Answer:
The tax on hearing aid is $120 per unit.
Explanation:
The supply curve for hearing aid is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line.
A tax is imposed on each unit of hearing aid.
As a result of the tax, the equilibrium quantity of hearing aids decreases from 10,000 to 9,000.
The deadweight loss of the tax is $60,000.
Deadweight loss =
$60,000 =
$60,000 =
Tax =
Tax = $120
Answer:
Debit Credit
Income Summary $1,500
Retained Earning $1,500
Credit Balance of income Summary account will be closed by a debit entry in this account. Transfer the balance to retained earning by credit entry to this account.
Answer:
$106,800
Explanation:
<em>The cost of land includes purchase plus all other costs necessary to bring and make it ready for the intended use. </em>
These costs include purchase cost, fees and commission associated with the purchase transaction.
Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.
However, remember that land is not depreciated because it has an infinite life span.
So using the historical cost principle the cost of the land
= $96800 + $3700 + $7500 - 1,200
= $106,800
The private sector understand know how to clearly give customers what they want and need but it is hard to do that as a collective need and often satisfies different consumers for different reasons. Because they are unable to satisfy everyone all of the time with the same needs and wants, it is better to leave the government in control of security, defense, highways and things that are a standard need for everyone.