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V125BC [204]
3 years ago
13

In the recent years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. A recent article in

the Wall Street Journal states that Chinese authorities are concerned that escalating prices will cause inflation and be followed by civil unrest. (Source: Wall Street Journal, February 20, 2011) If the Chinese government sets a price ceiling below the equilibrium price, the result will be I. an increase in the quantity demanded. II. a decrease in the quantity supplied. III. a shortage.
Business
1 answer:
TiliK225 [7]3 years ago
6 0

Answer:

I, II and III.

Explanation:

Price ceiling refers to the price control policy that is used by the government to protect the customers who are not able afford goods at the prevailing price.

If government of a nation sets a price ceiling below the equilibrium price level then this will increase the quantity demanded for the product because now goods become more affordable to the consumers and decreases the quantity supplied because it will become less profitable for the producers.

Hence, the demand for goods exceeds the supply of goods, this will create a shortage of goods in an economy.

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Problem 5-24 (Algorithmic) (LO. 1, 4) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumula
Nitella [24]

Answer:

Explanation:

Pam and Jon's dividend income of $134,500 each [($185,000 Accumulated E&P + $111,000 current E&P) / 2],

Statement of distribution for shareholders for tax purpose :-

                                  Pam      Jon

Total distribution $185,000 $185,000

less: Dividend income $134,500 $134,500

<em>                                      $50,500 $50,500</em>

less : Stock basis $25,900 $103,600

Capital gain          $24,600 $0

Pam has a taxable gain of $24,600 which reduces the stock basis to $0, whereas Jon has not any taxable gain but the stock basis has reduced to $53,100 [$103,600- $50,500]

5 0
3 years ago
Leonardo, who is married but files separately, earns $90,000 of taxable income. He also has $8,750 in city of Tulsa bonds. His w
UkoKoshka [18]

Answer: 17.56%

Explanation:

Given that,

Leonardo taxable income = $90,000

Tulsa bonds = $8,750

Theresa taxable income = $50,000

Computation of Leonardo's Tax:

According to the tax rate schedule,

Total Tax = Tax + 24% of taxable income over $82,500

                = $14,089.50 + 24% × $7,500

                = $14,089.50 + $1,800

                = $15,889.5

Computation of Theresa's Tax:

According to the tax rate schedule,

Total Tax = Tax + 22% of taxable income over $38,700

                = $4453.50 + 22% × $11,300

                = $4453.50 + $2,486

                = $6939.5

Total tax on Leonardo's income and Theresa's income:

= $15,889.5 + $6939.5

= $22,829

Effective tax rate = \frac{Total\ Tax}{Total\ Taxable\ Income}\times100

                              = \frac{22,829}{130,000}\times100

                              = 17.56%

5 0
3 years ago
The company estimates future uncollectible accounts. The company determines $4,400 of accounts receivable on January 31 are past
Salsk061 [2.6K]

Answer:

Journal entry

Explanation:

Before passing the journal entry we need to do the following calculations

Uncollected amount is

= $4,400 × 50%

= $2,200

Uncollected amount is

= ($4,400 - $2,200) × 0.03

= $2,200 × 0.03

= $66

So, the total amount is

= $2,200 + $66

= $2,266

Now the journal entry is

Bad debt expense $2,266

        To Allowance for uncollectible accounts $2,266

(Being the uncollectible account is recorded)

4 0
3 years ago
If food makes up about 15% of total expenditure of the country, and if the food prices rise by 10%, while other components of th
omeli [17]

Answer:

c. 1.5%

Explanation:

Food as total Expenditure of Country = 15%

Food's Price rise = 10%

while other components of the price index remain constant price index rise will be calculated as follows:

Price index rise = 15% x 10%

Price index rise = 0.15 x 0.1

Price index rise = 0.015

Price index rise =1.5%

So the correct option is c. 1.5%

7 0
3 years ago
In an hour, Henry can wash 20 windows or clean 2 bath tubs. In an hour, Rose can wash 30 windows or clean one bath tub. If their
marysya [2.9K]

If their father Dave allows them to trade chores to achieve gains from trade then "Henry will clean bath tubs; Rose will wash the windows".

<u>Option: C</u>

<u>Explanation:</u>

In this scenario Henry is washing 20 windows or 2 bath tabs in an hour, which showcase his average washing of 10 windows over 1 bath tab in half hour. While here Rose is washing 30 windows or 1 bath tab in an hour by giving average of 15 windows over half bath tab in half hour, which is less than Henry's average of washing.

Thus on considering the above average of work performed by Henry and Rose in equal amount of given time for work, Henry is more prominent to be specialized in cleaning bath tubs while Rose will more expert in washing windows because she is cleaning more windows than Henry in same on hour of time.

6 0
3 years ago
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