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2 years ago

What would happen in the market for loanable funds if the government were to increase the tax on interest income?

Business

1 answer:

nalin [4]2 years ago

5 0

Answer:

Interest rates would rise.

Explanation:

There would be a decrease in the amount of loanable funds borrowed.

if the government were to increase the tax on interest income, a reduction in the amount of funds borrowed would happen because the cost of borrowing would then become higher and people would have to pay more than they would have paid for every amount borrowed

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A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit t

nalin [4]

Answer:

a. Cash for $180

Explanation:

The receipts from the petty cash fund indicate that the owner of the box made purchases adding up to $177. Therefore that money is no longer part of the fund. Since the fund holds $200 and currently only has $20 then to replenish the account the journal entry would need to include a credit to cash for $180 ... ($200-$20=$180)

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0

2 years ago

The next dividend payment by Savitz, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6

zavuch27 [327]

Answer:

Required return for Savitz: 10.95%

Explanation:

<u>Considering the gordon model we have to solve for the cost of capital (Ke)</u>

$\frac{divends}{return-growth} = Intrinsic \: Value$

$\frac{divends}{Price} = return-growth$

$\frac{divends}{Price} + growth = return$

$$Cost of Equity =\frac{D_1}{P)} +g$

D1 2.08

P 42

g 0.06

$$Cost of Equity =\frac{2.08}{42} +0.06$

Ke 0.10952381

8 0

2 years ago

Read 2 more answers

Why is it important to understand that the amount cash paid for taxes is different than the amount of income tax expense?

GarryVolchara [31]

Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

Explanation:

Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.

While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.

The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill

6 0

2 years ago

Samantha invested $14,000 at 6% simple interest for 1 year. How much is in the account at the end of the 1 year period

algol13

Explanation:

The interest = PTR/100

So, here P = Principcal

T = time

R = Rate of interest

= 14000 x 6 x 1 / 100 = 840

So interest = 840

So, The amount at the end = Principcal + Interest

= 14000 + 840 = 14840

6 0

3 years ago

What are two examples of barriers to entry in the magazine market?

Leni [432]

20 = 23+124 ? mab

lasllasldadssgs

ye

8 0

3 years ago