Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2011. Robert has an operation on his big toe in 2011 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true?
Answer

1. Robert has to claim the $1,200 premium paid by his employer as income in 2011.
2. Robert must claim the $6,800 paid by the insurance company for the operation as income in 2011.
3. Robert must claim the $1,200 premium and the $6,800 insurance payment as income in 2011.
4. None of these events are taxable on his 2011 return.

Eileen's elegant earrings produces pairs of earrings for its mail order catalogue business. each pair is shipped in a separate box. she rents a small room for $150 a week in the downtown business district that serves as her factory. she can hire workers for $275 a week. there are no implicit costs. what is the marginal product of the second worker?

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's

Lin corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. the company’s monthly fixed expense is $32,400. required: 1. calculate the unit sales needed to attain a target profit of $5,000. (do not round intermediate calculations.) 2. calculate the dollar sales needed to attain a target profit of $8,400.