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3 years ago

What determines how the burden of tax is divided between buyers and sellers? Why?

Business

2 answers:

Artemon [7]3 years ago

6 0

Answer:

Explanation:

Taxation is the means by which the government gets most of its revenue so it is the duties of private or publicly owned organizations and also the citizen to pay their taxes used by the government to fund all its projects. the taxes generated by the government are then divided among buyers and sellers.

The elasticity of demand is the main determinant of how burden of tax is divided between buyers and sellers.

velikii [3]3 years ago

6 0

Answer:

The elasticity of demand and the elasticity of supply decides how the tax burden is divided among the supplier and the customer.

Explanation:

Elasticity refers to how sensitive the demand or the supply is comparatively to relative changes in the price. This is the major factor that decides the change in the demand and supply once the price increases as a result of the taxes.

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Which of the following is a true statement about a request for a change in accounting method?A. Some requests are automatically

fiasKO [112]

Answer: (E) All of these options are true

Explanation:

The change in the accounting method is the process of changing the overall plan of the accounting in terms of gross income and the cash deduction. It is also change the material item in terms of treatment.

The form 3115 is one of the application that required in the accounting method. This application is filed with the proper request to the IRS to change the accounting method. The IRS basically provide the automatic procedure for obtain the automatic consent for changing the method.

Therefore, Option (E) is correct.

6 0

3 years ago

A company uses straight line depreciation for an item of equipment that cost $12000, had a salvage value of $2,000 and a five ye

timurjin [86]

Answer:

option (d) 2400

Explanation:

Data provided in the question:

Initial book value = $12,000

Salvage value = $2000

Useful life = 5 years

Thus,

Using the straight line method of depreciation

Annual depreciation = [Cost - Salvage value] ÷ Useful life

= [ $12,000 - $2,000 ] ÷ 5

= $2,000

Accumulated Depreciation for 3 years

= Annual depreciation × Time

= $2,000 × 3

= $6,000

Book value after 3 years = Cost - Accumulated depreciation

= $12,000 - $6,000

= $6,000

Remaining useful life = 2 years

Reduced Salvage value after 3 years = $1,200

Therefore,

Depreciable value of the Asset = Book value - Reduced salvage value

= $6,000 - $1,200

= $4,800

Revised depreciation to be charged every year

= Depreciable value of the Asset ÷ (Remaining useful life)

= $4,800 ÷ 2

= $2,400

Hence,

The correct answer is option (d) 2400

4 0

3 years ago

56) What is the coupon payment of a 25-year $1000 bond with a 4.5% coupon rate with quarterly payments? A) $3.75 B) $11.25 C) $2

elena55 [62]

Answer:

Quarterly interest payment= $11.25

Explanation:

The coupon rate is the proportion of the nominal value of a bond that is paid as interest . This proportion is always as a quoted as percentage . And the payment can be made annually, semi-annually or even quarterly

Here the quarterly payment implies that the investor would receive the interest payment every three months

Annual Interest payment = coupon rate × nominal value

= 4.5% × 1,000 = 45

Quarterly interest payment = 45 × 3/12 = 11.25

Quarterly interest payment= $11.25

3 0

3 years ago

Nicoula is a server at a La Jolla restaurant. Nicoula received $1,200 in unreported tips during 2016 and owes Social

lubasha [3.4K]

Answer:

Yes. Nicoula is required to pay tax including the tips

Explanation:

Since Nicoula received $1,200 in unreported tips during 2016 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including the tips, is $4,300.

Nicoula is required to pay an income tax return for 2016 because Tips are considered to be part of employee wages and or salaries, hence employers are required by law to withhold and pay to the IRS payroll taxes on the tips employees report to them each month.

It is mandatory to report on the tax return, the amount of any Social Security and Medicare taxes Nicoula has failed to pay on her 'tip income'.

5 0

3 years ago

The cost of equipment purchased by Sheridan, Inc., on June 1, 2020, is $107,100. It is estimated that the machine will have a $6

NikAS [45]

Answer:

(a) Straight-line

depreciable value = $107,100 - $6,300 = $100,800

depreciation expense per year = $100,800 / 7 = $14,400

depreciation expense 2020 = $14,400

depreciation expense 2021 = $14,400

(b) Units-of-output

depreciable value = $107,100 - $6,300 = $100,800

depreciation expense per unit = $100,800 / 630,000 = $0.16

depreciation expense 2020 = $0.16 x 59,400 = $9,504

depreciation expense 2021 = $0.16 x 51,800 = $8,288

depreciable value = $107,100 - $6,300 = $100,800

depreciation expense per working hour = $100,800 / 50,400 = $2

depreciation expense 2020 = $2 x 6,480 = $12,960

depreciation expense 2021 = $2 x 5,940 = $11,880

(d) Sum-of-the-years' digits

depreciable value = $107,100 - $6,300 = $100,800

depreciation expense 2020 = $100,800 x 7/28 = $25,200

depreciation expense 2021 = $100,800 x 6/28 = $21,600

(e) Double-declining-balance (twice the straight-line rate)

depreciation expense 2020 = $100,800 x 2/7 = $28,800

depreciation expense 2021 = $72,000 x 2/7 = $20,571

6 0

3 years ago