Amounts withheld from employee's earnings for the employee income tax is considered a liability by the employer until the government is paid
What is liability?
Liability means the obligation that one party owes another, whose settlement requires the indebted party to transfer cash or equivalent value of other benefits commensurate to the liability to the other party.
In this case, the employees owe the government income taxes, whereby the employees have discharged the obligation by having the employers deduct them from their earnings.
The onus is now on the employers to make payments in respect of the income taxes withheld to the tax authority, prior to which the taxes are treated as the employer's liability.
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Missing options:
(A) assets. (B) liabilities. (C) salary expense. (D) revenue.
Answer:
Dr Land $146,440
Cr Common stock (3,380 shares×$12 par value) $40,560
Cr Paid in Capital in excess of Par common stock $105,880
Explanation:
Arasota Company Journal entry
Dr Land $146,440
Cr Common stock (3,380 shares×$12 par value) $40,560
Cr Paid in Capital in excess of Par common stock $105,880
Answer:
I believe 1 would be A. "A file" and 2 would be C. "An application" Hoped this helped, if I'm wrong please let me know!
Answer:
$25.86.
Explanation:
To address this problem we first calculate the present value of all dividend received at time t = 20, then we discount that sum to time t = 0 (now).
The cashflow pattern of this preferred stock is similar to perpetuty.
Stock value at time t = 20 = Dividend/Required rate of return = 20/10.5% = 190.48
Stock value at time t = 0 = (Stock value at time t = 20)/(1 + Required rate of return)^20 = 190.48/(1 + 10.5%)^20 = 25.86.
Answer:
Explanation:
a. A temporary increase in government purchases would result in a reduction in savings, which would, in turn, lead to the implementation of higher taxes by the government so as to match prices and wages.
This would: make output to remain unchanged, real interest to increase and current price level to increase as well.
b. A reduction in expected inflation would lead to an increment in the demand for real money, as people do not expect inflation to increase for a while. Thus, more demand creates a reduction in the price level. Everything else remains unchanged. This would: make output remain unchanged, real interest remain unchanged and the current price level to decrease.
C. A temporary increase in labor supply would make more people have jobs and therefore more people can save. If more people save the interest rates are liable to decrease therefore money demand will increase. This would: make output to increase, real interest to decline and current price level to decrease.
d. An increase in the interest rate paid on money will lead to a higher demand for money. With an unchanged nominal money supply and higher money demand, the price would decline but everything remains unchanged. This would make: output remain unchanged, real interest remains unchanged and the current price level decrease.
