Answer: Option (B) is correct.
Explanation:
Correct option: The marginal utility from consuming good A will be lower than before.
This due to the law of diminishing marginal utility. When the price of good A falls as result consumer will buy more quantity of good A. But according to the law of diminishing marginal utility, as the consumers consumes more and more quantity of good, the utility derived from an additional unit goes on diminishing.
Therefore, the marginal utility from consuming good A will be lower than before.
When a qualified plan starts making payments to its recipient the gains are taxable. Gains are the profit/return that are made from an investment. A gain can be something you make from a sale or or inheritance. Gains are typically taxed in a higher tax bracket as well.
For me i would say the answer is C
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Answer:
$669,950
Explanation:
Computation of taxable income
Bali’s net book income before tax$605,800 Excess of book over tax depreciation25,600
Book gain on equipment sale$(23,000)
(53,000-27,400)
Tax gain on equipment sale38,000 15,000
(23,000-38,000=15,000)
Nondeductible loss on sale to related party 23,550
(75,000-51,450)
Taxable income$669,950
(605,800+25,600+15,000+23,550)
Therefore the taxable income will be $669,950
The next step is to decide about the resources to be committed.
