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3 years ago

On which group will a progressive tax place a greater tax burden?

2 answers:

5 0

Poor citizens will be greatly affected by a increase in taxes,nobody takes into account there day to day living,rent,utilities,food and that's just to name a few.

Mama L [17]3 years ago

5 0

Answer:

The answer is D. Wealthy citizens

Explanation:

aced the test

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A machine cost $1,238,000 on April 1, 2020. Its estimated salvage value is $139,200 and its expected life is 4 years. Calculate

natulia [17]

Answer:

The depreciation expense by straight-line for 2020: $206,025
The depreciation expense by double-declining balance for 2021: $619,000
The depreciation expense by sum-of-the-years'-digits for 2021: $329,640

Explanation:

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($1,238,000 - $139,200) / 4 years = $274,700 yearly depreciation expense.

Depreciation expense by straight-line for 2020 will be (April 1, 2020 - Dec. 31, 2020): $274,700 / 12 x 9 = $206,025.

The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

SLDP is 100%/4 years = 25%, then 25% multiplied by 2 to give 50% or simply 1/2

Depreciation expense under double-declining method at December 31, 2021: $1,238,000 x 1/2 = $619,000

Under the sum-of-the-years'-digits, the depreciation expense for 2021 will be calculated as follows: 3 / 10 = 30%.

10 was derived by 4 + 3 + 2 + 1 for Year 2020, 2021, etc

($1,238,000 - $139,200) x 30% = $329,640

4 0

3 years ago

First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest

Anarel [89]

Answer:

$14,343.25

Explanation:

First city bank pays 8% simple interest in a savings account

Second city bank pays 8% interest compounded annually

$68,000 is deposited deposited in each of the bank

The first step is to calculate the simple interesr per year of first city bank

= principal × rate

= 68,000 × 8/100

= 68,000 × 0.08

= 5,440

The interest earned for the period of 8 years can be calculated as follows.

= 5,440 × 8

= 43,520

The balance at the end of 8 years can be calculated as follows

= 68,000 + 43,520

= 111,520

The next step is to calculate the future value of second city bank

= principal × (1+R)^n

= 68,000 × (1+8%)^8

= 68,000 × (1+0.08)^8

= 68,000 × 1.08^8

= 68,000 × 1.85093021

= 125,863.25

Therefore the amount of money earned from second city bank at the end of 8 years can be calculated as follows

= 125,863.25-111,520

= 14343.25

Hence the money that was earned from second city bank at the end of 8 years is $14,343.25

8 0

3 years ago

West Corp. issued 25-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bond

slava [35]

Answer:

4.93%

Explanation:

We use the Rate formula shown in the spreadsheet for this question

The time period is represented in the NPER.

Provided that,

Present value = $1,000 × 105% = $1,050

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 5.3% ÷ 2 = $26.5

NPER = 25 years - 2 years = 23 years × 2 = 46 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the yield to maturity is 4.93%

6 0

3 years ago

Assume the money supply is $500, the velocity of money is 8, and the price level is $2. Using the quantity theory of money:

LiRa [457]

Answer:

a) 2000

b) 4000

c) 2000 and 4800

Explanation:

The quantitative theory of money shows how the monetary side of an economy behaves, that is, the effect of money supply on income. It is given by the equation MV = PY, where M = money supply, V is the currency's velocity, P is the price level and Y is the real income level.

M = 500, V = 8, P = 2

a) The real income level:

MV = PY

500 x 8 = 2 x Y

Y = 2000

b) Nominal income level (price level multiplied by real income)

2 x 2000 = 4000

C) If the money supply increases by 20%, ie to 600, the real income will be:

MV = PY

600 x 8 = 2.4 x Y (Y is full employment income, so the effects of money supply will be on the price level)

Y = 2000 Real income remains the same, increase in money supply does not affect real output, only price level, which increases from 2 to 2.4.

The nominal income, in turn, will be:

2.4 x 2000 = 4800

That is, an increase in the money supply only increases nominal income.

3 0

3 years ago

Acme Products manufactures and markets a product called Grow Tall. Acme claims in its advertising that Grow Tall will make its u

adoni [48]

Answer: a. deceptive, and the FTC may issue a cease-and-desist order.

Explanation:

A product that can increase human height by 6 inches sounds highly improbable and so is deceptive to people.

The Federal Trade Commission in it's role as a protector of Consumers from.unfair and deceitful practices in Commerce can act against Acme to stop them from deceiving the consumer.

One of the ways that the FTC can do this is by issuing a Cease and Desist order to Acme and if they fail to do so, can then take them to Court.

8 0

3 years ago