Answer:
b. She receives $10,000
Explanation:
Taxes owed = (1/4 of income) - $15,000.
Taxes owed = (1/4 x 20,000) - $15,000.
= 5,000 - 15,000 => -10,000
Hence, she receives $10,000 from the government.
A negative income tax is a system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.
Answer:
The correct answer is option (a).
Explanation:
According to the scenario, computation of the given data are as follows:
Allowance method shows that, if account is written off, then Accounts receivable account gets credited and Allowance accounts gets debited.
Here, both accounts are or balance sheet items.
So, it will not affect any expenses account.
Answer:
$50,000
Explanation:
Since the service year is for a period of two year beginning from January 1 2018,the fair value of the shares options would be recognized over the two years on straight line basis,in other words $50,000 is the compensation expense for each i.e $100,000/2.
The appropriate entries would be a credit to paid in capital-share options account and debit goes to compensation expense in both years.
For instance ,2018 entries would:
Dr compensation expense $50,000
Cr paid in capital shares options $50,000
<span>1. When John received his W2, he received several copies. Why was he sent multiple copies of this form?
The different copies are for John and each tax return he may file
2. Who sent John this W-2?
John's employer - ProperLiving Widget Engineering & Design
3. How much did John make in wages in the 2014 tax year? (assuming this was John's only job)
I do not know
4. How much did John 'take home' in net pay? (assuming this was John's only job)
I do not know
5. How much did John save in his 401(k) in the 2014 tax year?
I do not know
6. Assume your employer provides health care insurance and deducts your portion of the premiums from your paycheck with pre-tax dollars. Are your health insurance premiums federally tax deductible?
Yes
8. Select what would happen to your 1) taxable income and 2) tax liability when you are able to claim a deduction such as student loan interest?
1) lower 2) higher
9. Which are tax deductible?
Student loan payments
</span>
Cross elasticity of demand measures the responsiveness in the quantity demand of one good when a change in price takes place in another commodity or good. It is calculated by dividing the percentage change in the quantity demanded of one good by the percentage change in price of other good.
Therefore, in this case, cross elasticity of demand will be;
17%/-2% = - 8.5 (-2% because its a decrease)
Thus , the elasticity will be -8.5
