Colorado has a state income tax of 4.63 percent on all income and a sales tax of 2.9 percent. Are these taxes proportional, progressive, or regressive? Give reasons for your answers.

Which of the following is not a closing entry?

The U.S. per capita (per person) income can be modeled by

$$f(x)=1550(x-2011)+50,000,$$

where $x$ is the year. Determine the year when the per capita income might be $\$ 62,400$.

Use the adjusted trial balance from the previous Work Together exercise. Forms are given in the Working Papers.

1. Complete the income statement for the current year. Calculate and record the following vertical analysis ratios:

(f) net income before federal income tax.

Round percentage calculations to the nearest 0.01 %.

Iacouva Company reported the following on the company’s income statement for 2014 and 2013:

$$\begin{array}{lcc} & \mathbf{2014} & \mathbf{2013} \\ \hline \text { Interest expense } & \$ 5,000,000 & \$ 5,000,000 \\ \text { Income before income tax } & 3,500,000 & 6,000,000 \end{array}$$

b. What conclusions can you draw?

Explain the relationship between the terms in each of these pairs. a. taxable income, tax return b. FICA, Social Security c. estate tax, gift tax

Larry earns $25,000 and pays$2,500 in tax, while Suzy earns $50,000 and pays$15,000 in tax. If Larry’s income increases by $100, his tax increases by$12, but if Suzy’s income increases by $100, her tax increases by$35. Calculate the average tax rate and marginal tax rate that Larry pays and that Suzy pays. Is this income tax fair? Explain.

Iacouva Company reported the following on the company’s income statement for 2014 and 2013:

$$\begin{array}{l} &\textbf{2014}&\textbf{2013}\\ \hline \text{Interest expense}&\$5,000,000&\$ 5,000,000\\ \text{Income before income tax}&3,500,000&6,000,000\\ \end{array}$$

b. What conclusions can you draw?

The monthly income I, in dollars, from a new product can be calculated by

$$I(f)=8600-5500 e^{-0.005 t}$$

where $t$ is the time, in months, since the product was first put on the market.

a. What was the monthly income after the 10 th month and after the 100 th month?

b. What will the monthly income from the product approach as the time increases without bound?

Explain the distribution of taxes paid by income level

Explain what is meant by a segmented income statement.

Use the 1% solution to solve the problem. Maria has an annual income of $32,000. If she saves 8% of her income, how much money does she save?

In 1999, the Internal Revenue Service received 127,075,145 individual tax returns. Of these, 9,534,653 reported an adjusted gross income of at least $100,000, and 205,124 reported at least$ 1 million.

If you know that the return chosen shows an income of $100,000 or more, what is the conditional probability that the income is at least$ 1 million?

The Harrod-Hicks model predicts that if a national economy is growing, then the national income in one year is related to the national income in the preceding year. If we let f(n) be the national income in year n, then the model predicts, for some constants k and h with k>1 and h>0, that

$$f(n+1)=k f(n)-h$$

Let C=f(0). Write f(1), f(2), and f(3) in terms of k, h, and C.