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Lemur [1.5K]
3 years ago
13

Early this year, ZeZe Inc. paid a $52,000 legal fee in connection with a disputeover ZeZe’s title to investment land. ZeZe’s aud

itors required the corporation toexpense the payment on this year’s financial statements. According to ZeZe’s taxadviser, the payment is a nondeductible capital expenditure. ZeZe’s tax rate is 35 per cent.
a. Compute the deferred tax asset or a deferred tax liability (identify which)resulting from this difference in accounting treatment.

b. When will the temporary difference reverse?
Business
1 answer:
Vadim26 [7]3 years ago
4 0

Answer:

a. $18,200

b.  temporary difference reverse when ZeZe disposes of the land.

Explanation:

a. 52000*0.35=$18,200

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Molly may not recover damages.

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4 0
3 years ago
When supply increases, the supply curve
MariettaO [177]

When supply increases, the supply curve  shifts to the right.

<h3>What is the supply curve?</h3>

This is the curve that is used to show the amount of goods that the producers would be able to make available for the market at a particular price. The supply curve shifts to the right when there is an increase in supply in the economy.

Hence this answers our question by saying that When supply increases, the supply curve  shifts to the right.

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5 0
1 year ago
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5 0
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In a simple economy in which prices are constant and with no income taxes or imports, the marginal propensity to consume is 0.8.
lutik1710 [3]

Answer: Increase by $250

Explanation: As per the general rule of economics when there is an increase in income, that increase will eventually lead to increase in expenditure.

As, there is an increase in investment in the given case so it will result in increase in income for the economy.

We can compute it  as :-

change\:in\:income=\frac{change\:in\:investment}{1-MPC}

change\:in\:income=\frac{\$50}{1-0.8}

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Therefore, the expenditure would increase by $250

5 0
3 years ago
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