Answer:
The remaining part of the question is given below:
(Note that the subsidy can be granted to the education institutions or to the students directly or indirectly; for example, through low- interest student loans.)
a. P2-P0
b. P2-P1
c. P0-P1
d. P1
<u>Correct Answer:</u>
b. P2-P1
Explanation:
A pigouvian subsidy is a subsidy that is used to encourage behaviour that have positive effects on others who are not involved or society at large. <em>Behaviors or actions that are a benefit to others who are not involved in the transaction are called positive externalities.</em>
Answer:
1. Drawings A/c. dr. 15,000
To Cash A/c. 15,000
2. Cash A/c. Dr. 63,000
To Sales A/c. 63,000
3. Drawings A/c. Dr. 12,000
To Cash A/c. 12,000
4. Purchases A/c. Dr. 31,000
To Creditors A/c. 31,000
5. Drawings A/c. Dr. 16,000
To Purchases A/c. 16,000
6. Dalip Singh A/c. Dr.35,000
To Sales A/c. 35,000
7. Rent A/c. Dr. 22,000
To Bank A/c. 22,000
8. Purchases A/c. Dr. 19,000
To Cash A/c. 19,000
Answer:
$0
Explanation:
Alfred paid in premiums = $18,300
company paid Alfred = $125,000
Alfred died after 18 months, then,
Company collected the face amount of the policy = $150,000
Sale of policy = [ company compensation - premium paid]
= $125,000 - $18,300
= $106,700
In this situation, Alfred receives the submission price from the insurance company consequential in profit.
There is no gain in the income of the insurance policy that is purchased by the Alfred for the long term.
That's why he is not required to include the amount of sale of policy i.e. $106,700.
Hence, Alfred required to include in his gross income will be zero ($0).
Investors would be the answer
