1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anestetic [448]
3 years ago
7

Jurisdiction B levies a flat 7 percent tax on the first $5 million of annual corporate income. Required: Jersey Inc. generated $

3.9 million income this year. Compute Jersey’s income tax and determine its average and marginal tax rate on total income. Leray Inc. generated $9.6 million income this year. Compute Leray’s income tax and determine Leray’s average and marginal tax rate on total income. What type of rate structure does Jurisdiction B use for its corporate income tax?
Business
1 answer:
Pie3 years ago
6 0

Answer:

a. Jersey Inc. generated $3.9 million income this year.

Income tax

= 3.9 million * 7%

= $273,000

The Average tax rate

= Tax/ Income

= 273,000/3.9 million

= 7%

<em>Marginal tax is the additional tax per dollar. As this is less than the $5 million threshold, it is 7%</em>

b. Leray Inc. generated $9.6 million income this year.

Income tax

= 5 million * 7%

= $350,000

The Average tax rate

= Tax/ Income

= 350,000/9.6 million

= 3.6%

Marginal tax is the additional tax per dollar. As this is more than the $5 million threshold, and they do not have to pay any more tax, the Marginal rate is 0%.

c. What type of rate structure does Jurisdiction B use for its corporate income tax?

<u>Regressive Rate structure</u>

In this regime, the average tax decreases as the income earned increases. Looking at Leray Inc, this appears to be the case so this is a Regressive Rate Structure.

You might be interested in
[based on the results of the simulation, can policy market interventions cause a change in consumer or producer surplus? explain
WITCHER [35]

When the intervention rises the price stage of goods, then the incentive to supply extra desires increases and consequently growing manufacturers' surplus. So policy market can motivate both client and producer surplus.

A tax causes consumer surplus and producer surplus (earnings) to fall.. some of those losses are captured inside the tax, however, there may be a loss captured with the aid of no celebration—the value of the devices that could be exchanged had been there no tax. those lost gains from trade are called deadweight losses.

For each monetary transaction, there can be both producer surplus (or profit) and client surplus. The mixture–or blended–a surplus is called the economic surplus.

Learn more about policy market here: brainly.com/question/25754149

#SPJ4

6 0
1 year ago
How can marketing affect the society?
k0ka [10]

Answer:

Marketing drives a consumer economy, promoting goods and services and targeting consumers most likely to become buyers. Higher sales for a business that employs successful marketing strategies translate into expansion, job creation, higher tax revenue for governments and, eventually, overall economic growth.

3 0
3 years ago
How important is structure/culture compared to the other primary internal considerations for a strategic plan?
ZanzabumX [31]

Explanation:

The organizational structure and culture are essential for the design of a strategic plan aligned with the organization's purpose.

What happens is that the structure and culture of an organization constitute its identity, its way of organizing itself and creating an environment designed to obtain the objectives and goals stipulated by strategic planning. So it can be said that there is no way to develop a strategic plan without considering the structure or culture, because it is through these two variables that action plans are developed and modeled according to what the company is, and what it plans to be in the future. All organizational systems must be foreseen in the planning and be developed with the same degree of importance, because together they form the organizational whole that will lead a company to be well positioned in the market, achieve continuous improvement in its processes, achieve competitive advantage in the market, etc.

7 0
3 years ago
Suppose in the short run a firm’s production function is given by Q = L 1 2 K 1 2 and that K is fixed at K = 10. If the price of
Furkat [3]

The firm’s marginal cost of production when the firm is producing 50 units of output is 33.33

Solution:

The production function is Q = \sqrt{L * K}

The initial value is 10 units. The production value is 50 units The manufacturing cycle needs work as stated below.

Q = \sqrt{L * K}

Q = \sqrt{L * 10}

L = (\frac{Q}{3.162} )^{2}

The wage rate is $15 . The following is the expense of the manufacturing process.

TC = P_{L} * L + P_{K} * K

TC = ( 15 * (\frac{Q}{3.162} )^{2} ) + [ P_{k * 10}]

The marginal production cost is really the increase in manufacturing costs as output increases by 1 point.

As listed below, the marginal cost:

TC = ( 15 * (\frac{Q}{3.162} )^{2} ) + [ P_{k * 10}]

MC = \frac{TC}{Q} = \frac{2Q}{3}

MC = \frac{2*50}{3} = 33.33

6 0
3 years ago
During winter, red foxes hunt small rodents by jumping into thick snow cover. researchers report that a hunting trip lasts on av
Hatshy [7]

In this report, there are three variables being mentioned. These are:

1st variable = 19 minutes

2nd variable = 7 jumps

3rd variable = 79%

 

In this problem, I believe what we are asked to do is to identify the type of variable the 2nd variable is. We are given that the 2nd variable is “7 jumps”.  This means that the 2nd variable is quantitative because it refers to or relating to a measurement of something rather than the quality. We also know that jumps can only take whole numbers, not decimal. Therefore it is also discrete. Hence, the 2nd variable is:

quantitative and discrete

6 0
4 years ago
Other questions:
  • Which type of economy provides the least incentive for companies and workers to improve?
    14·2 answers
  • What are three elements that can be shared by subdocuments in a master document?
    11·1 answer
  • Maria and Jon Sanchez have just completed their third annual set of financial statements. They met in a personal finance class a
    12·1 answer
  • Dillon has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Dillon used 3,100 pounds o
    8·1 answer
  • Cycle counting A. involves shutting down production once per year to perform the annual inventory count. B. is a process by whic
    5·1 answer
  • (question in attached image)
    7·1 answer
  • In a press conference, the president of a small country displays a chart showing that GDP has risen by 10 percent every year for
    10·1 answer
  • How did you find the total expense?
    14·1 answer
  • Crispin Mattresses is chartered in Florida but does business in all 50 states. Crispin Mattresses doing business in Florida is k
    13·1 answer
  • armon apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. the company has only n
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!