Answer:
Explanation:
The computation is shown below:
Corporate tax = (Taxable income - bonus expenses) × corporate tax rate
= (925,000 - $153,000) × 21%
= $162,120
The corporate tax rate is 21% and we take the same for computation
Shareholder tax = Bonus expenses × marginal tax rate
= $153,000 × 35%
= $53,550
So, the total income tax would be equal to
= $162,120 + $53,550
= $215,670
Answer and Explanation:
The Journal Entry is shown below:-
Mar-01
Cash dividends Dr, $98,250
(131,000 × $0.75)
To Dividends payable Dr, $98,250
(Being declaration of dividends is recorded)
Mar-10
No entry required
Mar-31
Dividends payable Dr, $98,250
To Cash $98,250
(To record payment of dividends)
The correct option is (A) Budget deficit.
A budget deficit is created each time the federal government spends more than it collects in taxes in a given year.
<h3>
What is budget deficit?</h3>
- A budget deficit is created when expenditure exceeds income, therefore it can be a positive indicator for a country's finances.
- The government often refers to spending as a "budget deficit" rather than income from businesses or individuals. Accumulated deficits are the basis of the national debt.
- The two main causes of budget deficits are excessive government expenditure and a lack of sufficient revenue.
- Tax reductions can result in a reduction in tax revenue, which can cause a budget deficit, or they might raise government expenditure above and above what it already receives in tax revenue.
- Consider a simple example where the government earns $10 billion in revenue one year but spends $12 billion, resulting in a $2 billion deficit.
Learn more about the budget deficit with the help of the given link:
brainly.com/question/10876388
#SPJ4
Answer:
TRUE
Explanation:
Sometimes the risks posed by a project are deemed unacceptably large compared to the potential benefits, and the ultimate avoidance strategy is to not perform the project at all.
The major reason for risk identification in risk analysis is to know if there are risks that will either cause the project to fail or erase all the potential benefits of the project.
Risks that have been categorized as both <u>high impact and high probability of occurrence will most likely cause a project to be terminated</u>, or to fail if it is continued in spite of the risks identified.
Such projects can only be performed if they somission critical and their impact and probability of occurrence can be reduced
Answer:
average fixed costs per unit would decrease.
Explanation:
Currently Cindy's monthly total fixed costs = $500, and since it produces 100 units per month, the average fixed costs per unit = $500 / 100 units = $5 per unit.
If fixed costs fell to $400, then the average fixed costs per unit = $400 / 100 units = $4 per unit.
While her average variable costs remain the same = $2,500 / 100 units = $2.50 per unit
