Mr. lion, who is in the 37 percent tax bracket, is the sole shareholder of toto inc., which manufactures greeting cards. toto’s average annual net profit (before deduction of mr. lion’s salary) is $350,000. for each of the following cases, compute the income tax burden on this profit. (ignore any payroll tax consequences.) mr. lion’s salary is $100,000, and toto pays no dividends. mr. lion’s salary is $100,000, and toto distributes its after-tax income as a dividend. toto is an s corporation. mr. lion’s salary is $100,000, and toto makes no cash distributions. assume toto's ordinary income qualifies for the 20 percent qbi deduction. toto is an s corporation. mr. lion draws no salary, and toto makes no cash distributions. assume toto's ordinary income qualifies for the 20 percent qbi deduction. toto is an s corporation. mr. lion draws no salary, and toto makes cash distributions of all its income to mr. lion. assume toto's ordinary income qualifies for the 20 percent qbi deduction.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.

Which of the following best explains why buying a house is more beneficial than renting? a. buying is a personal investment while renting involves giving money to the landlord. b. the monthly payments on a mortgage are generally lower than rent on an apartment. c. it's easier to sell a house than it is to get a landlord to break a rental agreement. d. housing prices can go up and down quickly in comparison to the level of rents.