Answer:
The correct answer is letter "D": The corporate tax rate increases.
Explanation:
In case the government decides to increase the corporate tax rates, companies will have to invest more in their production process so the output will be higher as long as the revenues so that extra profit could cushion the increase in the levies. However, <em>if companies do not have enough reserves to invest, they are likely to request loans</em> that will increment the firm's debt in the long run.
At the time of sale, Janice's adjusted basis is $405,000 computed as follows: $405,000 = $395,000 (original price) + $45,000 (for replacing old pipes and plumbing) + $34,700 (realtor's commission) + $300 (advertising) - $70,000 (depreciated amount). The amount realized is $694,000 computed as: $694,000 = $500,000 (cash paid) + $194,000 (mortgage assumed by the buyer).
Answer:
Since there is not enough room here I used an excel spreadsheet. I assumed that all sales and expenses were collected and paid in cash.
Answer:
D, floor that is binding
Explanation:
floor that is binding means that the government sets a required price that is at prive above equilibrium
E. keep detailed records of the finacial investments of the company