85% is the right answer because I said so...
Answer:
The question requires the answering party to pick all that apply as found in the attached.
A. The initial payment will be recorded as an increase to a Prepaid Insurance account.
B. Over time, the expired portion of the policy must be removed from the asset account as it has been used up and is no longer considered an asset.
C. As a portion of the policy expires, the expired portion will be removed and transferred to an expense account.
Explanation:
The initial payment will be recorded as increase to an asset account,prepaid insurance is a correct statement,pending when the insurance cost is cost,
Subsequently,the expired the portion of the prepayment would be removed from the account,hence point B is also correct.
Finally,when the expired portion is removed from prepaid insurance account,it is transferred to insurance expense account,point C is also on point.
Question 1 Completion with Options:
A. used equipment
B. storage warehouse
C. land for future building site
D. new office furniture
E. apartment complex
F. new delivery truck
Answer:
1. The assets purchased in the current year that are eligible to be expensed under Section 179 assuming the cost does NOT exceed the limitations are:
A. used equipment
D. new office furniture
F. new delivery truck
2. $561,000 is the maximum to be expensed with an adjusted basis of 100% for MACRS
Explanation:
There is a maximum deduction of $1,050,000 under section 179. The section affords eligible taxpayers the opportunity to reduce their tax burden in the first year that they purchase eligible properties.
Answer:
The answer is:
1. consumers' expenditure increases by $150 billion
2. output will decrease by $600 billion
Explanation:
Tax impact:
$300 billion x 0.5
= $150 billion.
If taxes are lowered by $300 billion, consumers' expenditure increases by $150 billion because with lower tax, there is money money to be spent because their disposable income has increased.
Government spending impact:
$300/(1-0.5)
$300/0.5
=$600 billion.
Due to government spending that has increased by this amount, output will decrease by this amount too because government has directly competed with firms that should have used this money to increase the total output.
Therefore, net effect on total output is $300billion($600 - $300)
Answer:
B. It eliminated all tariffs and non-tariff trade barriers from within North America.
Explanation:
The North American Free Trade Agreement was a pact formed between America, Canada, and Mexico to encourage trade between these three countries. This pact encouraged trade within these three nations by eliminating tariff barriers that would otherwise have limited trade between the countries.
NAFTA became active on January 1, 1994. NAFTA today has been replaced by another agreement known as the United States- Mexico Trade Agreement. This was made possible by President Donald Trump who believed that NAFTA was not really fair on America.
