Answer:
"Assuming the market of soda has a regular downward sloping" demand curve and upward sloping supply curve, the tax will <u>be added to</u> the price paid by buyers and <u>not the price received by</u> the price received by sellers.
Explanation:
When demand is takes a downward slope it simply means the good is not sort after in the open market.When Supply curve takes an upward curve it means their is a great availability of production resources.
Tax incidence goes alongside the above theory,in cases where demand is low ,the tax will will be imposed on the buyer .But in the case where demand is high the tax is usually imposed on the producer.
A version is the recorded state of a particular revision of a software or hardware configuration item.
Answer: version
Answer:
See below
Explanation:
This transaction will affect the bank balance by increasing it with the check amount. The bank is cash (asset ) held in the bank. An increase in assets account is a debit. The bank A/c will be debited.
The check is received from Yogesh. Yogesh must have bought goods on credit and hence is an account receivable (asset). Since Yogesh has paid, his account decrease by the check amount. A decrease in assets is credited.
The journal entry will be
Bank A/c DR. Rs 4500
Yogesh A/c Cr. Rs 4500
Answer:
e. $ 282,000
Explanation:
To determine the assets of the company at year end, we need to find the equity at year end, this is calculated as follows:
Opening Equity $ 145,000
Net Income for the year $ 45,000
Revenues $ 210,000
Expenses $ 165,000
Equity at end of year $ 190,000
The accounting equation is
Assets = Liabilities + Stockholders' Equity
Assets = $ 92,000 + $ 190,000 $ 282,000
Answer:
e) None of the choices are correct.
Explanation:
A taxpayer can avoid a substantial underestimation of the tax penalty if there is a “reasonable cause” for the underpayment and the taxpayer performed “in good faith” with regard to the underpayment of the tax.
As IRC section 6662 forces a penalty 20% of an underpayment of tax if the underpayment is attributable to:
1. A “basic estimation error,” with other things.
2. a “substantial underestimation of income tax,” or
3. oversight or disregard of rules or regulations,
But no accuracy-related penalty implements for an underpayment if it is seen that there is “reasonable cause” for the underpayment and the taxpayer also behaved “in good faith” with regard to the underpayment of the tax.