Answer:
The financial statements are prepared in this order; income statement, balance sheet, and statement of stockholders' equity.(2,1,3)
Explanation:
The income statements contains the revenue and expenses, the net of which gives rise to a net income. The net income is what feeds into the retained earnings account to determine the closing balance of the retained earnings which is an element of the balance sheet.
After the income statement, the balance sheet is prepared. This shows the assets, liabilities and owners equity (of which retained earnings is a part).
The elements of the owners equity forms an integral part of the statement of stockholders' equity. Hence it is prepared after the balance sheet.
Answer:
(A) $500 million
(B) This type of analysis is used to show that Special Interest Groups tend to press the government for TRANSFERS instead of ECONOMIC GROWTH.
Explanation:
1/10,000 of the real GDP is = $50,000
RGDP = 50,000 ÷ 1/10,000
RGDP = 50,000 × 10,000 = $500,000,000
If special interest group Q would have to be indifferent (not care which policy is applied at the given time) between the 2 policies, then the economic growth policy would have to increase the size of the RGDP (the economic pie) by an amount sufficient enough for them to get their net benefit of $50,000.
The RGDP figure above ($500 million) is the amount by which RGDP (real gross domestic product) should grow, if Group Q will still get their net benefit when only the economic growth policy (EGP) is applied.
In this case, the EGP applied in place of the TP (transfer policy) would still fetch Group Q the minimum net benefit of $50,000
(B) This type of analysis is used to show that Special Interest Groups tend to press the government (policy makers and enforcers) for TRANSFERS instead of ECONOMIC GROWTH.
Answer: $30,000 of taxable income
Explanation:
Rianna will pay $30,000 of taxable income.
Answer:
The maximum depreciation expense is $2,792
Explanation:
In order to calculate the maximum depreciation expense we would have to calculate the depreciation of service computer equipment and the service furniture as follows:
depreciation of service computer equipment=$15,500*5%
depreciation of service computer equipment=$775
depreciation of service furniture=$11,300*17.85%
depreciation of service furniture=$2,017
Therefore, maximum depreciation expense=depreciation of service computer equipment+depreciation of service furniture
maximum depreciation expense=$775+$2,017
maximum depreciation expense=$2,792