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ira [324]
3 years ago
10

3 . Relationship between tax revenues, deadweight loss, and demandelasticity

Business
1 answer:
Molodets [167]3 years ago
5 0
Taxing a good with relatively less elastic demand, helps government to raise more revenue with lower welfare loss.
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Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000, for 50 shares in Crow C
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Explanation: With respect to the transfers: Crow will have a business deduction of $120,000 for the value of the services Mary will render.

This is calculated by the difference between the value of the property contributed by Earl $1 600 000 and the value of the property contributed by Mary $1 480 000.

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<h3>What is an acquisition?</h3>

This is a business arrangement whereby a company purchases most or all of another company's shares to gain control of that company.

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