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1 year ago

If g = $800 billion, tax receipts = $850 billion, and there is an inflationary gap of $100 billion, there is?

1 answer:

6 0

If g = $800 billion, tax receipts = $850 billion, and there is an inflationary gap of $100 billion, there is a budget surplus.

Taxes are mandatory contributions levied on people or businesses by means of a government entity—whether or not nearby, local, or country-wide. Tax revenues finance authorities' sports, including public works and offerings consisting of roads and colleges, or programs which include Social Protection and Medicare.

The principal purpose of taxation is to elevate sales for the services and profits that help the network's desires. Public revenues ought to be good enough for that motive. 2. Tax should, as far as viable, be levied equitably, consistent with the potential to pay.

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Carla Vista Co. issued $590,000, 10-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on Januar

34kurt

Answer:

cash 595,900 debit

bonds payable 590,000 credit

premium on bonds 5,900 credit

Explanation:

We have to record the issuance of the bonds:

cash proceeds:

face value x quote:

590,000 x 101/100 = 595,900

face value (590,000)

premium 5,900

There is a premium as we are receiving more than we are going to pay at maturity.

We will debit the cash proceeds form the bond

and credit the bonds and premium

6 0

3 years ago

Solaris, Inc. has 2000 shares of 5%, $10 par value, cumulative preferred stock and 50000 shares of $1 par value common stock out

lubasha [3.4K]

The annual dividend on the preferred stock is $1000 in total.

<h3>What is an Annual dividend?</h3>

An annual dividend is a payment made by an insurance firm to its policyholders each year in the insurance sector. Annual dividends are most frequently given out in combination with plans that provide long-term disability insurance and permanent life insurance.
A payment made annually to an insurance policyholder, frequently under a long-term disability or permanent life insurance policy, is known as an annual dividend.
The insurance company's income, the success of investments, and the amount of money invested all affect the dividend amount.

Annual profits may be paid as cash, used to pay for further insurance, or added to premiums to lower future total payments.

The company has 2000 shares of 5% that is: (2000*5)/100 = 100

with a par value of $10, which becomes:

100*$10 = $1000.

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3 0

2 years ago

The owners of a corporation are the __________ (shareholders of the company, board of directors, or management team members). Th

mario62 [17]

Answer :

The owners of a corporation are the __________ (shareholders of the company, board of directors, or management team members). The primary goal of the corporate management team is to (minimize or maximize) the shareholder's wealth by __________ (minimizing or maximizing) the company's (employee retention and efficiency, company's stock price, or company's production costs) over the long run.

Explanation :

Shareholders are the primary owners of the company who have company's common stock with expectation on their investment in form of dividends and share appreciation.

The primary goal of the corporate management team is to maximize the wealth of their principal (shareholders) who have entrusted them with their fortunes .

Shareholders' wealth maximization objective is achieved when management team invest in a viable project or reduce the operating costs of the company.

6 0

2 years ago

Silvana Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintain

Goshia [24]

Answer:

The dividend payout ratio is 43.33% as shown below

Explanation:

EBIT is an acronym for earnings before interest and tax, it is given as $2 million.In other words, to arrive at net income we need to deduct interest on loan and tax.

EBIT $2000000

less interest(5000000*10%) ($500000)

Earnings before tax $1500000

Tax @40% ($600000)

Net income $900000

Since capital project requires 60% of equity(net income belongs to equity holders),hence we need to deduct 60% of capital outlay from net income to arrive at distributable earnings.

distributable earnings =$900000-(60%*$850000)

=$390000

Hence dividend payout ratio=distributable earnings/net income

=$390000/$900000

=43.33%

8 0

3 years ago

On july 1, shady creek resort borrowed $280,000 cash by signing a 10-year, 9.5% installment note requiring equal payments each j

Diano4ka-milaya [45]

Answer:

$26,600

Explanation:

the total amount of interest expense included in the first annual principal (or any annual payment actually) = principal's balance x yearly interest rate

$280,000 x 9.5% = $26,600

the principal's balance after the first payment = $280,000 - $26,600 = $253,400

the interest expense included in the second payment = $253,400 x 9.5% = $24,073

3 0

3 years ago