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3 years ago

Us federal income tax is progressive by law, but which best explains why is it sometimes regressive in practice?

2 answers:

3 0

I believe the answer is: High-income earners use tax laws to their advantage to reduce their tax rates

High income earners tend to possess financial knowledge or ability to allow experts who understand the full scope of taxation laws and how to recorded the transactions in a way that make it eligible for tax deduction. This makes a lot of high income earners manage to avoid paying taxes even if they manage to obtain a lot of profit.

NikAS [45]3 years ago

3 0

"High-income earners use tax laws to their advantage to reduce their tax rates" is what best explains why the US federal income tax is progressive by law, but it is sometimes regressive in practice. I hope that this is the answer that you were looking for and the answer has actually come to your great help.

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Explain why it is important for Costco’s corporate accounting, marketing, and operations management business units to access and

Dafna1 [17]

Answer:

Every Business Unit in Costco needs to have access to the Data

Explanation:

Costco Wholesale Company runs a network of customers-only retail stores, doing business as Costco, an American multinational company.

The details must be available to each business unit in Costco.

For example, The accounting department needs to know the buy-and-sell information. To order to make good use of this commodity in its marketing strategy, the marketing professionals need to learn the quality of a particular product.

To insure the inventory management is completed, an operations manager must have access to the data.

8 0

3 years ago

Coney Island Entertainment issues $1,300,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and Dec

Ganezh [65]

Answer:

1) The market interest rate is 5% and the bonds issue at face amount.

Dr Cash 1,300,000

Cr Bonds payable 1,300,000

Year Interest payment Book value of bonds

June/1 $32,500 $1,300,000

Dec/1 $32,500 $1,300,000

June/2 $32,500 $1,300,000

2) The market interest rate is 6% and the bonds issue at a discount.

price of bonds:

PV of face value = $1,300,000 / (1 + 3%)³⁰ = $535,582.79

PV of coupons = $32,500 x 19.600 (PV annuity factor, 3%, 30 periods) = $637,000

market price = $1,172,582.79

Dr Cash 1,172,582.79

Dr Discount on bonds payable 127,417.21

Cr Bonds payable 1,300,000

discount amortization per coupon payment = $127,417.21 / 30 = $4,247.24

Year Cash paid Interest Amortization Bond Book

expense bond discount discount value

June/1 $32,500 $36,747.24 $4,247.24 $123,169.97 $1,176,830.03

Dec/1 $32,500 $36,747.24 $4,247.24 $118,922.73 $1,181,077.27

June/2 $32,500 $36,747.24 $4,247.24 $114,675.49 $1,185,324.51

3. The market interest rate is 4% and the bonds issue at a premium.

price of bonds:

PV of face value = $1,300,000 / (1 + 2%)³⁰ = $717,692.16

PV of coupons = $32,500 x 22.396 (PV annuity factor, 2%, 30 periods) = $727,870

market price = $1,445,562.16

Dr Cash 1,445,562.16

Cr Bonds payable 1,300,000

Cr Premium on bonds payable 145,562.16

discount amortization per coupon payment = $145,562.16 / 30 = $4,852.07

Year Cash paid Interest Amortization Bond Book

expense bond discount premium value

June/1 $32,500 $27,647.93 $4,852.07 $140,710.09 $1,440,710.09

Dec/1 $32,500 $27,647.93 $4,852.07 $135,858.02 $1,435,858.02

June/2 $32,500 $27,647.93 $4,852.07 $131,005.95 $1,431,005.95

6 0

3 years ago

Accounts and Notes Payable On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approac

Anettt [7]

Answer and Explanation:

The journal entries are shown below:

On Feb 15

Purchases $800,000

To Accounts payable $800,000

(Being the purchase of inventory on credit is recorded)

On Mar 31

Accounts payable $800000

To Notes payable $800000

(Being the issuance of note is recorded)

On Sept 30

Notes payable $800,000

Interest expense $40,000

To Cash $840,000

(Being the payment of note and interest is recorded)

The interest expense is computed below:

= $800,000 × 10% × 6 months ÷ 12 months

= $40,000

The six months is calculated from Mar 31 to Sep 30

Only these entries are passed

5 0

3 years ago

Compute the stock turnover for a product that has sales of 350 units and an average of 70 units in inventory.

Harrizon [31]

B. 5

To compute stock turnover divide Sales/Average inventory

350/70= 5

Stock turnover is the amount of times inventory is sold in a given time period.

4 0

3 years ago

Develop an Excel worksheet simulation for the following problem. The management of Paragon Household Products is considering the

Alexxandr [17]

<h2>Disclamer:</h2>

As it ask to run simulations the values calculates will difer even if you follow the same step as I did.

Answer:

Mean Profit: $ 4,295

Probability of loss: 29.80%

As the product has a mean profit it will on average generate gains

but:

as the standard deviation of the simulation was $ 7,778.40

we should not invest on the product as it is to variable

Explanation:

We are going to use the =RAND() function of excel

which, generates a random number between 0 and 1

This will be done 1,000 times 500 for the variable cost

and 500 for the demand.

Then we copy and paste this numbers to get them fixed.

Then, we convert them into actual cost and demand in units considering their distribution

using excel dist.norm.inv

Now, with this values we solve for profit on each one.

FOr the complexity I attached the excel file as the plataform interface cannot handle large tables.

Download xlsx

6 0

2 years ago