Answer:
$2,000 decrease.
Explanation:
Two years ago, Aggre Inc. recognized the tax benefit of an uncertain tax position. Income tax expense in that year was reduced by $20,000 as a result. In addition, Aggre recorded a $5,000 tax liability for unrecognized benefits for the same tax position. During the current year, the uncertainty is resolved and a benefit of $22,000 is upheld. The amount by which current-year income tax expense affected by the resolution of the prior uncertainty is $2000 decrease.
Answer:
47 months
Explanation:
This can be calculated using a financial calculator :
I = 18% / 12 = 1.50%
PV = -5000
PMT = 150
FV = 0
N = 47 months
Answer:
Increased government spending will be less effective for raising the Marginal Propensity to Consume.
Explanation:
The Marginal Propensity to Consume depends on disposable income, and disposable income is the money that individuals have after paying tax.
If the government increases spending, it will also increase taxes to finance spending, and if taxes are higher, people will have less disposable income, and even if their marginal propensity to consume increases, because they now have less money, the will spend less in total.
Breakeven point in units=
Fixed cost÷[selling price-variable cost]
Breakeven point in units
=750÷(3.75−1.25)
=300 units
