1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
love history [14]
4 years ago
10

Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 10 billion bottles of wine were sold ev

ery year at a price of $4 per bottle. After the tax, 3 billion bottles of wine are sold every year; consumers pay $5 per bottle (including the tax), and producers receive $2 per bottle. The amount of the tax on a bottle of wine isper bottle. Of this amount, the burden that falls on consumers isper bottle, and the burden that falls on producers isper bottle.
Business
2 answers:
Ugo [173]4 years ago
8 0

Answer:

(a) $3 per bottle

(b) $1

(c) $2

Explanation:

Given that,

Before the tax:

10 billion bottles of wine were sold every year at a price of $4 per bottle.

After the tax:

3 billion bottles of wine are sold every year. For which, consumers pay $5 per bottle (including the tax) and producers receive $2 per bottle.

Amount of the tax on a bottle of wine:

= price after tax paid by consumer - price after tax received by producer

= $5 - $2

= $3 per bottle

Burden that falls on consumers:

= Paid after tax - Paid before tax

= $5 - $4

= $1

Burden that falls on producers:

= Received before tax - Received after tax

= $4 - $2

= $2

hjlf4 years ago
8 0

Answer:

The amount of tax per bottle of wine = Rs 3 ; Tax burden on consumers = Re 1 ; Tax burden on producers = Rs 2

Explanation:

The per unit tax illustrated in the question is a case of Indirect Tax. Indirect Tax is a tax whose incidence & impact lie on different people & the burden can be shared between buyers & sellers.

When an indirect tax is applied : the burden is either borne by producers,  or is borne by consumers in form of price rise. As after tax, price rise by : Rs 5 - Rs 4 = Re 1 depict tax burden share on consumers. Also after tax, reduction in sale receipt fall by  : Rs 4 -Rs 2 = Rs 2 depict the tax burden on producers.

So: Total Tax Burden = Rs 3 ; as summation of tax burden borne by producers & consumers = Rs 2 & Re 1 respectively.

You might be interested in
Min applies for a job as a receptionist at an accounting firm. If she is denied a job because she is of Asian origin, she may be
Likurg_2 [28]

Answer:

Option C is the correct answer.

Explanation:

What do we understand by disparate-treatment discrimination?

It simply refers to an act of unequal behavior towards someone because of some existing prejudices in the mind of those that commit the act. These prejudices could include false believes about the person coming in. For example a stereotype about being Asian or probably, one about being a female. So what this means is that this act is committed when an unequal behavior is shown to a person because of some characteristics possessed by the person for example gender-based or demographic considerations.

Important to note is that this act is illegal. Since it is illegal, a person feeling he had been a victim could get a court to preside over his/her issues with the said person

6 0
3 years ago
Read 2 more answers
During periods of decreasing costs, the use of the LIFO method of costing inventory will result in a lower amount of net income
gladu [14]

Answer:

b. False

Explanation:

LIFO stand for Last in First Out. This means LIFO inventory valuation is based on earlier goods purchased.

So, when costs are decreasing, they are affecting latter prices and this usually affect FIFO (First in First Out) not LIFO.

7 0
3 years ago
Tamara is 52 years old and her divorce became final on September 20, 2014 and has not been modified. The divorce decree stipulat
never [62]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0
3 years ago
Higgins Company plans to incur $380,000 of salaries expense if a capital project is implemented. Assuming a 40% tax rate, the sa
AlexFokin [52]

Answer:

d) $228,000 outflow

Explanation:

Calculation for the amount that the salaries should be reflected in the analysis

Using this formula

Salaries=Salaries expense-(Salaries expense*Tax rate)

Let plug in the formula

Salaries=$380,000-($380,000*40%)

Salaries=$380,000-$152,000

Salaries=$228,000 Outflow

Therefore salaries should be reflected in the analysis by a: $228,000 outflow

8 0
3 years ago
On September 30, Year 1, Payne, Inc. exchanged some of its shares for all of the common stock of Salem, Inc. in a business combi
MrRissso [65]

Answer:

Payne should exclude Salem's January 1, Year 1, Retained Earnings and income for January 1 to September 30 from consolidated Retained Earnings and consolidated income

Explanation:

The Retained Earnings of Salem on January 1, Year 1 and and its income during the period between January 1 and September 30 would not be included in the Year 1  consolidated financial statements.

The reason is that The Retained Earnings of Salem on January 1, Year 1 and and its income during the period between January 1 and September 30 are part of the equity of the shareholders that that Payne acquired on September 30, Year 1. They would then be eliminated in the eliminating entry of the consolidating investment.

6 0
3 years ago
Other questions:
  • FICO is a credit score.<br><br> True<br> False
    12·1 answer
  • (q.d) have you been an appointee or employee of any regulator at any point over the past two years?
    9·1 answer
  • Customer service is the __ a business takes to satisy customers.
    6·1 answer
  • Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year an
    5·1 answer
  • GKM, Inc. is a manufacturer of furniture. At the beginning of​ February, it was estimated that each unit of Let the Light In wou
    11·1 answer
  • Sandpiper Company reported the following year-end amounts: Beginning Inventory $22,950 Net Cost of Purchases 101,250 Ending Inve
    6·1 answer
  • As a new investment adviser (IA) firm, your company wants to obtain more clients. In an attempt to do so, one of the employees s
    7·1 answer
  • Walkane Juices is planning to launch a line of flavored beverages. It encourages consumers to take a $1,000,000 Taste Challenge.
    15·1 answer
  • What is penetration pricing?
    12·1 answer
  • Three individuals, Mary, Jack and Helen, make up the total demand for donuts per month in a particular market.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!