Answer:
A) company HD pays less in Tax
Explanation:
Because interest is deducted before tax in income statement. Higher interest means less Earning before tax, and less amount of Tax be deducted.
HD and LD both have same Earning before interest and tax.
Let suppose both have EBIT of $1000,
Not HD has interest expense of 150, and LD has interest expense of $100
Now HD Earning before tax would be 850, and LD EBT would be 900.
Let's say tax is 40%
so,
HD tax would be 850*0.4=340
LD tax would be 900*0.4=360
So, HD pays higher interest, it benefit company in paying lower tax amount. bacause interest is tax saving.
HD saves $20 in this hypothetical example.
ANSWER: Dependent Variable
EXPLANATION : Studying variables cause - effect relationship is an important part of Economics. Ex : Law of demand - price & demand relationship , Law of Diminishing Marginal Utility - quantity & utility relationship.
The relationships are determined in 'functional forms' with usually dependent variable on the left side & independent variable on the right side .
Dependent Variable is the one being affected by independent variable , independent variable impacts dependent variable .
Eg : Micro Economics 'Law of demand' implies price inverse impact on demand , price increase - demand decrease , price decrease - demand increase.
So demand function is : Qd = A - bP ; where Qd & P are quantity demanded & price , A is autonomous demand , -b is change in demand due to change in price (negative because of inverse relationship)
Similarly Macro Economics 'Consumption Function' reflecting positive relationship of Income on Consumption is :
C = A + bY
Both the illustrations have shown how dependent variables - Demand & Income are on left side of the Function .
Answer:
The usefulness of the magazine
Explanation:
A primary factor that determines or affect the demand of a particular finished product or service is the amount of satisfaction that the customer (consumer) will derive from the use of such products or services.
This ultimately implies that, the utility or usefulness of a product or service determines whether or not it will be demanded by the consumers.
Hence, the demand for a consumer magazine is affected by the usefulness of the magazine. A consumer is most likely to buy a magazine only if it has informations that interest him or her i.e usefulness.
Answer:
Deferred tax liability = $26,000,000
Explanation:
The deferred tax liability is calculated at the tax rate of 40% on the future taxable income:
Deferred tax liability = $104,000,000*25%
Deferred tax liability = $26,000,000
Thus, $260,00,000 is the deferred tax asset or liability amount to be reported in the balance sheet as current or long term.
The measures that change in prices of a basket of goods and services in a given year include option D: inflation.
<h3>
What do you mean by term Inflation?</h3>
The term inflation is defined as the rise in the prices of goods and services in an economy.
The average change over time in the prices paid by urban consumers for a market basket goods and services of consumer is measured by the consumer price index.
Therefore, correct option is D.
Learn more about inflation, refer to the link:
brainly.com/question/15692461
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