Answer:
Tax carried forward to consumer $2
Effective tax on the producers $ 1
TRUE
As the nominal tax is always subject to elasticity in demand and supply which generates an effective tax burden on each party.
Explanation:
<em><u>Before-tax:</u></em>
Quantity 25
Price $7
<em><u>After-tax:</u></em>
Quantity 18
Price $8
The producer receives $5 (thus there has been a tax of $3)
The tax-burden (who actually pay the tax)
is based on the elasticity of the demand and supply of the market.
When demand is more inelastic the tax burden goes into the consumer more than producers.
When supply is more inelastic the tax burden goes into the producer more than consumers.
The index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
Given that the index method of cost estimation is given by an=ck(in/ik).
We are required to give the time or situation in which we have to use index method to determine the cost.
A cost index is basically a ratio of the cost of something today to its cost at some time in the past. As such, it is a tool which is used to estimate the cost of things today based on their cost some time ago.
From the definition of cost index we can say that the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past. This method is basically used in statistical or economics departments of the government of a country.
Hence the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
Learn more about index method at brainly.com/question/28016640
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Answer:
Implicit tax rate = 0.1778 or 17.78 %
Explanation:
given data
municipal bond = 1.48% = 0.0148
corporate bonds = 1.80% = 0.0180
solution
we get here Implicit tax rate that is express as
Implicit tax rate = ( corporate bonds - municipal bond ) ÷ corporate bonds ........................1
put here vale and we will get
Implicit tax rate =
solve it we get
Implicit tax rate = 0.1778 or 17.78 %
Answer:
C. $0
Explanation:
Data provided in the question
Purchase value of the bond = $30,000
And, the market value of the investment at the ending year is $29,000
So by considering the above information, the $0 would be reported in the net income as only realized gains are transferred to the income statement
While the unrealized gain or loss on available for sale securities transferred to Comprehensive income statement and accumulated amount goes to Balance Sheet as a Accumulated Other Comprehensive Income
Answer: $198,515.29, $207,693.20, $209,903.91
Explanation:
Interest calculations:
1. Compounded annually
= A=50,000(1+0.09)^16
A= 50,000(1.09)^16
A=50,000(3.97030588)
A= $198,515.29
2. Compounded quarterly
= A=50,000(1+0.09/4)^16*4
=A= 50,000(1.0225)^64
A=50,000(4.15386394)
A= $207,693.20
3. Compounded monthly
=A=50,000(1+0.09/12)^16*12
A= 50,000(1+0.0075)^192
A=50,000(4.1980781995)
A= $209,903.91