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
riadik2000 [5.3K]
3 years ago
15

Suppose that the pre-tax price of gasoline is $1 per gallon. A tax of $0.50 is imposed and is paid by consumers to the governmen

t. What must the gross price of gasoline be after the tax so that the consumer tax burden is equal to the producer tax burden?
Business
1 answer:
charle [14.2K]3 years ago
7 0

Answer:

$1.25

Explanation:

Data provided in the question:

The pre-tax price of gasoline = $1 per gallon

Imposed tax per gallon = $0.50

Now,

The total tax burden on the consumer is $0.50

considering the condition that the consumer tax burden is equal to the producer tax burden

The total tax burden will be divided in equal parts to the consumer and the producer

Thus,

The equal tax burden will be = [ Total tax burden ] ÷ 2

= $0.50 ÷ 2

= $0.25

Hence,

The gross price of gasoline after the tax will be = $1 + $0.25

= $1.25

You might be interested in
You were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equ
alexgriva [62]

Answer:

A. 8.15

Explanation:

WACC is the firm's weighted average cost for the capital that is employed from different sources which includes common equity, preferred equity and debt.

In order to calculate WACC, the weighted average cost of each capital is added, so the formula becomes:

WACC = (E x %E) + (D x (1 - Tax) x %D) + (PE x %PE)

E = Common equity

D = Debt

PE = Preferred equity

%E = Common equity / total capital

%D = Debt / total capital

%PE = Preferred equity / total capital

Tax = Tax rate

<em>Interest on debt is a tax deductible expense therefore the interest rate is taken after accounting for tax in order to calculate WACC.</em>

<u>Calculation:</u>

Using the above formula we can calculate WACC

WACC = (11.25% x 55%) + (6.5% x (1-40%) x 35%) + (6% x 10%)

WACC = 0.0815 or 8.15%

7 0
3 years ago
A merit system of police employment is established when an independent civil service commission, in cooperation with the city pe
Illusion [34]

Answer:

Recruitment criteria.

Explanation:

Recruitment criteria are models used to gauge all up-and-comers and their capacity to play out a vocation. You search principally for the most ideal match between an applicant's information, aptitudes, and capacities and the prerequisites for fruitful presentation of work.

4 0
3 years ago
Major reasons for disclosure of deferred income tax information is (are)
Karolina [17]

Answer:

d. All of these answer choices are correct.

Explanation:

Is important to match the expenses with the revenues they are related. If for tax purposes we can deduct a full equipment value in one year. This means we are goung to pay higher income taxes in the future as we don't have the depreciation expense available for taxes porpuses.

The use of deferred incoem tax will be useful to knwo how much are the actual cash obligation and the expected value of the future cash obligations

6 0
3 years ago
Acquiring a government job based on political loyalty, without regard to ability, is called
umka2103 [35]
Acquiring a government job based on political loyalty, without regard to ability, is called <span>political patronage.

Hope this helps you! :-)</span>
6 0
3 years ago
how can you guarantee that your talk or speech will be interesting to your audience? Is this good advice? Why or why not? Justif
Rashid [163]
If you want to make sure it's interesting, you have to cater your speech/talk to your target audience. This is good advice. A 15-page detailed Powerpoint presentation with note cards would do as much good when presenting to kindergarteners as a water hose would do good in a flood. But, say, it was a fire, then the water hose might come in handy. In our case, your boss at the business meeting would find your Powerpoint much more interesting than kindergarteners would. 

Hope this helps! Have a nice day :)
7 0
3 years ago
Other questions:
  • Equipment loans are often tied to all of the following except:
    15·1 answer
  • Whose responsibility is it to identify credit report errors?
    13·1 answer
  • The following information is available for Sheridan Company:
    11·1 answer
  • You own a large company and would like to issue bonds for $12 million to pay for the construction of a new manufacturing facilit
    12·1 answer
  • Seema, a creative director at a marketing agency, notices that her team members often perform better while working as a team tha
    10·1 answer
  • A substitute is standing at the halfway line waiting to enter the match at the next stoppage of play. the ball has gone over the
    8·1 answer
  • Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are: M N OUnit sale
    11·1 answer
  • Five firms exist in the Liagiba industry. Their respective market shares are 35, 25, 15, 15, and 10 percent. Five firms exist in
    13·1 answer
  • High-Low Method The manufacturing costs of Rosenthal Industries for the first three months of the year follow:
    15·1 answer
  • A Empresa Comercial Ltda. apresenta um ciclo de caixa de 20 dias e efetua pagamentos anuais no montante total de R$ 180.000.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!