Answer: $1,750
Explanation:
Incurring a health insurance cost of $5,000 or increasing salaries by $5,000 will have the same effect on the taxes because they will both be removed from the income before the taxes are calculated.
The reduction in tax in either case is:
= Expense * Tax rate
= 5,000 * 35%
= $1,750
Answer:
Answer to this is both option (i) and option (iii).
Explanation:
Change in technology generally affects the change in productivity as well as the change in labor demand. In the case of Labor-augmenting (improving) technology, it is found that the positive change in technology leads to the increasing marginal productivity of labor. This increase of marginal productivity of labor shifts the labor-demand curve towards right. Thus, Labor-augmenting (improving) technology causes marginal productivity of labor to increase which further leads to shifting of the labor-demand curve towards right.
Answer:
1. - $ 80,000
2. - $ 80,000
3. - $ 0 - No effect
Explanation:
1. Assets
- <em>80,000</em> ( pay loan ) - decrease
2. Liabilities
- 80,000 ( loan from <em>+</em><em> 80,000 </em> to <em>0</em> ) - decrease
3. Stockholders Equity: no change, as there was not result ( profit/loss ) nor shareholder contribution/withdrawal
Answer:
False
Explanation:
The provision of the Uniform Commercial Code as amended is that any missing terms such as price, quantity,location and expected time of delivery as well as payment terms can be added to the contract later on with consent of all parties involved or provided in compliance with other commercial codes.
In other words,the fact that payment should be made within seven working days when payment terms are missing is alien to Uniform Commercial Code.
The answer, therefore is false.
Answer:
The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.
Explanation:
The shareholder's equity can be defined as the net value of a company. It basically is the amount that shareholders would receive if all the company's assets were liquidated and all of the company's debt also paid back. The shareholder's equity is usually found on the company's balance sheet and can be used as a financial measure to determine the company's financial status. The shareholder's equity is determined from subtracting the company's totals liabilities from its total assets. This can be expressed in the formula below;
E=A-L....equation 1
where;
E=shareholder's equity
A=total assets
L=total liabilities
The total assets represents everything that has some economic value to the company. A liability is an obligation to something or anything of economic value that the company owes. In our case, the company has an obligation to pay it's creditors $6,460 at the end of they year. This is a liability.
Use equation 1 above to solve;
E=unknown, to be determined
A=$6,304
L=$6,460
replacing;
E=(6,304-6,460)=-$156
The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.
