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Gala2k [10]
3 years ago
7

This year, Company LI built a light industrial facility in County G. The assessed property tax value of the facility is $20 mill

ion. To convince Company LI to locate within its jurisdiction, the county abated its 4 percent property tax for the year. Because of the local economic boom created by the new facility, the aggregate assessed value of County G’s property tax base (including the LI facility) increased to $23 million. Compute the net effect on County G’s current year tax revenue from the abatement.
Business
1 answer:
const2013 [10]3 years ago
8 0

Answer:

Net Revenue=$120,000

Explanation:

Given Data:

Tax abated=4%

Assessed property tax value of the facility=$20,000,000

New assessed property tax value of the facility=$23,000,000

Required:

Net effect on County G’s current year tax revenue from the abatement=?

Solution:

Decrease in revenue=(0.04*$20,000,000)

Decrease in revenue=$800,000

Decrease in Revenue due to economic boom=0.04*$23,000,000

Decrease Revenue due to economic boom=$920,000

Net Revenue= Decrease Revenue due to economic boom-Decrease in revenue

Net Revenue=$920,000-$800,000

Net tax Revenue=$120,000

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Gundy Company expects to produce 1,304,400 units of Product XX in 2020. Monthly production is expected to range from 87,000 to 1
Inessa05 [86]

Answer:

                             Gundy Company

             Manufacturing Flexible Budget Report

             For the Month Ended March 31, 2020

                                   Budget                Actual

Units produced         107,000               107,000  

Variable Costs:

Direct Materials        $428,000            $455,000      $27,000 U

                                 ($4 * 107,000)

Direct labor               $749,000             $746,000      $3,000 F

                                  ($7 * 107,000)

Overhead                   $963,000            $971,000      $8,000 U

                                  ($9 ×* 107,000)

Total variable costs  $2,140,000          $2,172,000  $32,000 U

Fixed Costs:

Depreciation                $434,800           $434,800     $0

Supervision                  $108,700            $108,700      $0

Total fixed costs          $543,500          $543,500     $0

Total costs                   $2,683,500         $2,715,500    $32,000 U

Workings:

Depreciation = (1,304,400 * $4) / 12 = $5,217,600 / 12 = $434,800

Supervision = (1,304,400 * $1) / 12 = $1,304,400 / 12  = $108,700

3 0
3 years ago
A government began 2013 with a budget deficit and a trade deficit. During the year, the government changed its policy and is now
ddd [48]

Answer:

the exchange rate and the trade deficit to decrease.

Explanation:

A deficit can be defined as an amount by which money, falls short of its expected or required value.

Generally, deficit in financial accounting is usually as a result of expense exceeding revenue or revenue falling below expenses at a specific period of time.

For instance, when liabilities exceeds assets or import exceeds export there would be a deficit in the financial account.

Generally, a deficit on the current account ultimately implies that the value of goods and services exported is lower than the value of goods and services being imported in a particular country.

In 2013, government began with a budget deficit and a trade deficit. During the year, the government changed its policy and is now running a budget surplus.

Hence, this change in policy will cause the exchange rate and the trade deficit to decrease if all other factors hold constant

7 0
3 years ago
1. The giving up of one benefit or advantage in order to gain another regarded as more favorable.
Serjik [45]

Answer:

1. Trade off

2. Opportunity cost

3. Cost-benefit analysis

4. Diminishing marginal utility

Explanation:

1. Giving up one benefit or advantage to gain another regarded as more favorable is called trade-off. Every economic decision involves some trade-off.

2. Opportunity cost is the second-best alternative or value of the alternative, that must be given up when making a choice. Because of scarce resources with alternative uses allocation of resources involves some opportunity cost.

3. Cost-benefit analysis can be defined as the process of examining the benefits and costs of each available alternative in arriving at a decision. Resources are allocated efficiently if the cost incurred and benefit earned is equal.

4. As we go on increasing the quantity consumed of a product, the marginal utility or satisfaction earned from its consumption goes on decreasing. This is called diminishing marginal utility.

7 0
3 years ago
Larry is a minor, age 16 years old.
maxonik [38]

Answer:

What is entirely true about this contract is:

The contract is a VALID contract but is also a VOIDABLE contract on the part of Larry but NOT on the part of Sprint.

Explanation:

As a minor, Larry (he was under the age of 18 when he signed the contract with Sprint) lacks the contractual capacity to enter into the contractual relationship with Sprint.  But since he has signed the contract in exchange for the purchase of the cell phone, Larry can either honor the deal or void the contract.  This is why the contract is said to be valid but voidable at Larry's behest.  However, after Larry has turned 18, if he has not done anything to void the contract, then the contract with Sprint can no longer be voided.

4 0
3 years ago
Match Group went public in November 2015. The company sold 33,333,333 shares at $12 per share. The underwriting spread was $0.66
kipiarov [429]

Answer:

5.5%

Explanation:

The underwriting spread = $0.66 per share

the percent underwriting spread = ($0.66 / $12) x 100 = 5.5%

The underwriting express is the fee that the underwriter of the stock (usually an investment bank) will charge the company for carrying out the transaction, either an IPO or simply issuing more stocks.

3 0
3 years ago
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