Answer:
a) Means higher marginal tax rates at higher income levels.
Explanation:
The progressive tax system is a system where the rate of the taxes according to the increased in the taxable amount. It generally applied to the personal income taxes that means if the people have the less income so less tax rate would be applied and if the people have the high income so high tax rate is applied
Therefore as per the given situation, the option a is correct
Answer:
option a) 5 billion
Explanation:
Data provided in the question:
GDP = $20 billion
Cost of goods and services = $3 billion
Tax collected = $6 billion
Transfer payments to households = $2 billion
Private saving in Growpaw = $4 billion
Now,
Disposable income = GDP - taxes + transfer payments
=$20 billion - $6 billion + $2 billion
= $16 billion
Consumption = Disposable income - Savings
= $16 billion - $4 billion
= $12 billion
Thus,
Investment = GDP - consumption - government purchases
= $20 billion - $12 billion - $3 billion
= $5 billion
Hence,
the correct answer is option a) 5 billion
Based on the information that has been given above, it is likely that the information has been stored on Noreen's short term memory. The short term memory is where memories could be stored in a short period of time, it could be determined or seen above as Noreen had saw the cars on the road but could no longer remember their colors as it was stored on her short term memory.
Answer:
$210,000
Explanation:
The computation of the external price is shown below
Making cost = buying cost
$120,000 + $25,000 + $45,000 + $30,000) = external price + Unavoidable fixed cost (30,000-20,000)
$220,000 = External price + $10,000
So,
External price = 210,000
Hence, the same is to be considered
Therefore the external price is $210,000
Answer:
1) deferred tax asset = 4000
2) deffered tax Liability = 4000
Explanation:
1) Journalizing entry at 12/31/2017
deferred tax asset = tax ( per income tax) - tax ( per book tax )
= 32000 - 28000 = 4000
J<u>ournal Entry made for Income tax and deferred tax asset)
</u>
Account Debit Credit
Income Tax Expense 28000
Deffered Tax Asset 4000
Income Tax Payable
32000
2) Journalizing entry at 12/31/2018
Deffered tax Liability = Tax (per book) - Tax ( Income tax )
deffered tax Liability = 32000 - 28000 = 4000
<u>Journal Entry made for Income tax and deffered tax liability</u>
Account Debit Credit
Income Tax Expense 32000
To Deffered Tax Liability 4000
To Income Tax Payable 28000
