Answer:
D. $50,400
Explanation:
The computation of the deferred tax liability is shown below:
= Insurance expense for taxation purpose × rate of tax
= $126,000 × 0.40
= $50,400
Hence, the deferred tax liability is $50,400
Therefore the correct option is C.
Hence, the same is to be considered by applying the above formula in order to determine the accurate amount
Answer:
In appraising, land is never depreciated, as are buildings.
Explanation:
Generally land and buildings are separable assets and are been accounted for separately, even when acquired together.
In the other hand, land asset is not depreciated, because it is considered to have an infinite useful life. This distinctively makes it unique amongst all asset types; it is the only one for which depreciation is prohibited.
Nearly all fixed assets have a useful life, after which they no longer contribute to the operations of a company or they stop generating revenue. During this useful life, they are depreciated, which reduces their cost to what they are supposed to be worth at the end of their useful lives (which is known as salvage value). Land, however, has no definitive useful life, so there is no way to depreciate it.
There are a lot of ways that you can do to determine if an email address is a valid one or a fake one. You can either send a message to the email address, search it on the internet, or check it on some email verification websites. However, one of the best ways that you can do is that you should check the location of the email address. By doing this method, you will be able to determine where it came from which will prove that it is a valid email address.
Question:
Suppose the utility function for a firm manager is U = π+ bQ, where Q is output, π is profit, and b is a positive constant. How would the firm's output compare with what it would be if the manager's objective was to maximize profit?
A. It would be greater than the profit-maximizing output.
B. It would be less than the profit-maximizing output.
C. It would be the same as the profit-maximizing output.
D. None of the statements associated with this question are correct
Answer:
The correct choice is A.
If the utility function for a firm manager is U = π + bQ, where Q is output, π is profit, and b is a positive constant. It would be greater than the profit-maximizing output.
Explanation:
Economic theory normally uses the profit maximization assumption in studying the firm just as it uses the utility maximization assumption for the individual consumer. This approach is taken to satisfy the need for a simple objective for the firm. This objective seems to be the most feasible.
The profit-maximizing firm chooses both inputs and outputs so as to maximize the difference between total revenue and total cost.
The firm will adjust variables under its control until it cannot increase profit further. Thus, the firm looks at each additional unit of input and output with respect to its effect on profit.
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