Answer:
Option C- An income tax is progressive if the percentage of income paid as taxes increases as income increases.
Explanation:
Majorly, there are three types of Tax systems; these are: Progressive, regressive and proportional.
A tax in which the tax rate increases as the taxable amount increases is known as a progressive tax.
The term "progressive" refers to the way the tax rate progresses from low to high, such that a taxpayer's average tax rate is less than the person's marginal tax rate.
Also,a progressive tax is applicable to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime. It is imposed with the aim of reducing the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay.
Thus, an income tax is progressive if the percentage of income paid as taxes increases as income increases.
Answer:
The total direct materials cost variance is $3,790 favorable
Explanation:
The computation of the total direct materials cost variance is shown below:
Total direct materials cost variance = Actual cost - standard cost
where,
Actual cost is $267,790
And, the standard cost = Actual finished units produced × Direct materials standard
= 22,000 × $12
= $264,000
Now put these values to the above formula
So, the value would equal to
= $267,790 - $264,000
= $3,790 favorable
This question has a three part answer, with each part broken out below:
A. To record the purchase there is a debit to Purchases and a credit to Accounts Payable, each for $75,000.
B. To record the return there is a debit to Accounts Payable and a credit to Purchases Returns and Allowances, each for $9,000.
C. The amount of the payment is $75,000 - 9,000, which is $64,000. They are paying during the discount period, so will only be paying 98% of this amount, which is $62,720.
The entry is a debit to Accounts Payable for $64,000, a debit to Purchases Discounts for $1,280, and a credit to Cash for $62,720.
