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sveticcg [70]
3 years ago
13

Suppose Congress is considering raising the top federal marginal tax rate from 35% to 40%. Senator Jones believes the elasticity

of taxable income is large. Senator Smith believes the elasticity of taxable income is small. (Both believe the elasticity is positive.) The Congressional Budget Office estimates the effects of the tax proposal using each Senator's assumptions. (i) Will the estimates of additional revenue from the tax increase be larger or smaller under Senator Jones's assumptions, compared to Senator Smith's assumptions? (ii) What about estimates of the efficiency costs of the tax increase: which set of assumptions leads to the higher estimate?
Business
1 answer:
KIM [24]3 years ago
3 0

Answer:

Explanation:

Solution-

According to Senator Jones, the elasticity of taxable income is larger, which means that due to a certain percentage rise in taxes, the taxable income rises by a greater percentage. Also, according to Senator Smith, the elasticity of taxable income is small, which means that due to a certain percentage rise in taxes, the taxable income rises by a smaller percentage.

(I) Under Senator Jones assumptions, due to rise in taxes, the taxable income has risen considerably as compared to Senator Smith assumptions. Thus the estimates of additional revenue from the tax increase will be larger under Senator Jones assumptions, compared to Smith's assumptions.

(ii) Since under Senator Jones assumptions, elasticity of taxable income is large. So due to rise in taxes, there is a significant proportional rise in taxable income under Jone's assumptions compared to Senator Smith assumptions. Thus the costs of the tax increase is borne more under Senator Jones assumptions , compared to Smith's assumptions.

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Answer:  Debit Unearned fees $6,120, Credit Fees income $6,120.

Explanation: Garcia Publishing received $24,480 from Otisco on April 1 and this was recorded as unearned fees. This means Garcia would have debited cash with $24,480 and credited unearned fees $24,480. Remember the fees was paid at the beginning of April and is for 36-month subscriptions. So, the amount in unearned fees would be unwound to income (fees) over the tenor of the subscription (36 months). Therefore, monthly amortization would be $24,480 divided by 36 months = $680. April 1 to December 31 is 9 months, $680 multiplied by 9 months is $6,120.

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4 years ago
In 2014, GoPro spent \$27.5$27.5 million on capital expenditures, experienced an increase in net working capital (including cash
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Answer: -248.5

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It can be computed using following formula :-

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UFCF = 18 - 27.5 - 239

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5 0
3 years ago
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<h3><u>Explanation:</u></h3>

The important process that are used by the business can be easily integrated and coordinated with the help of an ERP or an enterprise system. The main purpose of using an ERP system is for the planning of the resources that are used by an organisation. This helps an organisation to integrate different range of applications and also managing the supply chains.

There are different Enterprise system that  business can use for its effective working. They include resources planning (ERP) systems, customer relationship management software and enterprise planning systems. An  Enterprise System acts as a hub in center for the organisations of varying size and serves it for ensuring information flow along the management levels and business functions for its effective operation.

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Answer:

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