Answer:
Explanation:
If the government changes taxes without changing government spending to eliminate the recessionary gap, will the minimum required change in taxes be greater than, smaller than, or equal to the minimum required change in government spending?
The minimum required change in taxes will be greater than that of the minimum required change in government spending
tax multiplier (mpc/mps = 0/8/0.2=0.4) is smaller than the government spending multiplier (1/mps= 1/.2=5) because of the initial increase in disposable income caused by the decrease in income tax will be saved rather than spent
Answer:
Explanation:
The salaries and expenses of the beauty parlor are deductible on Schedule C as business expenses and the depreciation and real estate taxes for the apartment building are deductible for AGI as rental or royalty related deductions. Interest income is included in AGI and the alimony expense is deductible for AGI.
Note: Assumed that the apartment building amounts represent Betty's interest and not the total amount. Te residential real estate taxes and the charitable contributions are detailed below:
Interest Income $ 11255
Salon Revenue $ 86360
Less: Salaries - $ 45250
Supplies - $ 23400
Operating income from Salon $ 17710
Apartment building revenue $ 31220
Less: Depreciation - $ 12900
Taxes on apartment building - $ 11100
Apartment building income $ 7220
Less: Employer share of self employment taxes * - $ 1251
Alimony Deduction - $ 6000
AGI $ 28934
* Betty will owe $ 2502 in self employment tax on her salon income ($ 17710 salon income * 92.35% * 15.3%)
Of the $ 2502, ($ 17710 * 92.35% * 7.65%) = $ 1251 would be deductible as a for AGI deduction
Answer:
The correct answer is option c.
Explanation:
Providing a free sample of cigarettes is a strategy adopted to ensure that the demand becomes less elastic in the future. As nicotine in cigarettes is addicted, providing free sample to people will make them addicted to cigarettes. When people get addicted they will consume despite an increase in price. This makes demand less elastic. Less elastic demand means more profit for businesses.
Answer:
$7,400 per year
Explanation:
Data provided for computing the annual depreciation expense is here below:-
Automated bottling machine = $74,000
Useful life = 10 years
The calculation of annual depreciation expense is given below:-
Annual depreciation expense = Automated bottling machine ÷ Useful life
= $74,000 ÷ 10
= $7,400 per year
Therefore for computing the annual depreciation expense we simply divide the automated bottling machine by useful life.
