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Elden [556K]
3 years ago
13

Congress would like to increase tax revenues by 10 percent. Assume that the average taxpayer in the United States earns $65,000

and pays an average tax rate of 15 percent. a. If the income effect is in effect for all taxpayers, what average tax rate will result in a 10 percent increase in tax revenues? (Round your answer to 2 decimal places.)
Business
1 answer:
SSSSS [86.1K]3 years ago
7 0

Answer: <em><u>16.5% is the average tax rate that will result in a 10 percent increase in tax revenues.</u></em>

Explanation:

This is an example of static forecasting since no time parameter is involved.

Now,

Let initial revenue be "R" ,

"n" be no. of taxpayer

∴ R= 65000×0.15×n

R +0.1R= 65000×rate×n

Using the above two equation, we'll get ;

<u><em>r = 16.5%</em></u>

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Answer:

the file attached shows the whole explanation. I hope it helps.

Explanation:

Complete question

Compute the depreciation deductions that Hernandez, Jackson, and Twist may claim under the following assumptions. If an amount is zero, enter "0". Do not round any division. Depreciation Deductions Hernandez Jackson Twist Trust

a. Depreciation deduction allocated to corpus. Hernandez$_____ Jackson$_____ Twist Trust$_____

b. If depreciation was allocated to income. Hernandez$_____ Jackson$_____ Twist Trust$_____

c. If the trustee distributed $15,000 each to Hernandez and to Jackson and retained the remaining accounting income. Hernandez$_____ Jackson$_____ Twist Trust$_____

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Download docx
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3 years ago
Qué funcio tiene la feromonas<br>​
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Answer:

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Explanation:

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3 years ago
Brewster's is considering a project with a life of 5 years and an initial cost of $120,000. The discount rate for the project is
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Answer:

Net present value 27.792‬

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C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

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time 3 years

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42000 \times \frac{1-(1+0.12)^{-3} }{0.12} = PV\\

PV $100,876.9133

For year 4 and 5 we need to check for the expected cashflow

<u>We will multiply each outcome by their probability:</u>

1,400 units x $20 per unit x 0.5 chance =  14,000

2,500 units x $20 per unit x 0.5 chance = 25,000

expected return:    <em>39,000</em>

<u>present value of these years:</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $39,000.0000

time   4 end of year 4th

rate  0.12

\frac{39000}{(1 + 0.12)^{4} } = PV  

PV   24,785.21

\frac{Maturity}{(1 + rate)^{time} } = PV  

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rate  0.12

\frac{39000}{(1 + 0.12)^{5} } = PV  

PV   22,129.65

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100,877 + 24,785 + 22,130 - 120,000 = 27.792‬

7 0
3 years ago
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