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denpristay [2]
3 years ago
8

A consumer values a house at $525,000 and a producer values the same house at $485,000. If the transaction is completed at $510,

000, what amount of tax will result in unconsummated transaction? a. A tax of $14,000 b. A tax of $15,000 c. A tax of $9,000 d. A tax of $18,000
Business
1 answer:
REY [17]3 years ago
6 0

Answer:

d. A tax of $18,000

Explanation:

If the price is higher than $525,000 which is his reservation price, the buyer will not buy the good

(1+t) > $525,000 / $510,000

1+t > 1.03

t > 0.03

t > 3%

3% of $510,000 = $15,300. So if the tax is greater than $15,300, the buyer will not buy the good . Hence, the answer is option (D) A tax of $18,000 as this tax is higher than $15,300 while other option are less than $15,300

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Which of the following is a style trend?
maks197457 [2]
Answer:
B

Explanation:
8 0
3 years ago
recent monthly contribution format income statement: Sales$1,652,000 Variable expenses 628,880 Contribution margin 1,023,120 Fix
kati45 [8]

Answer:

Gatty Corporation

1. Segmented Income Statement for the most recent month

Division                                         East        Central       West       Total

Sales                                       $422,000 $650,000 $580,000  $1,652,000

Variable expenses                   227,880    169,000    232,000       628,880

Contribution margin               $194,120  $481,000  $348,000    $1,023,120

Traceable fixed expenses   $268,000 $320,000   $191,000         779,000

Common fixed expenses                                                                  346,000

Net operating income (loss) $(73,880)  $161,000   $157,000       $(101,880)

2. Assuming these estimates are accurate and implemented, the company's net operating loss of $101,880 will decrease by $69,600 to $32,280.

Explanation:

a) Data and Calculations:

GATTY Corporation

Recent monthly contribution format income statement:

Sales                                    $1,652,000

Variable expenses                  628,880

Contribution margin              1,023,120

Fixed expenses                     1,125,000

Net operating income (loss) $(101,880)

Segmented Income Statement for the most recent month

Division                                                             East           Central     West

Sales                                                            $422,000 $650,000 $580,000

Variable expenses as a percentage of sales     54%           26%          40%

Traceable fixed expenses                         $268,000 $320,000   $191,000

1. Segmented Income Statement for the most recent month

Division                                         East        Central       West       Total

Sales                                       $422,000 $650,000 $580,000  $1,652,000

Variable expenses                   227,880    169,000    232,000       628,880

Contribution margin               $194,120  $481,000  $348,000    $1,023,120

Traceable fixed expenses   $268,000 $320,000   $191,000         779,000

Common fixed expenses                                                                  346,000

Net operating income (loss) $(73,880)  $161,000   $157,000       $(101,880)

Segmented Income Statement for the most recent month

Division                                         East        Central       West       Total

Sales                                       $422,000 $650,000 $678,600   $1,750,600

Variable expenses                   227,880    169,000    232,000       628,880

Contribution margin               $194,120  $481,000  $446,600     $1,121,720

Traceable fixed expenses   $268,000 $320,000  $220,000       808,000

Common fixed expenses                                                                 346,000

Net operating income (loss) $(73,880)   $161,000 $226,600      $(32,280)

$(101,880)

$(32,280)

$69,600

4 0
3 years ago
Doyle Company issued $360,000 of 10-year, 8 percent bonds on January 1, Year 2. The bonds were issued at face value. Interest is
Lina20 [59]

Answer:

The balance of the equation at end of year 2 is$388,800

The balance of the equation at end of year 3 is   $417,600

Explanation:

                           Assets                        =Liabilities          +shareholders' equity

                    Land +cash                           Bonds payable     retained earnings

1/1/year 2                   $360,000                  =$360,000

1/1/year 2 $360,000 ($360,000)                

31/12/year2                $53,500                         =                                     $53,500

31/12/year2              ($28,800)                      =                                      ($28,800)                          

Balance                              $388,800          =                                       $388,800

Opening balance                $388,800=                                              $388,800

31/12/year3                            $53,500=                                               $53,500

31/12/year3                           ($28,800)=                                              ($28,800)                                

Balance                               $ 417,600                                                $417,600

                                             

The interest on bond=$360,000*8%=$28,800

3 0
3 years ago
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SpyIntel [72]
The answer would be A. central bank
4 0
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Read 2 more answers
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Nikolay [14]

Answer:  

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Explanation:

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4 0
3 years ago
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