Answer:
A. Opportunity cost
Explanation:
In Economics, Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
Hence, the opportunity cost of a choice is the benefits that could be derived in from another choice using the same amount of resources.
For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.
In this scenario, you choose to complete your homework rather than watch television so that you can earn a good grade. Therefore, you made the choice with the lowest opportunity cost.
Answer:
C.
Explanation:
Because naturally within a market the equilibrium price is trying to be reached, (besides price ceilings and floors imposed by the government), Sellers will naturally push the price downwards because they must compete with each other to make a living. Thus answer C. is correct.
Answer:
Date Description Debit Credit
March, 31 Payroll Tax expense $2,320.50
FICA Social Security taxes $1,054
FICA Medicare taxes $ 246.50
FUTA taxes $ 102
SUTA taxes $ 918
<u>Working </u>
FICA Social Security taxes = 1,700 * 10 * 6.2% = $1,054
FICA Medicare taxes = 1,700 * 10 * 1.45% = $246.50
FUTA Taxes = 1,700 * 10 * 0.6% = $102
SUTA Taxes = 1,700 * 10 * 5.4% = $918
Payroll Tax expense = 1,054 + 246.50 + 102 + 918 = $2,320.50
Answer: the correct answer is B. Tax depreciation for the period exceeds book depreciation.
Answer:
10%
Explanation:
Given that,
Interest at last year debt = 8%
Current year cost of debt = 25% higher
Firms paid for debt last year = 10%
Firms paid for debt in current year = 12.50%
Kd - cost of debt
Yield = Interest at last year debt × (1 + increase in cost of debt)
= 8% × (1 + 0.25)
= 8% × 1.25
= 10%
Kd = Yield (1 – T)
Kd = 10% (1 – 0)
= 10% (1)
= 10%
Therefore, after tax cost of debt would be 10%.
