the exemption from a decedent to be used by the estate of the surviving spouse on their subsequent death.

The time value of money tells us that the part of the $100 is interest, which is for waiting one year for the $100. Only $91 of the $100 is service revenue made in 2011, of that only $9 is interest earned in 2012. The calculation of present value will remove the interest, so that the amount of the service revenue can be determined. Another example might involve the purchase of land: the owners will either sell it to for $160,000 if he receives the money today, or for $200,000 if paid at the end of two years. At the end of two years, he would have earned interest for two years on the amount had he received it today.”

Trader A enters into a forward contract to buy gold for $1000 an ounce in one year. Trader B buys a call option to buy gold for $1000 an ounce in one year. The cost of the option is $100 an ounce. What is the difference between the positions of the traders? Show the profit per ounce as a function of the price of gold in one year for the two traders.

From the two separate land and building sales, HCC is taking in $10,563,161 for the property. Recall that HCC invested $16,102,702. That means at least $5,539,541 in tax dollars were lost on the Sienna location. HCC sold a $16 million dollar investment for $10.5 million. The way HCC is passing this off as zero-dollar loss because the deficit is filled by grant and tax dollars.

Kam Bank and Trust gave me option 1 of an interest rate of 3.75%, 30 years, and a down payment of 20%. The other option that the bank gave me was an interest rate of 4.5%, 30 years, and a down payment of 3%. I chose option 1 because when I calculated the monthly payments with the present value annuity formula the monthly payments were $1,089.25 instead of option 2 being a payment of $1,401.62 each month. Although, the down payment is greater for option 1 I would pay less each month. The 20% down payment for option 1 is $58,800.

Sales (40,000 x 5) 200,000.00 Cost of goods sold (40,000 x 3.50) 140,000.00 Gross Margin 60,000.00 Selling and Administrative expenses 50,000.00 (40,000 x 0.75 + 20,000) Net Operating Income 10,000.00 1(c) The net operating loss is determined by using the variable cost of 5,000 and then the net income is calculated with the absorption cost at 10,000. The variation happens because the absorption cost and the fixed overhead is capitalized within the inventories instead of being expensed on the income statement. If I take the variable costing and absorption costing the net operating incomes can be reconciled by figuring out how much of the fixed manufacturing overhead that was deferred within the inventories within the month. Fixed manufacturing overhead start of the inventories

The United States government would also lose $11.74 billion in taxes every year. That tax money goes to welfare to help the need or to construction crew to build our much needed

After reviewing the income statement, I can notice Lucky Leotis that when completing your financial statement, you lacked in following the rules of GAAPS. For this reason, your monthly income was higher then it should have been. I have attached the corrected copy and will explain the errors that you have made. When you had recorded the amount of interest revenue, you lacked to recognize that you were supposed to state the amount of revenue applicable for only that period (monthly). You had recorded the value of interest that you had to pay for the investment for the whole year, $ 7800, rather than stating the amount for the 16 days when it was initially purchased which was $ 335.48.

A trial for a person that would have to be sentenced to death costs $1.26 million while cases without capital punishment cost $740,000. Where is the jury getting money to fund the death penalty? Taxpayers. On average, taxpayers in states where capital punishment is legal have to pay at least $90,000 more a year to fund death row than taxpayers in states where the death penalty is illegal (http://www.forbes.com/sites/kellyphillipserb/2014/05/01/considering-the-death-penalty-your-tax-dollars-at-work/). A study done in 2011 found that California spends $184 million tax dollars a year to fund capital punishment.