Based on the information given, it should be noted that the amount of William's pension distribution that is taxable is $30000.
From the information given, William is a retired single taxpayer and he received a monthly pension of $2,500 ($30,000 annually). He did not contribute any after-tax dollars to the plan.
It should be noted that pension is counted as a regular income for tax purposes. Therefore, the pension that'll be received by William will be a taxable income
Therefore, the taxable amount will be $30000.
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Answer:
c. A credit to Cash of $272.75.
Explanation:
These transactions can be explained with the help of T- Account .
<h2><u> Cash </u></h2><h3><u>Debit Credit </u></h3>
Bal $ 500
Freight $61
Shipping
Charges $ 85
Supplies $ 50
Donation $ 69
Suspense 7.75
<u>Fund $ 227.25 </u>
Fund $ 227.25
<u> Reimbursement </u><u> $272.75</u>
<u> $ 500 </u>
<u />
<em><u>As there is shortage of $ 272.25 in the amount of $ 500 the petty cash will be reimbursed with this amount.</u></em>
<em><u>An amount of $ 7.75 is short which is dealt in suspense account and reimbursed with the amount falling short.</u></em>
Answer:
d
Explanation:
A change in price leads to two effects :
- The income effect
- The substitution effect
The income effect is the change in quantity demanded as a result of a change in real income which affects the consumes purchasing power.
A car constitutes a very large part of a consumers expenditure due to its cost. Thus, the income effect for a car would be the largest
The substitution effect is the change in demand as a result of change in the price of the good compared to the price of another substitute good.
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