Bob Wright owned 100 shares of Lawson Company's convertible preferred stock at 10 par value. He converted each share of preferred stock into three shares of common stock. If Bob Wright paid 10 per share for his preferred stock, and if common stock was selling at 4 per share on the date of conversion, compute the amount that Bob Wright's investment increased in value.
Q. 2The required deduction for Social Security is 6.2 OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of 97,500 and 1.45 HI (Hospital Insurance, commonly known as Medicare) for all earnings. Employers are required to match the employee's deductions and send the total to the IRS. Compute the maximum percent that can be sent to the IRS for any one employee during the period of a year.
Q. 3Bob Wright owned 100 shares of Lawson Company's convertible preferred stock at 10 par value. He converted each share of preferred stock into three shares of common stock. If common stock was selling at 4 per share on the date of conversion, compute Bob Wright's common stock worth.
Q. 4The required deduction for Social Security is 6.2 OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of 97,500 and 1.45 HI (Hospital Insurance, commonly known as Medicare) for all earnings. Compute the deduction for Social Security and Medicare during the period of a year assuming a person earns 112,000.
Q. 5Bob Wright owned 100 shares of Lawson Company's convertible preferred stock at 10 par value. He converted each share of preferred stock into three shares of common stock. Compute the number of shares of common stock Bob Wright received when he converted the shares.
Q. 6The required deduction for Social Security is 6.2 OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of 97,500 and 1.45 HI (Hospital Insurance, commonly known as Medicare) for all earnings. Enrique Marsh earns a monthly salary of 4,200 . Compute the amount deducted over the period of a year for Social Security and Medicare.
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