In order to close the salaries account you need to credit the account for what the balance is, and then debit retained earnings for the same amount. This will bring the salaries account to zero for the next account cycle and record the expense in retained earnings.
The entry will be a debit to Retained Earnings for $8,000 and a credit to Salaries Expense for $8,000.
Answer:
the short term, unemployment rates would drop drastically.
In the scenario in which both Lloyd and Harry are claiming patent protection for the same invention
that each independently created, the rights to protection will be
awarded to <span>the one who actually completed the invention first.</span>
This follows from the American standard which states that the "first-to-invent" is awarded the patent.
Answer:
True, True
Explanation:
In terms of economic efficiency in the market for pollution. It does not matter if the government distributes the permits or auctions them off, as long as if firms can sell the permits to each other. The only difference would be that the government could make money if it auctioned the permits off, thus allowing it to reduce taxes, which would help reduce the deadweight loss from taxation in other markets. Some deadweights loss could also occur if firms use resources to lobby for additional permits.
If government chooses to distribute the permits among firms, the firms could sell the permits to each other, this allocation of permits among firms would not matter for efficiency, but affects the distribution of wealth, and those that sold their permits are better off.
Answer:
10%
Explanation:
Given that,
Interest at last year debt = 8%
Current year cost of debt = 25% higher
Firms paid for debt last year = 10%
Firms paid for debt in current year = 12.50%
Kd - cost of debt
Yield = Interest at last year debt × (1 + increase in cost of debt)
= 8% × (1 + 0.25)
= 8% × 1.25
= 10%
Kd = Yield (1 – T)
Kd = 10% (1 – 0)
= 10% (1)
= 10%
Therefore, after tax cost of debt would be 10%.