Question: An engineer is making an annual return of 12% before taxes on the retirement investments placed through her employer. No taxes are paid on retirement

An engineer is making an annual return of 12% before taxes on the retirement investments placed through her employer. No taxes are paid on retirement earnings until they are withdrawn; however, she was told by her brother, an accountant, that this is the equivalent of an 8% per year after-tax return.
What percent of taxable income is her brother assuming to be taken by income taxes?

Step by Step Solution

★★★★★

3.47 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

012 0081 ta... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

217-B-E-M (1749).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Water flows steadily through the variable area pipe shown in the Figure below. Determine the manometer reading, H, if the flowrate is 0.5m/s and the density of the manometer fluid is 800kg/m. Assume...

loss before taxes on the income statement was 522000 a new tax rate of 27 was enacted for 2014 and all future years The previous tax rate had been 30 taxable income for the 2013 year was 351000 and...

The owner of a business told her accountant that she paid her personal revolving charge account with a 30-day, 6.5 percent note for $ 10,000, signed by her business. At the end of the 30 days, the...

An accounts receivable supervisor was laid off by her employer after taking an extended disability leave for pregnancy. She claimed that the employer discriminated against her on the basis of gender...

List all assumptions you have used for your reccomendations such as interest rate, inflation, rate of return, etc. (for a financial plan/analysis) Sheldon and Amy Cooper have come to you, a financial...

List any items you think may help the family to improve their financial position to be addressed in the future. Attached are the case facts Sheldon and Amy Cooper have come to wxu, a financial...

Amy has asked you to comment on her TSA plan performance. Specifically, she wants to know how well the fund is performing relative to what is expected using CAPM. Also, she is concerned that the fund...

Breifly list the goals you would like to accomplish for your clients in this reccomendation. Sheldon and Amy Cooper have come to wxu, a financial planner, for help in developing a plan to accomplish...

Amy asked you to explain how an FSA works and what the benefit of participation would be to their finances. She has asked you to calculate any tax savings they would derive. give your analysis,...

Sheldon called you and said Ted was going to request information from you on the income and expenses for the rental property. Due to several vacated spaces the current information is not as favorable...

could you assist me in completing this pass paper please MGMT2023 Financial Management 1- Final Exam of Semester 2, 2014 Study Guide Exam format & instructions 1) The Final Exam will be 2 hours and...

Write a recommendation report Write a report that recommends the actions that the unit or organization you work for must take. Convey your report to people who will have the power to approve your...

List several audit procedures that the auditor can use to determine whether all cash received was recorded.

Which person is avoiding accountability? Multiple choice question. Masha knew the meeting was this afternoon; she did not return from lunch. Tony noticed that not one person had brought up the...

1. Which promotional mix elements does Volvo Trucks use? 2. How does the "Live Tests" campaign demonstrate the characteristic of integrated marketing communication? What grade would you give "Live...

Bendana Corporation is a Canadian company that specializes in the construction of sports facilities. Although its head office is in Edmonton, final approval of all major construction projects is...

Maneesha has completed an analysis of the market for a prescription medication. She has determined that the policymaker should act to prevent an increase in the price of this drug on the grounds that...

Assume that the duration of human pregnancies can be described by a Normal model with mean 266 days and standard deviation 16 days. a) What percentage of pregnancies should last between 270 and 280...

Suppose that the government has raised by $10 a per-carat tax rate it imposes on diamonds in an effort to influence production of this particular good by each of the firms that produce it and...

7. The analyst also tells you that shares in Chris Mining plc have no systematic risk, in other words that the returns on its shares are completely unrelated to movements in the market. The value of...

Calculate and print out the balance due, principal payment, and interest payment for each period of a new car loan. The nominal interest is 9% per year, compounded monthly. Payments are made monthly...

For the new car loan of Problem 4-128, graph the monthly payment. (a) As a function of the interest rate (4-14%). (b) As a function of the number of payments (36-84).

Your beginning salary is $50,000. You deposit 10% at the end of each year in a savings account that earns 6% interest. Your salary increases by 5% per year. What value does your savings book show...

The newspaper reported last week that Bennington Enterprises earned $34.18 million this year. The report also stated that the firm's return on equity is 13 percent. The firm retains 80 percent of its...

The formula to compute direct materials price variance is to calculate the difference between a. actual costs - (actual quantity * standard price) b. actual cost + standard costs c. actual cost -...

Chapter 11 mini case The questions A through N are as follows a. should Caledonia focus on cash flows or accounting profits in making its capital-budgeting decisions? should the compny be interested...