All categories

3 years ago

A progressive tax is such that

Business

1 answer:

Nastasia [14]3 years ago

7 0

Answer:

1. True. The tax rates are higher, the greater one's income

Explanation:

1. True. Progressive tax is defined as a tax whose rate increases as the payer's disposable income increases. The implication is that ,individuals who earn high incomes have a greater proportion of their incomes taken to pay tax.

A perfect example of progressive tax is income tax whose rate is tied directly to personal income income.

2. False. The rate increases as the disposable income of the tax payer increases under progressive tax

3.False. Entrepreneurial income will be taxed after adjusting for allowobale and non-allowable income and expenses and relevant loss relief.

4. False. The revenue realised from progressive taxes are utilized by the government as stipulated in the budget.

You might be interested in

________ holds that there are few really new ideas and that "true is better" than new. Multiple Choice Scientific management The

cestrela7 [59]

Idk Rhett make he djjeic

6 0

3 years ago

Miller Brothers Hardware paid an annual dividend of $0.95 per share last month. Today, the company announced that future dividen

Vlad1618 [11]

Answer:

The amount to be paid to purchase a share of the stock today is $9.37

Explanation:

In this question , we are asked to calculate the amount which is to be paid to purchase a share of a particular stock by a company.

We employ a mathematical approach to this:

Mathematically, the amount to pay to purchase a share of the stock today is = D * [(1+g)/(r-g)]

Where D is annual dividend = $0.95

g = percentage of future dividend increase = 2.6% = 0.026

r = rate of return = 13% = 0.13

We input these values in the formula above:

Amount = 0.95 * [(1+0.026)/(0.13-0.026)] = 0.95 * 9.8654 = $9.37

3 0

3 years ago

Read 2 more answers

You are planning to purchase the stock of Ted's Sheds Inc. and you expect it to pay a dividend of $3 in 1 year, $4.25 in 2 years

Vika [28.1K]

Answer:

$81.52

Explanation:

To determine the price of the stock, one has to calculate the present value of the stock.

The present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow in year 1 = $3

Cash flow in year 2 = $4.25

Cash flow for year 3 = $100 + $6 = $106

I = 12 %

Present value = $81.52

The price one would pay for the stock today is $81.52

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0

3 years ago

Blossom Corporation is authorized to issue 49,000 shares of $5 par value common stock. During 2017, Blossom took part in the fol

Tanzania [10]

Answer:

See explanation section

Explanation:

Requirement A

Debit Cash $194,600

Credit Common stock - Par value $ 22,500

Credit Common stock - Additional paid-in-capital $172,100

Calculation:

Cash: 4,500 shares × $45 = $202,500

As the company's par value is $5,

Common stock - Par value: 4,500 shares × $5 = $22,500

As the market value of the stock is $45, the additional stock value = $45 - $5 = $40. Moreover, the company has issuance cost of $7,900

Additional common stock apart from par value minus the issuance cost = ($4,500 shares × $40) - $7,900 = $180,000 - $7,900 = $172,100.

The company issue common stock with a market value of $45 and issuance cost of $7,900 in exchange of cash.

Requirement B

Debit Land $50,600

Credit Common stock - Par value $ 5,500

Credit Common stock - Additional paid-in-capital $45,100

Calculation:

Land: 1,100 shares × $46 = $50,600

As the company's par value is $5,

Common stock - Par value: 1,100 shares × $5 = $5,500

As the market value of the stock is $46, the additional stock value = $46 - $5 = $41.

Additional common stock apart from par value = ($1,100 shares × $41) = $45,100.

Although the land is appraised for $49,000, due to the increased market price stock, it is valued more.

The company issue common stock with a market value of $46 in exchange for land.

Requirement C

Debit Treasury Stock $19,270

Credit Cash $19,270

Purchasing share from the stock market is known as treasury stock.

Calculation: Treasury stock = 470 shares × $41 = $19,270

Debit Cash $17,860

Credit Common Stock - par value $2,350

Credit Common stock - Additional paid-in-capital $15,510

Calculation:

As the company's par value is $5,

Common stock - Par value: 470 shares × $5 = $2,350

Additional common stock apart from par value = $470 shares × ($38 - $5) = $15,510.

The company issue common stock with a market value of $38 after purchasing those treasury stock at $41 per share.

3 0

4 years ago

What is the best way to increase the availability of ecotourism? fly in more people from around the world. reduce the prices so

wel

C. Increase the amount of protected lands, parks, and conservation areas.

8 0

4 years ago

Read 2 more answers