Answer:
Net income of the company accounted for $400,000
Explanation:
Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.
The net income or loss of the company accounted for is computed as:
Net Income or Loss = Net Income - Research and Development cost
where
Net Income amounts to $3,400,000
Research and Development cost amounts to $3,000,000
So, putting the values above:
Net Income or loss = $3,400,000 - $3,000,000
Net Income = $400,000
Answer: tax revenue
Explanation:
The Laffer Curve was developed by Arthur Laffer and it depicts the relationship that exists between the tax rates and tax revenue.which the government collects.
The curve is typically used to show that there can be an increase in the total revenue for an economy when the tax rate is reduced.
Answer: debit to Stock Investments for $55,080.
Explanation:
As this is an investment in another company, it will count as an asset which means that when it increases, the account will have to be debited. It will therefore be debited for $55,080 to show the investment.
Cash will decrease by the same amount which means that it will have to be credited because assets are credited when they decrease.
Dr Stock Investments $55,080
Cr Cash $55,080
