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levacccp [35]
3 years ago
10

Suppose during 2020due to relief in Taxation Marginal Propensity to Consume (MPC) will increase from 0.65 to 0.75then calculate

Tax multiplier (KT).
Business
1 answer:
Tomtit [17]3 years ago
6 0

Answer:

K_T = -3

Explanation:

Given

MPC_1 = 0.65

MPC_2 = 0.75

Required

Determine the Tax Multiplier (KT)

KT is calculated as follows;

K_T = \frac{-MPC}{1 - MPC}

Substitute 0.75 for MPC because MPC has changed from 0.65 to 0.75

K_T = -\frac{0.75}{1 - 0.75}

Evaluate the denominator

K_T = -\frac{0.75}{0.25}

Divide fractions

K_T = -3

Hence, the tax multiplier is -3

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Financial statement account identification mark each of the accounts listed in the following table as follows.
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Answer:

Account name                         statement(1)                     type of account(2)

Accounts payable                      BS                                        CL

Accounts receivable                  BS                                          CA

Accruals                                     IS and BS                             income and SE        

Accumulated amortization        BS                                       FA

administrative expenses            IS                                      E

Buildings                                       BS                                   FA

Cash                                              BS                                  CA

Common shares                           BS                                    SE

Cost of goods sold                     IS                                       E                        

Amortization                                 BS                                     E

Equipment                                       BS                                 F ASSET

General expenses                           IS                                     E

Intrest expenses                                IS                                     E

Account name                        Statement(1)                 type of account(2)

Inventories                                   BS                                   CA

Land                                             BS                                    FA

long term debts                          BS                                    CL

Machinery                                  BS                                       FA

marketable securities               BS                                      CA

Line of credit                              BS                                             LTD

operating expense                    IS                                           E

Preferred shares                     BS                                      SE

preferred share dividends      BS                                     SE

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Selling expense                    IS                                                E

Taxes                                         IS                                             E

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Lucas Diving Supplies Company, in its first year of business, had labor costs of $57,000, overhead costs of $88,000, materials p
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Answer:

$162,000

Explanation:

The amount of cost of goods manufactured is computed as

= Labor cost + Direct materials purchased + overhead costs - ending balance of materials - ending balance of work in process

= $57,000 + $25,000 + $88,000 - $3,000 - $5,000

= $162,000

Hence, the cost of goods manufactured is $162,000

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