Under a contractionary taxation policy, the government can reduce the deficit by increasing taxes and/or reduce spending. Contractionary policy is often used by governments that need to slow down the pace of its economy, due to an inflation rate problem.
The activities in an organization, who gives all of the costs and restocks all the products they sell by the amount of consumption any specific product has
In price branding, here are the price components of the marketing mix:
- suggested retail price ror SRP
- seasonal pricing
- price discrimination
- Price strategy
- Cash and early payment discounts
- bundling
- Price flexibility
Answer:
The correct option is C. $704,000
Explanation:
The computation of total cash payments is shown below:
= Cost of goods sold - net effect of inventory balance - net effect of accounts payable balance
where,
Net effect of inventory balance = Opening inventory balance - Ending inventory balance
= $200,000 - $188,000
= $12,000
Net effect of inventory balance = Ending accounts payable balance - opening accounts payable balance
= $84,000 - $80,000
= 4,000
So, the cash payment is equals to
= $720,000 - $12,000 - $4,000
= $704,000
Hence, the correct option is C. $704,000
Answer:
If Joel purchases the warehouse, he can rent it to the corporation and charge the highest possible rent within reasonable terms. Joel can avoid double taxation and the corporation will be able to deduct rent expense.
Joel is also able to deduct depreciation expenses, real estate taxes, and other costs from his passive income.
As an individual, Joel is taxed differently for capital gains in case he sells the warehouse, and that rate is generally lower than corporate tax rates.
