Terry is a worker in the country Pretoria. His salary is $46,000 and his taxable income is $52,000 . Pretoria imposes a Worker Tax as follows:
Employers withhold a tax of 20% of all wages and salaries. If taxable income as reported on the employee's income tax return is greater than $50,000, an additional 10% tax is withheld on all income. Terry's marginal tax rate is:
a. 0%
b. 10%
c. 20%
d. 30%
d
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My purchased property insurance coverage on her home. The form she purchased provided actual cash value, named-perils coverage on the dwelling. Personal property was covered on a named-perils basis and the policy did not provide personal liability coverage. What type of policy did Amy purchase?
a) Mobile home policy b) Dwelling Property 1 c) Homeowners 3 policy d) Dwelling Property 3
John won the lottery on Monday and can take either $50,000 per year for 20 years, or $500,000 today. Bill won
the same lottery on Tuesday and has the same options for receiving the cash. A well respected financial advisor is hired by both John and Bill. The advisor recommends that John take the $50,000 per year for 20 years but advises Bill to take the $500,000 up front payment. How is it possible to give different advice to two clients regarding the exact same cash flows?