<em>In a firm's income statement, interest payments on debt are deducted </em><em>before </em><em>corporate taxes are calculated, which</em><em> reduces</em><em> the firm's tax liability.</em>
<h3>Income statement: What is it?</h3>
An overview of the company's operations for a specific time period is provided in the income statement. The revenue (gross and net sales), cost of products sold, operational expenditures (selling and general and administrative expenses), taxes, and net profit or loss are the statement's primary components.
<h3>What is displayed on a firm's income statement?</h3>
The statement logically and coherently presents the company's revenue, costs, gross profit, selling and administrative expenses, other expenses and income, taxes paid, and net profit.
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Answer:
a. An increase in government spending increases interest rates, causing investment to fall.
Explanation:
Crowding out occurs when increased government spending backfires and has a negative impact in the private sector due to the increase in interest rates, which are pivotal in the decision-making process of private investments. A high intensity crowding out may even lead to a negative overall impact in the economy. Therefore, the answer is alternative a.
Answer:
m=$10
Explanation:
money spent on organic fruit=2×$7.5= $15.0
money left=$75-$15=$60
she bought 6 lbs of organic vegetables,
.: money spent on each lb of vegetable × 6 = $60
m × 6 = $60
m = $60/6
m= $10
Answer:
a. What is the amount and character of Kimberly's recognized gain or loss on the distribution?
Kimberly's capital gain = land's FMV - other land's FMV = $22,675 - $19,850 = $2,825
b. What is Kimberly’s remaining basis in KST after the distribution?
Kimberly's basis = basis + gain - land basis = $18,300 + $2,825 - $15,575 = $5,550
c. What is KST's basis in the land Kimberly contributed after Kimberly receives the distribution?
KST's basis on the land = land's basis + Kimberly's gain = $12,750 + $2,825 = $15,575
