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kakasveta [241]
3 years ago
6

Sofia pays Sam $50 to mow her lawn every week. When the government levies a mowing tax of $10 on Sam, he raises his price to $60

. Sofia continues to hire him at the higher price. What is the change in producer sur- plus, change in consumer surplus, and deadweight loss? a. $0, $0, $10 h b. $0, -$10, $0 c. +$10, -$10, $10 d. +$10,-$10, $0
Business
1 answer:
Studentka2010 [4]3 years ago
7 0

Answer:

b. $0, -$10, $0

Explanation:

Sam is the producer, and he was getting $50 for moving Sofia's lawn. When the government imposes a tax of $10 on his activity, he now receives $60, but because $10 of those $60 is paid in taxes, his surplus remains the same: $50, so the change in the producer's surplus is $0.

Sofia is the consumer, and she was paying $50, but now she pays $60, thus, her consumer surplus has changed by -$10.

The sum of the change in consumer and producer surplus is $10 ($0 + $10), which is the same as the growth of government revenue from the taxes imposed: $10, therefore, the deadweight loss is $0.

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Grand River Corporation reported taxable income of $600,000 in year 1 and paid federal income taxes of $155,000. Not included in
Paul [167]

Answer:

$444,000

Explanation:

current earnings and profits = (taxable income - income taxes) - meals expense + tax exempt income = ($600,000 - $155,000) - $3,000 + $2,000 = $444,000

Disallowed expenses are expenses made by an individual or company that the IRS doesn't allow to be deducted, e.g. meals. Tax exempt income is income that is not taxed by the IRS, e.g. DRD includes at least 70% of dividends received.

Deferred gains or unearned revenues are considered a liability and are not included in the income statement.

7 0
3 years ago
1. Which of the following is NOT a reason why employees lose their jobs?
stich3 [128]

Answer:B. Good attendance

Explanation: Employers want their employees to have good attendance, this is a good quality, it is NOT a reason why employees lose their jobs.

4 0
3 years ago
Mortimer loves sushi. he loves sushi so much that he asks his congressional representative to work for passage of a binding pric
Flauer [41]

First option.

Indeed, some people may benefit by paying the artificial price, but not all as other people may not be able to satisffy all their demand as a price ceiling will also effectively create a shortage due to the low prices disincentivizing producers.

8 0
3 years ago
In 2016, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients andearned $25,000. The client
Artemon [7]

Answer:

$27,333.33

Explanation:

The computation of the amount of income reported is shown below:

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= $25,000 + $12,000 × 7 months ÷ 36 months

= $25,000 + $2,333.33

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7 0
3 years ago
1. If the price of the share grows as the company grows, how does buying 25 points
Simora [160]

Answer: b. An investor will be able to sell these shares for a higher price and make a profit.

Explanation:

Capital gains are a way to earn a return from owning stock in a company. They involve buying stock at a certain price and then selling the stock when the price increases. The difference between the selling and the buying prices is your capital gain.

This is the benefit to the investor here. If they buy a stock that grows with the company. They will be able to sell at a higher price eventually such that they will make a capital gain.

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3 years ago
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