Answer:
$30,560
Explanation:
The computation of the income tax expense for the year 2016 is shown below:
= Taxable income × enacted tax rate
= $152,800 × 20%
= $30,560
Simply we multiply the taxable income with the enacted tax rate so that the correct amount of income tax expense can come
All other information which is given is not relevant. Hence, ignored it
Answer:
See below
Explanation:
The donation will increase the assets and the owners' equity. Land and building are assets. An increase in assets is debited.
Donations received are equivalent to 'income' to the business. They add to equity. An increase in equity/capital accounts is credited.
The journal entry will be
Land A/c DR. $39,000
Building A/c DR.$395,000
Donations received A/c CR.$434,000
Answer:
(A) 22,222.22
(B) 57,142.86
Explanation:
we will divide the deposit by the reserve requirement to know how much will expand the money supply.
4,000/0.18 = 22,222.22
4,000/0.07 = 57,142.86
The reasoning behind this multiplier effect is the following:
you deposit 4,000
the bank leave 18% = 920
And lend the remaninder: 3,080
Then, when this are deposit, again takes the minimun reserve and lend the remainder:
3,080 x 18% = 554.4
3,080 - 554.4 = 2,525.6
This process is repeated giving diminished amount to money available to lend. Thus, finding a limit on the division between fund and reserve requirement.
4,000/0.18 = 22,222.22
Answer:
a) Inform you that you have won the lottery or a large prize.
Answer:
Skimming
Explanation:
Price skimming, also known as skim pricing, is a pricing strategy used by those who face little or no competion, what normally happens is that a firm charges a high price and then gradually may need to lowes the price to attract more customers.
Price skimming is used to earn large profits especiallyn when a new product or service is introduced into the market. The pricing strategy is largely useful iwhen the firm is the first to enter the marketplace. The aim of this is to generate the large profit in the shortest time possible.
