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3 years ago

By how many packs of cigarettes does quantity demanded decrease due to the excise tax on cigarettes?

Business

1 answer:

andrezito [222]3 years ago

3 0

Answer:

Explanation:

The government taxes packs of cigarettes both to discourage smoking and to raise tax revenue. The average excise tax on a pack of cigarettes is $2.50 per pack. The table below presents the annual demand and supply schedules, in billions of packs, both before and after the tax on packs of cigarettes.

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Global Corporation distributed property with an $850,000 fair market value and a $415,000 adjusted basis to one of its sharehold

Juliette [100K]

Answer:

1. The amount of the shareholder's dividend income on the distribution is $620,000.

2. The shareholder's basis in the property received is $850,000.

Explanation:

1. What is the amount of the shareholder's dividend income on the distribution?

From the question, it is stated that the property distributed was subject to a $230,000 mortgage which the shareholder assumed. This implies that the shareholder has taken up responsibility of paying off the mortgage loan. This will reduce the amount of dividend paid to the shareholder as follows:

Shareholder's dividend income = $850,000 - $230,000 = $620,000.

Therefore, the amount of the shareholder's dividend income on the distribution is $620,000.

2. What is the shareholder's basis in the property received?

When property is distributed to shareholders, the shareholder's basis in the distributed property is considered to be the fair market value (FMV) of the distributed property and it will be treated as if the distribution had been made in cash.

Therefore, the shareholder's basis in the property received is $850,000 which its fair market value.

4 0

3 years ago

The accounting records of Baddour Company provided the data below.

Tom [10]

Answer:

Net cash flow from operating activities $1,700

Explanation:

The preparation of the reconciliation of net income to net cash flows from operating activities is shown below:

Net loss -$5,000

Add: Depreciation expense 6,000

Add: Increase in salaries payable 500

Add: Decrease in accounts receivable 2,000

Less; Increase in inventory 2,300

Add; Amortization of patent 300

Add; Reduction in discount on bonds 200

Net cash flow from operating activities $1,700

5 0

3 years ago

What is the payback (in years) of a project with the following cash flows? Year 0 1 2 3 Cash Flow -$100 40 40 80 Group of answer

galina1969 [7]

Answer:

2.25 years

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Please check the attached image for a table showing how the payback period was calculated

6 0

3 years ago

1. Python acquires 80% of the voting stock of Slither on January 1, 2020 for $4,000. The fair value of the noncontrolling intere

disa [49]

Answer:

C. $400

Explanation:

Amount for NCI to be eliminated = (280+120) = $400

stock = 600*0.2=$120

Retained Earnings = 1400*0.2= $280

7 0

3 years ago

What are high-risk loans?

Elan Coil [88]

I think D

Step by step explanation

7 0

3 years ago