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3 years ago

Match each type of tax with an example of its use.

Business

1 answer:

Fofino [41]3 years ago

8 0

Answer:

Excise tax :$0.30 tax on a gallon gasoline

Consumption tax : 20% tax on wages earned

Income tax : 9% tax on the sale of luxuries

Explanation:

Excise tax are the taxes charged to individuals on purchase of certain goods. Excise taxes are included with the price of the product. One of the major excise tax is charged on the gasoline for vehicles.

Consumption tax are the indirect taxes that are charged on usage of goods and services. They are collected in the form of sales tax and value added tax.

Income tax is the tax collected by the government for earning money through business or work.

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Why do you think the Federal government taxes long-term capital gains and qualified dividends at a lower rate than earned

shusha [124]

Answer:

The justification for a lower tax rate on capital gains relative to ordinary income is threefold: it is not indexed for inflation, it is a double tax, and it encourages present consumption over future consumption. ... Future personal consumption, in the form of savings, is taxed, while present consumption is not.

Explanation:

8 0

3 years ago

Frost Enterprises buys a warehouse for $ 510,000 to use for its East Coast distribution operations. On the date of the purchase

12345 [234]

Answer:

$510,000.00

Explanation:

Since the historical cost principle states that business must account and record most assets at their purchase or acquisition price which means the data put into record on the balance sheet would reflect amount paid for asset.

That is why it is $510000.

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3 years ago

Intrest paid by the firm to borrow capital is called what??

Yuki888 [10]

Answer:

It is called borrowed capital

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3 years ago

In the distribution channel for Pizza Hut, channel members are linked by legal agreements that spell out the obligations and rig

Harman [31]

Answer:

Contractual vertical

Explanation:

Contractual vertical involves a collaboration between different firms in production and distribution to take advantage of economies of scale that would have not been possible individually.

Contractual agreements are made to eliminate channel conflicts.

In this scenario channel members in distribution for Pizza hut have legal agreement that spells out the obligations band rights of each member. This is an example of contractual vertical.

7 0

3 years ago

Read 2 more answers

Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2015. The company does

Margarita [4]

Answer:

Transaction in 2015:

Nov 1 2015

Dr Loan Receivable 30,000

Cr Cash 30,000

( to record loan to Manny Lopez)

Dec 11 2015

Dr Account Receivable 6,750

Cr Sales 6,750

(to record sales on account to Ralph Kremer)

16 Dec 2015

Dr Note Receivable 4,000

Cr Account Receivable 4,000

(to record note receipt in exchange for receivable from Joe Fernetti)

31 Dec 2015

Dr Interest Receivable 553

Cr Interest Income 553

The collection of the Lopez note at its maturity in 2016:

Nov 1 2016:

Dr Cash 33,042

Cr Interest Receivable 508

Cr Loan Receivable 30,000

Cr Interest income 2,534

( to record collection of loan from Lopez)

Explanation:

Transaction in 2015:

Nov 1: Cash loan is made so Cash decrease (Cr) and Loan Receivable increase (Dr)

Dec 11: Sales on account so Account receivable increases (Dr) and Sales increases (Cr)

Dec 16: Note is received in exchange of receivable, so Note receivable increases (Dr) and Receivable decreases (Cr)

Dec 31: Total interest income accrued on loan/receivables is recorded as Dr Interest receivable ( increase) and Cr Interest income (increase) and is calculated as:

Loan to Lopez + Receivable from Ralph + Receivable from Joe = 30,000 x 10% x 61/360 + 6,750 x 8% x 20/360 + 4,000 x 9% x 15/360 = 553.

The collection of the Lopez note at its maturity in 2016:

Total cash receipt = Principal + interest expenses = 30,000 + 30,000 x 10% x 365/360 = $33,042 and is recorded as Dr.

Interest income recorded in Interest receivable account in 2015 should be clear (Cr) at the amount of 30,000 x 10% x 61/360 = 501.

Another interest income earned in the year of 2016, calculated as 30,000 x 10% x (365-61)/360 = 2,534 is recorded ( Cr);

Loan receivable is cleared (Cr) at the principal amount of $30,000.

4 0

3 years ago