C = 50 + 0.8Y is the consumption function that is consistent with the provided data. The MPC is determined by subtracting the change in consumption from the change in disposable income, which equals 160/200, or 0.8.
Marginal propensity calculation.
$200 billion less $0 billion equals $200 billion in changes to disposable income.
Consumption change equals $210 minus $50, or $160 billion.
MPC = Change in Consumption/Change in Disposable Income, which equals $160 billion/$200 billion and is equal to 0.8.
There is a 0.8 marginal tendency to consume.
Step 2
This is how consumption function is defined.
C = a + bY
Where,
a = Consumption at zero income level
b = MPC
In given case,
$50 billion would be consumed at a level of income zero.
MPC is 0.8
So,
C = 50 + 0.8Y is the consumption function that matches the provided data.
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a house, duh, clothing can be hung and stored, potato chips are bagged, a magazine is almost useless, but a house needs plants trimmmed and rooms cleaned and taking care of bugs and such
Answer:
The corporation's tax liability is $ 228,820.
Explanation:
To calculate tax liability we first have to find net profit. Detail calculation is given below.
<u><em>Net profit Calculation</em></u>
Sales $ 3,130,000
cost of goods sold and the operating expenses ($ 2,080,000)
Interest expense ( $ 377,000)
Net profit $ 673,000
<u><em>Tax liability Calculation</em></u>
Income fall under Tax bracket of 34% ($75,001 to $10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.
Tax liabilty = 673,000 * 34% = $ 228,820
The necessary journal entries for October month are attached below in the image :
<h3>What do you mean by journal entries?</h3>
All company transactions are documented in journal entries. Generally speaking, a transaction is any financial activity that has an effect on a business.
All the necessary journal entries are attached below:
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