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3 years ago

A higher marginal income tax rate reduces incentives to work because

1 answer:

7 0

An increase in the marginal income tax rate is likely to decrease the quantity of labor supplied. because the increase in the tax automatically reduces the profit of the firm. the management will always try to compensate their loss by taking necessary reforms or measures. the first and simplest method to reduce the loss is to cut down the expense by reducing the labour involved.

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Uli produces stereo speakers. The selling price per pair of speakers is $1,930. There is no beginning inventory. Costs involved

blondinia [14]

Answer:

Ending inventory= $240,840

Explanation:

Giving the following information:

Total variable manufacturing costs per unit $470

Fixed manufacturing overhead per year $679,420

During the year, Uli produces 1,610 pairs of speakers and sells 1,340 pairs.

The full costing method (absorption costing) includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. 

First, we need to calculate the total production cost:

Total cost= 1,610*470 + 679,420

Total cost= $1,436,120

Now, the unitary cost and ending inventory cost:

Unitary cost= 1,436,120/1,610= $892

Ending inventory= $892*270 units

Ending inventory= $240,840

7 0

3 years ago

At 17 years old, Otto signed a contract to purchase a new Hummer by advancing a payment of $50,000. However, when Otto turned 20

Aloiza [94]

Read the fine print, if it says “after signing, this contract is final.” Then Otto is screwed, because he must pay the $50,000

Or, Otto could hire a lawyer to fight it in court

Hope this helped ♥︎

7 0

3 years ago

What term means the unused option when deciding how to use one's resources.

andrezito [222]

Answer:

Opportunity cost

6 0

3 years ago

On January 1, Company A leased equipment for a six-year period. Annual lease payments are $12,000 due on December 31 of each yea

raketka [301]

Answer:

Dr Right of use asset 59,007.60

Cr Lease liability 59,007.60

Explanation:

Variable lease payments are generally not included as right of use asset or lease liability. Even though a 60% possibility exists that an additional $5,000 will be paid, they are not based on an index and are not disguised payments (only two exceptions to this rule).

Annual lease payments = $12,000

PV annuity factor, 6%, 6 periods = 4.9173

PV of lease payments = $12,000 x 4.9173 = $59,007.60

3 0

3 years ago

(a) Bank of Marienfield started its first day of operations with $150 million in capital. It received a total of $100 million i

Juliette [100K]

Here, we are going to prepare the balance sheet of Bank of Marienfield using the information given in the question..

Formula for Total liabilities is Capital + Checkable deposit + Loan from bank

Given Information

Capital = $150 Million

Checkable deposit = $100 Million

Loan from bank= $50 Million

Total liabilities = $150 Million + $100 Million + $50 Million

Total liabilities = $300 Million

Additional given Information

Commercial loan = $150 Million

Investment in shares = $120 Million

Investment in Treasury bonds = $20 Million

Required reserve = Checkable deposit * Required reserve rate

Required reserve = $100 Million * 10%

Required reserve = $10 Million

Excess reserve = Total liabilities - (Commercial loan + Investment in shares + Investment in Treasury bonds + Required reserve)

Excess reserve = $300 Million - ($150 Million + $120 Million + $20 Million + $10 Million)

Excess reserve = $300 Million - $300 Million

Excess reserve = $0 Million

Balance sheet of Bank of Marienfield.

Assets Amount Liability Amount

Required reserves $10 million Bank capital $150 million

Excess Reserve $0 Checkable deposit $100 million

Commercial loan $150 million Loan from bank $50 million

Investment in shares $120 million

Invest. Treasury bond $20 million

Total $300 million Total $300 million

3 0

3 years ago