Pharoah Company purchased machinery on January 1 at a list price of $270000, with credit terms 2/10, n/30. Payment was made with
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Answer:
The income before tax is $370450, the income tax is $111135 and the net income is $259315.
Explanation:
As the data table is not visible,online a similar question is found for which the data is attached here with.
From the given data
Service Revenue=$943,000
Interest Revenue=$127,1000
Total Revenue=Service Revenue+Interest Revenue=$1070100
Now The expenses are given as
Supplies Expense=$349,200
Repairs and Maintenance Expense =$258,300
Depreciation Expense=$60,350
Rent Expense=$ 31,800
Total Expense=Supplies Expense+Repairs and Maintenance Expense+Depreciation Expense+Rent Expense=$699650
So the income before tax is given as
Income=Total Revenue-Total Expense
Income=$1070100-$699650
Income=$370450
So the income before tax is $370450.
Now the tax is estimated at 30% as given tax rate as
Tax=Rate*Income
Tax=30%*$370450
Tax=$111135
So the income tax is $111135.
Now the Net income is given as
Net Income=Income-Tax
Net Income=$370450-$111135
Net Income=$259315
So the Net Income is $259315.
Answer: B - a general improvement in technology affecting production of all goods
Explanation: The Production Possibility Frontier is a curve that shows the two combination of goods an economy can produce when all its factors of production are efficiently used.
Technological progress shifts the curve outward, away from the origin as more output would be produced using the same combination of factor inputs.
Shifting of resources from butter to gun would lead to movements along the curve as more gun would be produced and less butter.
Pacifism becoming less popular which increases gun production, would cause movement along the curve.
Increase in consumer desire for butter increase the amount of butter produced . This would generate a movement along the curve
