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3 years ago

Creditor beneficiaries can enforce their rights under a contract whenever the contract is valid.

1 answer:

4 0

It is not false that a creditor beneficiaries can enforce their rights under a contract whenever the contract is valid, it because the beneficiaries can enforce their own rights under the contract. So the correct answer is a, true.

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Given the following for the QRS Company: Assume QRS elects the carryback provision in 2017 and that future income is "more likel

Fudgin [204]

Complete Question:

Given the following for the QRS Company:

Year Pre-Tax Net Tax Rate

Income (Loss)

2015 $10,000 20%

2016 8,000 20%

2017 (20,000) 20%

2018 12,000 20%

Assume QRS elects the carryback provision in 2017 and that future income is "more likely than not." 12/31/18 Income Tax Payable is:

Select One:

a. $2,400

b. $2,000

c. $11,600

d. $9,600

e. $400

Answer:

QRS

12/31/18 Income Tax Payable is:

b. $2,000

Explanation:

a) Data:

QRS Company:

Year Pre-Tax Net Tax Rate

Income (Loss)

2015 $10,000 20%

2016 8,000 20%

2017 (20,000) 20%

2018 12,000 20%

b) QRS can recover the loss from the 2015 and 2016 net income in the sum of $18,000 ($10,000 + $8,000) and then carry forward $2,000 against 2018 net income. Therefore, the taxable income for 2018 will be $10,000 ($12,000 - $2,000). The income tax payable is $2,000 ($10,000 * 20%).

8 0

4 years ago

Fiscal policy is Question 20 options: the money supply policy that the Fed pursues to achieve particular economic goals. the spe

laiz [17]

Answer:

the spending and tax policy that the government pursues to achieve particular macroeconomic goals.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

Fiscal policy typically includes the spending and tax policy that a government pursues in order to achieve particular macroeconomic goals such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.

Generally, an economy will return to its original level of output (production) and price level when the short-run aggregate supply curve falls (decreases) and no changes in monetary and fiscal policies are implemented.

7 0

3 years ago

Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per uni

nataly862011 [7]

Answer:

Option $18,262

Explanation:

Data provided in the question:

Budgeted production units for July = 7,900

Budgeted production units for August = 8,100

Direct material required per unit = 2 ounces

safety stock of direct materials = 20% of the units budgeted in the following month

Direct material in inventory at the start of July = 3,160 ounce

Materials cost = $1.15 per ounce

Now,

Budgeted material required in July

= Budgeted production units for July × Direct material required per unit

= 7,900 × 2

= 15800 ounces

Budgeted material required in August

= Budgeted production units for August × Direct material required per unit

= 8,100 × 2

= 16,200 ounces

Direct materials requirement in July

= Budgeted material required in July + safety stock - Direct material in inventory at the start of July

= 15800 + (20% of 16,200 ) - 3,160

= 15800 + 3,240 - 3,160

= 15,880 ounces

Cost of direct material

= Direct materials requirement in July × Materials cost

= 15,880 ounces × $1.15 per ounce

= $18,262

Option $18,262

3 0

3 years ago

If the company plans to amortize these costs according to gaap, what amount of start-up costs should be amortized in 2017, assum

DerKrebs [107]

<span>There are no differences in accounting between research costs and development costs. Research costs are capitalized and amortized over the life of the project, whereas development costs are expenses as incurred. Research costs are capitalized and amortized until the product goes to market, whereas development costs are capitalized and amortized from the time the product hits the market until the product is withdrawn from the market. Research costs are expended as incurred, whereas development costs are capitalized and amortized over the life of the new product</span>

8 0

3 years ago

The problem with adopting a fair-return pricing policy for a natural monopoly is that Multiple Choice economic profits will be p

ASHA 777 [7]

Answer:

it is not allocatively efficient

Explanation:

Monopoly is a market condition where one seller has all the market share. This leads to an inefficient market structure, an increase in the prices of goods and services and abnormal profits. A problem with adopting a fair return polity for a natural monopoly is that it is not allocatively efficient. In a monopoly, goods and services are not produced to help the economy or people.

7 0

3 years ago