A reduction in retained earnings of $2,950,000.
$37(500,000 x .14) = &2,590,000
Answer:
The answer is option C. She may immediately sell the bonds but it is unclear how much money they will sell for.
Explanation:
She may immediately sell the bonds but it is unclear how much money they will sell for.
Investors who hold onto their bonds until maturity are assured of to receive the face value of the bond. In our case, if Andrea would have chosen to hold her $5,000 bond investment for 10 years, she would have been assured the bonds face value, however since she prefers to use the cash to work abroad, she can sell the bonds immediately.
Selling a bond before it's maturity date can either be beneficial or detrimental. This depends on the value of the bond at the time of sale. If at the time of sale the bond would have gained value, then the bond will sell at a higher price than when it was bought. On the other hand, if the bond at the time of sale has lost value, then the bond will sell at a lower price than the price which it was bought.
In our case, the best option for Andrea would be to sell the bonds immediately, since she really needs the cash. If it happens that at the point at which she sells the bonds they will have gained value, then she will have more than $5,000 cash, however, if at the point she decides to sell the bonds they will have lost value, then she will have less than $5,000 depending on how much value was lost from the time she bought the bonds and the time she sold the bonds.
Answer:
U.S. Tax Burden on Cola:
The amount of the tax on a case of cola is $4 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is ___$3______ per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
a. True
b. False
Explanation:
The tax burden on consumers, which is represented by the difference in the price of cola from $5 to $6 per unit is $1 ($6 - $5). However, the cash received by producers reduced by $3 from $5 to $2. This shows that the total tax burden on both consumers and producers is $4 ($1 + $3).
This represents a total tax burden of $4 or about 67% based on the new selling price of cola or 80% based on the old selling price of cola.
"The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers alone. This because the price of cola would have increased to $9 per unit. Since the demand for cola in this instance is elastic, this change in price would have caused a more than 80% change in the quantity demanded.
The answer is c. Corporate taxes
food bank because they used a soup kitchen during the Great depression and it's for the homeless people too it has to be program
