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3 years ago

Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the

Business

1 answer:

Leviafan [203]3 years ago

6 0

Answer:

b. demand in more elastic than the supply.

Explanation:

Elasticity is defines as the measure of responsiveness of quantity demanded and supplied to changes in price.

In a situation where demand is more elastic than supply and tax is imposed, the suppliers can bear more cost due to tax without the quantity changing by much.

On the other hand when taxes are applied if sellers want to move it to buyers that have elastic demand, it will result in a big fall in the quantity demanded.

So the seller's bear the cost in this scenario because demand is elastic and will fall with small price increase.

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Under U.S. GAAP, if the carrying value of a fixed asset was $50,000, the undiscounted expected future cash flows was $55,000, th

ira [324]

Answer:

Explanation:

According to US GAAP the reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset is reduced than the book value of the asset.

Amortized Cost / Book value = $50,000

Market Value = $53,000

Discounted Value = $51,000

There is no Impairment loss on this asset as the fair market value is more than the book value of the asset.

7 0

3 years ago

Read 2 more answers

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving th

Ronch [10]

Answer:

you should accept the payments because they are worth $56,451.91 today

Explanation:

We have to determinate the present value of the proposed annuity of $641 per month over a ten year spawn

Then, the value of the annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 641.00

time 120 (12 months x 10 years)

rate 0.005416667

$641 \times \frac{1-(1+0.00541666666666667)^{-120} }{0.00541666666666667} = PV\\$

PV $56,451.9083

5 0

3 years ago

Neumann Corporation is planning to issues bonds with a face amount of $2 million. If Neumann's accountant, Betty, wants to calcu

aalyn [17]

Answer:

1. Present value

2. Market

Explanation:

Neumann Corporation is planning to issues bonds with a face amount of $2 million. If Neumann's accountant, Betty, wants to calculate the expected issue she should calculate the present value of the related future cash payments using the market interest rate.

3 0

3 years ago

Read 2 more answers

What is the advantage of Federal Loans over Private Loans? A. Federal Loans have fixed interest rates and Private Loans can have

iVinArrow [24]

The best answer for this question would be A. :)

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3 years ago

If management identifies even one material weakness in internal control, then management will conclude that the organization’s i

solong [7]

Answer:

Statement is true

Explanation:

Internal control over financial reporting was designed to give assurance related to financial statements preparation and authenticity of financial reporting.

Material weakness refers to inefficiency in internal control which could lead to misstatement in financial statement thereby making financial reporting unreliable. As such, even one material weakness would prove ineffective internal control over financial reporting.

8 0

3 years ago