All categories

4 years ago

The effect of a change in tax rates:

Business

1 answer:

prisoha [69]4 years ago

5 0

Answer:

d. Is reflected in income from continuing operations.

Explanation:

Taxes are defined as the amount that is levied by a government on its citizens, the funds are used to fund government expenditure.

When a business's tax rate increases the extra cost that results will be recognised as an expense in the income from operations.

On the other hand when tax rate is reduced it will result in increased income for the business.

Tax is one of the factors businesses consider when setting up operations. Locations with low tax rates are more favoured as they result in higher income.

You might be interested in

Meteor Tie Company produces ties from fabric according to Q = 10 + 4 F – (1/3) F 3. If fabric is free and ties sell for $20, wha

Leya [2.2K]

Answer:

The optimal usage of fabric = 2

Explanation:

Given the quantity, Q = 10 + 4F - (1/3) F^3

Selling price = $20

Profit = TR - TC

There is no variable cost and let the fixed cost is constant G.

Profit = PQ - G

Profit = 20(10 + 4F − (1/3)F^3)) - G = 0

Now take the first order derivative:

d(profit) / dF = 0

20(4 - F^2) = 0

F = 2

Therefore the optimal usage of fabric = 2

8 0

3 years ago

6. A company estimates that .6% of its products will fail after the original warranty period but within a 5-year warranty period

Nitella [24]

Answer:

The answer is: $57.30

Explanation:

To determine the expected value of each warranty policy that was sold, we can use the following formula:

expected value = policy price - (probability of failure x cost of replacement)

expected value = $60 - (0.6% x $450)

expected value = $60 - $2.70 = $57.30

4 0

3 years ago

In January of the current year, Stan Signowski's U.S. employer assigned him to their Paris office. This year, he earned salary,

elixir [45]

Answer:

Stan appears to satisfy the basic Sec. 911 exclusion requirements for his year of arrival since he will be physically present in France for at least 330 days during his year of arrival. The actual number days for which the exclusion can be claimed depends on the length of time he spent in the United States. The salary, cost-of-living allowance, housing allowance, home leave allowance, and education allowance all are excludable up to the Sec. 911 limitation (calculated on a daily basis). In addition, Stan can claim an exclusion for the housing cost amount minus the base amount (calculated on a daily basis). Both exclusions are denied for the portion of Stan's salary and allowances attributable to his time in the United States. The portion of his employment-related expenses and foreign taxes attributable to the excluded income are unable to be deducted or credited. The foreign-earned income exclusion and housing cost amount exclusion are both elected by claiming such amounts on Form 2555.

Not knowing the amount of the foreign income taxes, and other components of Stan's tax return, it is impossible to know whether Stan should elect out of the Sec. 911 exclusion. Stan may have spent sufficient number of days in the United States on his trip home to need to qualify for the foreign-earned income exclusion under the bona fide foreign resident rules. In such case, he will not qualify for the exclusion until the end of this second calendar year in France. The exclusion would then be available retroactively back to the date on which he established foreign residency status.

Explanation:

5 0

3 years ago

You invest in a piece of equipment costing $40,000. The equipment will be used for two years, and it will be worth $15,000 at th

inna [77]

Answer:

The answer is given below;

Explanation:

Description 0 1 2

Equipment (40,000)

Depreciation

(40,000/10,000)*4,000 (16,000)

(40,000/10,000)*6,000 (24,000)

Savings 28,000 40,000

Salvage Value 15,000

Net Cash flows 12,000 31,000

PV factor 1/1.1 =.91 1/1.1^2=.83

Net present value

PV factor*net cash flows 10,920 25,730

(10,920+25,730) 36,650

Net present value (40,000)+36,650=(3,350)

7 0

3 years ago

A manufacturing company budgeted for $1,240,000 in manufacturing overhead and expected 400,000 direct labor hours. Actual overhe

valina [46]

Answer:

a. Under applied by $9,000

Explanation:

Budgeted overheads = $1,240,000

Budgeted overheads = 400,000

Budgeted rate per hour = $1,240,000/400,000 = $3.10

Actual overhead = $1,200,000

Actual Hours = 390,000

Actual Rate per hour = $3.077

budgeted overhead for actual hours = 390,000 $\times$ $3.10 = $1,209,000

Thus, overheads under applied = Standard - Actual = $1,209,000 - $1,200,000 = $9,000

Since actual overheads are less than budgeted it is under applied in case it was more than budgeted then i would be over applied.

Final Answer

a. Under applied by $9,000

8 0

3 years ago