The primary advantage an entrepreneur gains by leasing rather than buying facilities is

Page(s) 165-166 5.3. Why do taxes create deadweight loss in otherwise efficient markets? How would the consumer notice if the go

swat32

Answer:

Explanation:

(C) The price of potato chips would rise.

8 0

3 years ago

Read 2 more answers

Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December

Delicious77 [7]

Answer:

A. Bad debt expense workings

Estimated loss =

0 - 30 days 1% of $90,000 = $900

31 - 60 days 2% of $20,000 = $400

61 - 120 days 5% of $11,000 = $550

121 - 180 days 10% of $6,000= $600

Over 180 days 25% of $4,000 = $1,000

Total Estimated loss = $3,450

Pre-adjusted bal of Uncollectible debt Account = $520

Balance to reflect in the Financial statement will be adjusted to reflect $3,450 just computed.

Addition to the Expense will be $3,450 minus $520 = $2,930

B.

Financial statement Effect template

Cash Asset = -$2,930

+

Non - Cash Asset = $0

=

Liability = $0

+

Contributed Capital = $0

+

Earned Capital -$2,930

C.

Account Receivable as at Dec 31 = $131,000

Less Allowance for uncollectible debts total = -$3,450

Balance Account receivables = $127,550

Explanation:

LaFond Company

Bad debt expense are combination of both doubtful and uncollectible debts within a financial year.

A debt becomes doubtful based on previous trends around debt collections. From the question for example 0 - 30days aged debt is doubtful of 1% uncollectibility, and 31 - 60 days aged debt is 2% etc.

A debt is written off as bad if it is adjudged to be uncollectible.

6 0

3 years ago

72% of millennials have between 0$ and $9,999 saved for their retirement so far. Why is this a potential problem?

katrin [286]

Potential problem analysis is a method where it determines that the problem that can occur in a plan during development.

Explanation:

The potential problem causes can be rated accordingly such as nature of the occurrence of the problem , their consequences, the actions for prevention that can be taken, contingency plans that are being developed.

Millennial have to save more money for retirement otherwise they will go below the poverty line due to inflation. There are many millennial who invest unwisely without knowing the proper return on investment . According to Greg McBride , the chief analyst of the Bankrate.com said that the millennial are going to have big burden in savings after retirement.

6 0

2 years ago

When servant leadership is practiced, organizational performance is positively affected because?

andre [41]

Because of subordinates go beyond the basic requirements of their job duties.
hope this helps!

4 0

3 years ago

Calculate the average and marginal tax rates in the following table. (Hint: Enter your answers as decimals and do not round when

Zigmanuir [339]

Answer:

1. a. Average Tax rate = 130/2,000 = 6.5%

Marginal Tax Rate = (130 - 0)/ (2,000 - 0) = 6.5%

b. Average Tax rate = 650/10,000 = 6.5%

Marginal Tax Rate = $\frac{650-130}{10,000-2,000}$ = 6.5%

c. Average Tax rate = 1,300/20,000 = 6.5%

Marginal Tax Rate = $\frac{1,300-650}{20,000-10,000}$ = 6.5%

d. Average Tax rate = 6,500/100,000 = 6.5%

Marginal Tax Rate = $\frac{6,500-1,300}{100,000-20,000}$ = 6.5%

2. The tax rates shown in this table are: Proportional

Proportional Taxes take the same percentage of income across all income groups.

3. A. True

4. Sean and Bob would both vote yes as the Marginal Benefit of the project exceeds their marginal cost but project will not be funded in the end as the Total Marginal Cost exceeds Total Marginal benefit. Sean and Bob may want to pay but Yvette will not.

5. If this same project were taking place in the private sector, a firm would not fund the project.

6. In private markets, decisions to provide goods or services to the market are generally made if marginal benefits exceed marginal costs

7. As a result, governments may approve projects whose costs exceed their benefits.

3 0

3 years ago