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3 years ago

If the government repeals an investment tax credit and increases income taxes:

Business

1 answer:

elena-14-01-66 [18.8K]3 years ago

8 0

Answer:

The correct answer is ( D)

Explanation:

Increase in income tax has negative effects on the overall economic growth of a country. The economic growth of a country depends upon the real GDP growth. Increase in income tax leads to a decline in real GDP and price level, because public will try to save money and that leads to decrease in price level and low output productivity.

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Contribution Income Statement and Cost-Volume-Profit Graph Kopi Company produces dog cages that are sold for $38 per unit. The c

Marrrta [24]

Answer:

Results are below.

Explanation:

First, we need to calculate the total unitary variable cost:

Direct materials= 10

Manufacturing overhead= 5

Direct labor= 2

Selling and administrative= 5

Total unitary variable cost= $22

Now, the contribution margin income statement:

Sales= 5,000*38= 190,000

Total variable cost= 22*5,000= (110,000)

Total contribution margin= 80,000

Fixed Manufacturing overhead= (35,000)

Fixed Selling and administrative= (15,000)

Net operating income= 30,000

7 0

3 years ago

On January 1, 2017, Eagle borrows $16,000 cash by signing a four-year, 5% installment note. The note requires four equal total p

goblinko [34]

Answer:

Issuance - January 1, 2017

Cash $16,000 (debit)

Note Payable $16,000 (credit)

December 31, 2017

Interest Expense $800 (debit)

Note Payable $3,712.19 (debit)

Cash $4,512.19 (credit)

December 31, 2018

Interest Expense $614.39 (debit)

Note Payable $3,897.80 (debit)

Cash $4,512.19 (credit)

December 31, 2019

Interest Expense $419.50 (debit)

Note Payable $4,092.69 (debit)

Cash $4,512.19 (credit)

December 31, 2020

Interest Expense $214.87 (debit)

Note Payable $4,297.32 (debit)

Cash $4,512.19 (credit)

Explanation:

The Loan Amortization Schedule is most appropriate way to solve all parts of this problem.

The first step to construction of the Amortization Schedule is to determine the payments made annually, PMT (interest and principal).

Using a Financial calculator, this can be determined as ;

Pv = $16,000

r = 5%

n = 4

Fv = $0

p/yr = 1

Pmt = ?

Thus PMT is $4,512.19.

Amortisation Schedule (Extracted from Financial Calculator)

2017

Principle Payment = $3,712.19

Interest Payment = $800

Balance = $12,287.81

Accounting Entries :

Interest Expense $800 (debit)

Note Payable $3,712.19 (debit)

Cash $4,512.19 (credit)

2018

Principle Payment = $3,897.80

Interest Payment = $614.39

Balance = $8,390

Accounting Entries :

Interest Expense $614.39 (debit)

Note Payable $3,897.80 (debit)

Cash $4,512.19 (credit)

2019

Principle Payment = $4,092.69

Interest Payment = $419.50

Balance = $4,297.32

Accounting Entries :

Interest Expense $419.50 (debit)

Note Payable $4,092.69 (debit)

Cash $4,512.19 (credit)

2020

Principle Payment = $4,297.32

Interest Payment = $214.87

Balance = $0

Accounting Entries :

Interest Expense $214.87 (debit)

Note Payable $4,297.32 (debit)

Cash $4,512.19 (credit)

8 0

3 years ago

A list of Year 3 revenues and expenses for Green Thumb, Inc. is provided below. Advertising and Promotion Expenses 262,700 Incom

iren2701 [21]

Answer:

A. Net Income = $304,560

B. Ending Retained Earnings = $420,740

Explanation:

Req. (A)

Green Thumb, Inc.

Income Statement

For the year ended, 31 December, 20Y3

Revenues:

Sales Revenues $1,866,300

Expenses:

Salaries and wages expenses $725,000

Advertising and Promotion Expenses 262,700

Income Tax Expense 56,520

Interest Expense 43,920

Other Expenses 122,600

Other Selling & Administrative Expenses 351,000

Total Expenses = ($1,561,740)

Net Income = $304,560

Note: We can use a multiple step income statement. However, as there is no instruction, we use single step income statement.

Req. (B)

Green Thumb, Inc.

Statement of Retained Earnings

For the year ended, 31 December, 20Y3

Balances, January 1 $162,200

Add:

Net income for the current year $304,560

Less: Dividends ($46,020)

Balances, December 31 $420,740

Note: Here, Balances, January 1 = Beginning Retained earnings Balance

Balances, 31 December = Ending retained earnings.

3 0

3 years ago

The basic economic problem results from not having enough resources to satisfy every need. a. True b. False

o-na [289]

Answer:

True

Explanation:

Because the less product means less sales and less happy people. Hope this helps.

7 0

3 years ago

A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $768,000 of its accounts receivable as

denpristay [2]

Answer:

See all the entries below.

Explanation:

a. Record the entry for Sterling to record the secured borrowing.

The entries will look as follows:

Account Name Debit ($) Credit ($)

Cash (768,000 * 85%) 652,800

Note Payable 652,800

(To record the secured borrowing.)

b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.

The entries will look as follows:

Account Name Debit ($) Credit ($)

Cash 504,320

Refund Liability 20,480

Accounts Receivable 524,800

(To record collection on receivables for first month.)

Interest Expense 4,480

Note Payable 499,840

Cash 504,320

(To record payment to Miami for the first month.)

c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

The entries will look as follows:

Account Name Debit ($) Credit ($)

Cash 238,080

Allowance for Doubtful Debt 5,120

Accounts Receivable (w.1) 243,200

(To record collection on receivables for second month Interest.)

Expense 1,920

Note Payable 151,040

Cash (w.2) 152,960

(To record final payment to Miami.)

Workings:

w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200

w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960

3 0

3 years ago