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4 years ago

In terms of the tax formula applicable to individual taxpayers, which of the following statements, if any, is correct?

Business

1 answer:

creativ13 [48]4 years ago

7 0

Answer:

The correct answer is a. In arriving at taxable income, a taxpayer must choose between the standard deduction and itemized deductions.

Explanation:

In tax law, the tax base is the magnitude that results from the measurement of the taxable event. It is defined as the dimension or magnitude of an element of the objective budget of the taxable event that is judged as determining the relative contributory capacity.

In tax legal relations, the taxable event shows the existence of an economic capacity in the subjects, but for the tax to be applied, this fact must be assessed in some way, usually in monetary units.

The tax base is ultimately the magnitude that is used in each tax to measure the economic capacity of the subject, such that it is reflected in ceilings.

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A business formation is also known as:

Iteru [2.4K]

Business formation is also known as: a business attraction

5 0

3 years ago

Read 2 more answers

a. Depreciation on the company's equipment for the year is computed to be $11,000. b. The Prepaid Insurance account had a $9,000

Aleks [24]

Answer:

depreciation expense 11,000 debit

acc dep equipment 11,000 credit

insurance expense 7,430 debit

prepaid expense 7,430 credit

supplies expense 2,604 debit

supplies 2,604 credit

unearned revenue 8,000 debit

service revenue 8,000 credit

rent expense 3,730 debit

prepaid rent 3,730 credit

wages expense 3,000 debit

wages payable 3,000 credit

Explanation:

9000 insurance - 1,570 unexpired = 7,430 expired

supplies

beginning 420

purchased 2,680

ending (496)

consumed: 2,604

as the service were earned we decrease the unearned amount and recognzie our service revenue

we are given with the expired amount of the rent so we declare it.

same goes for wages, we are givne with the accrued amount

5 0

3 years ago

Simpson Corporation expects to sell the following number of units of their newest product: Year Unit Sales 1 8,000 2 9,000 3 12,

melomori [17]

Answer:

$27,000

Explanation:

Years Units Selling Sales NWC requirement Δ in Cash flows

sales price$ revenue$ 50,000 / 15% for NWC

0 - - - $50,000 $50,000

1 8000 180 1,440,000 $216,000 $166,000

2 9000 180 1,620,000 $243,000 $27,000

3 12000 180 2,160,000 $324,000 $81,000

4 15000 180 2,700,000 $405,000 $81,000

Note: Cashflow for NWC is derived by Cumulative difference in Cash flows for Present Year and previous year. Hence, the change in cash flow for the NWC balance at the end of year 2 is $27,000

3 0

3 years ago

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $84, and the book value per share is

Iteru [2.4K]

Answer:

Dinklage Corp.

a. The company's capital structure by book value:

Weights:

Equity = 9.84%

Debt = 90.16%

b. The company's capital structure by market value:

Weights:

Equity = 64.55%

Debt = 35.45%

Explanation:

a) Data and Calculations:

Outstanding common stock = 6 million shares

Current share price = $84

Book value per share = $5

Total equity book value = $30 million (6,000,000 * $5)

Total equity market value = $504 million (6,000,000 * $84)

First bond's face value = $145 million

Coupon rate = 5%

Selling price = 95% of par

Market value of first bond = $145 * 95% = $137.75 million

Second bond's face value = $130 million

Coupon rate = 4%

Market value = $130 * 107% = $139.1 million

Total market value of bonds = $276.85 million ($137.75 + $139.1)

Book value of bonds = $275 million ($145 + $130)

a. The company's capital structure by book value:

Equity = $30 million

Debt = $275 million

Total firm's value = $305 million

Weights:

Equity = $30/$305 * 100 = 9.84%

Debt = $275/$305 * 100 = 90.16%

b. The company's capital structure by market value:

Equity = $504 million

Debt = $276.85 million

Total firm's value = $780.85 million

Weights:

Equity = $504/$780.85 * 100 = 64.55%

Debt = $276.85/$780.85 * 100 = 35.45%

6 0

3 years ago

A country that currently does not trade with other countries could benefit by a. not restricting trade. b. restricting both impo

Akimi4 [234]

Answer:

The correct answer is letter "A": not restricting trade.

Explanation:

Hypothetically speaking a country that is not involved in any trading activity will not have to deal with restrictions. Besides, that country could focus on the specialization of domestic production. However, it is more than likely such a country will need the help of others in the attempt to satisfying the diverse needs of its inhabitants. Countries that prohibit exports and imports nowadays are <em>Cuba, North Korea, Iran,</em> and <em>Syria </em>just to mention a few.

5 0

3 years ago