Answer:
a.$4,704
Explanation:
Depreciation rate applicable for 2nd year as per MACRS 5 year class property = 32%
So, Irene cost recovery deduction = $21,000 * 32% * 70% = $4,704
Hence, the cost recovery deduction for Irene in 2020 is $4,704.
Answer:
High capital expenditures, low depreciation, increasing working capital
Explanation:
In simple words, cash flows refers to the in and out transnfer of cash from and by a company while operating their business and doing several differnet transactions. You just had to spend a great deal for cashflow to really be unfavorable, despite higher profits. Reinvestment consists of two components: the disparity among the capital expenditure and the deterioration which is also termed as net capital expendture as well as the working capital impact (with diminishing cash flows increasing).
Answer:
C. What the program will ultimately cost the federal government
Explanation:
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 was an attempt to make improvements or amendments to the Social Security Act. It radically changed the playing field for private plans participating in the Medicare program by substantially raising monthly payment rates in an effort to stabilize the market and reverse the decline in benefit generosity. It also provided for voluntary prescription drugs under the medicare program. However, the utilization and cost of the program skyrocketed as soon as the funding source was established. It has remained unknown what the program will ultimately cost the federal government, no wonder the current administration under Trump wants to turn it upside down.
Answer:
The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.
Explanation:
The amount of the tax on a bottle of wine is $5 ($3 + $2).
The burden on consumers is $3 ($9 - $6), which is the difference between the after-tax purchase price and the before-tax purchase price for consumers. This implies that the burden passed to consumers is $3 out of the total tax burden of $5.
The burden on producers is $2 ($6 - $4) which represents the difference between before-tax selling price and the after-tax selling price for the producers. This means that the burden passed to producers is $2 out of the total tax burden of $5.
If the tax burden were passed to the producers alone, the selling price would have been more than $11 ($6 + 5). This would have reduced demand for wine as consumers would have been forced to bear the total burden. This would have made the tax unequitable. This would have been the case unless demand is inelastic. That means that the total demanded is not sensitive to price increases.
