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3 years ago

The nature of the tax system means that there is usually a trade-off between _ and _.

Business

1 answer:

IgorC [24]3 years ago

5 0

Answer:

equity and efficiency

Explanation:

Under the tax system there is no tax on losses. And also the losses can be carried forward and set off to profits in future.

When profits are earned the taxes are paid. After that the remaining profit is either distributed to equity or retained for future purposes.

The more efficiently the company works, higher will be the profit and higher will be the taxes.

As profit is for equity, and from that share the amount is given to tax authorities, which is some part of income, share of equity to tax.

Though it does not provide for right in company, but it is legal to pay the tax.

That is the price you pay for increasing or decreasing efficiency, in the form of income available for equity.

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A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. Wha

forsale [732]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours.

To calculate the depreciation expense for each year, we need to use the following formula:

Annual depreciation= 2*[(book value)/estimated life (years)]

Year1= [(65,000 - 5,000)/4]*2= $30,000

Year2= [(60,000 - 30,000)/4]*2= $15,000

3 0

4 years ago

On September 1, the Consul Company acquired $10,000 face value, 8% bonds of Envoy Corporation at 104. The bonds were dated May 1

Aleksandr-060686 [28]

Answer:

correct option is A. Investment in bonds $10,400

Interest receivable 266

Cash $10,666

Explanation:

given data

face value = $10,000

bonds = 8%

mature time = 5 years

solution

we know at At 104

price paid for the bonds = $10,400 in absence of accrued interest

this is because of bond that is purchase between interest date and cash interest for time May 1 to September 1 4 months

and here interest will be for 4 month is

interest = face value × bonds rate × timer

interest = $10000 × 8% × $\frac{4}{12}$

interest = $266.67

so total amount paid will be

total amount paid = $10400 + $266.67

total amount paid = $10666.67

as on October 31 interest received here interest receivable will credit of $266

so correct option is A. Investment in bonds $10,400

Interest receivable 266

Cash $10,666

4 0

3 years ago

Recently, a certain bank offered a 5-year CD that earns 3.26% compounded continuously. Use the given information to answer the q

Maru [420]

Answer:

a. The CD will worth $35,311 in five years.

b. It will take 12.44 years for the account to be worth $45,000.

Explanation:

a) If $30,000 is invested in this CD, how much will it be worth in 5 years?(Round to the nearest cent.)

This can be determined using the formula for calculating the future value (FV) compounding formula as follows:

FV = PV * e^(rn) ................................... (1)

FV = Future value in five years = ?

PV = Present value of amount invested = $30,000

e = Mathematical constant approximated as 2.7183

r = Interest rate = 3.26%, or 0.0326

n = number of years = 5

Substituting the values into equation (1), we have:

FV = $30,000 * 2.7183^(0.0326 * 5)

FV= $35,311

Therefore, the CD will worth $35,311 in five years.

(b) How long will it take for the account to be worth $45,000?(Round to two decimal places as needed)

Also, using equation (1) part a, we have:

FV = Future value in n years = $45,000

PV = Present value of amount invested = $30,000

e = Mathematical constant approximated as 2.7183

r = Interest rate = 3.26%, or 0.0326

n = number of years it will take to have $45,000 = ?

Substituting the values into equation (1), we have:

$45,000 = $30,000 * 2.7183^(0.0326 * n)

$45,000 / $30,000 = 2.7183^(0.0326 * n)

1.50 = 2.7183^(0.0326 * n)

Loglinearise both sides and solve for n, we have:

Log(1.50) = (0.0326 * n)Log(2.7183)

0.176091259055681 = 0.0326 * n * 0.434297385124509

0.176091259055681 = n * 0.014158094755059

n = 0.176091259055681 / 0.014158094755059

n = 12.44 years

Therefore, it will take 12.44 years for the account to be worth $45,000.

6 0

3 years ago

Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the

Papessa [141]

Answer:

27.14%

Explanation:

EFF ( effective annual interest rate) = ( 1 + ( rate / number of periods)^n -1 = ( 1 + ( 0.2425 / 12)^12 -1 = 0.2714 = 27.14% where rate = 24.25% and number of periods = 12 months

6 0

4 years ago

Read 2 more answers

In 2020, Bertha Jarow had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor f

mina [271]

Answer and Explanation:

a. The net long term capital loss would be $7,000

And, the net short term capital gain would be $14,000 ($21,000 - $7,000)

So as a result the overall net short term capital gain is $7,000

b. Since there is a loss arise from the personal residence of $28,000 so the blank would be filled by the amount i.e. $28,000 and the rest of the things would be alright.

7 0

3 years ago

The nature of the tax system means that there is usually a trade-off between ___ and ___.

The nature of the tax system means that there is usually a trade-off between _ and _.