Interest rates would increase since the tax-exempt status of municipal bonds would lose some of its appeal and there would be less of a market for them as a result of the lower income tax rates.
When the income tax rate is reduced for municipal bonds, the value of the bonds will also decline because the tax-exempt status for the bonds will also be reduced as a result of the lower income tax rate. Additionally, it lessens the demand for municipal bonds.
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Answer:
d. Revenue of $375
Explanation:
The amount paid by the Vetmed associates is an expense for associates
The amount received by statisticians is a revenue for them
Mackie Services an intermediate between the two and so, the percentage amount received by Mackie Services is a revenue
Mackie's income statement would include a revenue of:
= Amount paid to statisticians * % Received
= $1,500 * 25%
= $375
<h2>
Answer: $78,00</h2>
Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?
Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?
Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?
Explanation:
Answer:
Discount on bonds issuance = $15750
Explanation:
A bond is issued at a discount when the issue price of the bond is less than the face value of the bond. This usually happens when the coupon rate paid by the bond is less than the market interest rate. To calculate the amount of discount on bonds issuance, we simply deduct the issue price from the face value of the bond. Thus,
Discount on Bonds = Face value - Issue price
As we know the face value of the bonds is $700000 and the issue price is $684250, we can calculate the discount on issuance to be,
Discount on bonds issuance = 700000 - 684250
Discount on bonds issuance = $15750
Answer:
Option (C) is correct.
Explanation:
In an unregulated market, negative externality results in a higher social marginal cost than the firm marginal cost because this market is not properly regulated by the government officials. Hence, these firms are not taking into account the effect of negative externalities in their cost.
We know that the consumer's decision is more offenly based on the point where the marginal cost is equal to the marginal benefit because they are not taking the impact of negative externalities.
If proper action is not taken by the government, negative externality will result in a market inefficiencies.