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garri49 [273]
3 years ago
15

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

vernment decided to levy a new $2 tax on potato chips?
(A) There would be no change in price and the consumer would not notice.
(B) Consumers would pay the same price for potato chips, but would notice the $2 tax at the register.
(C) The price of potato chips would rise.
(D) The government would tax individuals who bought too many potato chips.
Business
2 answers:
swat323 years ago
8 0

Answer:

Explanation:

(C) The price of potato chips would rise.

Mashcka [7]3 years ago
3 0

Answer:

The taxes lead to a increase in prices, so it leads to fewer people buying the product, which creates deadweight loss.

(C) The price of potato chips would rise.

Explanation:

The taxes lead to a increase in prices, so it leads to fewer people buying the product, which creates deadweight loss.

So the correct answer is:

(C) The price of potato chips would rise.

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Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses
svet-max [94.6K]

Answer:

a) Solano gets bonus of $10,800

b) Debit Cash $27,000, Jenkin's and Lacey's Capital Accounts for $5,400 each and Credit Solano Capital A/c $37,800

c) Solano gets the bonus because he brings experise and skills that are deemed useful to the partnership

Explanation:

FIrst, the completion of the question as follows:

A)Determine the recipient and the amount of the partner bonus

B) Provide the journal entry to admid Solano into the partnership

c) Why would a bonus be paid in this situation

solution

A) The first step is to determine the new partnership capital based on teh admission of Solano

= Existing Capital for the partnership = $43,000 + $56,000 = $99,000

New Paid in Capiital to Admit Solano = $99,000 + $27,000 = $126,000

The next step is to determine Solano's capital account as follows:

Solano is getting 30% share in the partnership

Therefore,

Paid in Capital = $126,000

Solano's Share of teh Partnership = 30%

Solano's capital = $126,000 x 30% = $37,800

The next step is to determine the calucation of the bonus

Solano invested 27,000 for capital of $37,800. The difference is $10,800 and this becomes the bonus

Actually bonus = $27,000 - $37,800 = -10,800

The existing partners will then share this according to their 50:50 sharing ratio

As such Jenkin's Share of Bonus = 50% x 10,800 = -5,400

Lacey = 50% x 10,800 = -5,400

Finally, since Solano had invested an amount thta is less than the book value of the share of partnership he got, the negative bonus of -10,800 calculated will be adjusted in capital account of the old partners and Solano will receive the bonus amount of -10,800

B) Journal Entry for Admission of Solano

Description                    Debit   Credit

Cash                              27,000

Jenkin's Capital  A/c      5,400

Lackey's Capital A/c      5,400

Solano's Capital A/c                   37,800

Being the Admission of Solano into the Partnership Business

c) The bonus being paid to Solano is because Solano is bringing in expertise in areas of landscape designs, cost setimates and rendering and these are useful and advantageous to the business.

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3 years ago
According to the trait approach to leadership, a(n) ___leader overcomes obstacles, makes decisions despite uncertainty, and inst
Vladimir79 [104]

Answer:

the answer is self-confident

7 0
3 years ago
Flint Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capac
ddd [48]

Answer:

Please see the answers below:

Explanation:

1.

Debit: Equipment         $912,000

Credit: Notes Payable                 $912,000

To record purchase of equipment at zero interest bearing note Central Michigan.

2.

Debit: Notes Payable        $182,400

Debit: Interest Payable      $20,064

Credit: Cash                                     $202,464

To record Cash Payment of 1st year Installment and Interest.

3.

Debit: Notes Payable        $182,400

Debit: Interest Payable      $20,064

Credit: Cash                                     $202,464

To record Cash Payment of 2nd year Installment and Interest.

4.

Debit: Depreciation Expense          $91,200

Credit: Accumulated Depreciation               $91,200

To record Depreciation Expense on Equipment over the life of 10 years with no salvage value. (Straight Line Depreciation is employed).

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Gala2k [10]

Answer:

The correct word for the blank space is: Shareholders.

Explanation:

A Shareholder is a person company or other entity that owns at least one share of company stock. Another word for <em>shareholder </em>is <em>stockholder</em>. When a shareholder buys a company stock provide them with funds to run and grow a business. The government is in charge of providing regulations to promote a safe environment in the market to promote investments from stockholders.

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3 years ago
A person shuts off the lights before leaving a room. This is an example of
Alenkinab [10]
Conserving energy because he used less energy than he needed and was saved to doing something else in the world! :D
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