A few examples of goods that would lead to little or no welfare loss when a tax is placed on them include:

Allisa [31]

D. a firm that has some control over the price of the product it sells

4 0

3 years ago

The idea that investors today compare the returns on bonds with differing times to maturity to see which is expected to give the

Zielflug [23.3K]

Answer:

expectations theory

Explanation:

Expectations theory is defined as the prediction of what short-term interest rates will amount to in future based on the current long-term interest rates on an investment.

The theory suggests or states that "an investor will earn the same amount of interest by investing in two consecutive one-year bond investments that in one two-year bond investment".

Simply put, the theory say that one can invest twice in a one year bond and still make the same interest rate as investing once in a two-year bond.

This theory helps investors to make profits faster and even higher through multiple investments on bonds.

Cheers.

8 0

2 years ago

Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square f

jekas [21]

Answer:

a) $7,400

b)$60,000

Explanation:

First, we need to complete the question

a) What is Rita's home office deduction for the current year?

b) What is Rita's AGI for the year?

Solution

a) Rita's Home Office Deduction for the Current Year

Description Amount ($)

Gross Income 13,000

Subtract: Her Business Expenses (5,600)

The balance 7,400

Subtract: Expenses under 1st Tier (6,700)

(Interest 5,100 + taxes 1,600)

Balance 700

Subtract: Expenses unde 2nd Tier (700)

($800 Operating Expernses before limit)

Balance 0

Subtract: Expenses under 3rd Tier (0)

1,600 Depreciation before limit

Net income from Rita's Business 0

The Deduction allowed Rita is $7,400 a totla of the home office expenses and the home operating expenses

Note that there was no expense subtracted for the Tier 3 expenses this is because Rita's income had reduced to $0 and there was nothing to subtract from

B) What is Rita's AGI for the year?

The AGI is the Rita's reported AGI of $60,000 + $0 which is the net calculated income from her business. So her AGI remains $60,000.

6 0

3 years ago

NDP Mp will be equal to:

Ivanshal [37]

Answer:

B) NDPFC + Indirect Taxes

Explanation:

Net domestic product (NDP) is obtained by subtracting depreciation from gross domestic product (GDP), and it can be calculated at market price (NDPmp) or at factor cost (NDPfc):

NDPmp = GDPmp – depreciation
NDPfc = GDPmp – depreciation – indirect taxes

If we substitute NDPfc into option B, we will get:

NDPmp = NDPfc + indirect taxes

NDPmp = (GDPmp - depreciation - indirect taxes) + indirect taxes

NDPmp = GDPmp - depreciation

6 0

3 years ago

A review of the ledger of Wildhorse Company at December 31, 2020, produces the following data pertaining to the preparation of a

Neko [114]

Answer:

Salaries expense 5,190

Salaries payable 5,190

unearned rent revenue 90940 debit

rent revenue 90940 credit

advertizing expense 6,800 debit

prepaid advertising 6,800 credit

interest expense 3,934 debit

interest payable 3,934 credit

Explanation:

Salaries accrued

5 employes $750 each = 3750

3 employees $480 each = 1440

Total = 5190

Rent revenue

$6,670 per month x 5 lease x 2 months (from Nov 1st to Dec 31st) =66700

$6,060 per month x 4 lease x 1 month = 24240

total 90940

advertizing:

8,400 / 12 months x 8 months expired = 5600

9,600 / 24 months x 3 months expired = 1200

total 6,800

interest on note payable:

principal x rate x time

56,200 x 12% x 7/12 = 3,934

8 0

2 years ago