Answer:
Option (B) is correct.
Explanation:
A supply shock is a situation in which the price of the natural resource increases which result in an increase in the cost of production of the goods. This increase in the cost of production of the goods induces the producers to produce less amount of goods which reduces the supply of goods. This will lead to shift the short run supply curve of the goods leftwards and therefore, there is an increase in the price of the goods.
Answer and Explanation:
The computation is shown below:
a. For delivery service product cost:
Indirect materials $6,500
Depreciation on delivery equipment $11,800
Dispatcher's salary $5,530
Gas and oil for delivery trucks $2,300
Drivers' salaries $17,100
Delivery equipment repairs $500
Total $43,730
b) For Period costs:
Property taxes on office building $920
CEO's salary $12,400
Advertising $4,700
Office supplies $710
Office utilities $1,040
Repairs on office equipment $270
Total $20,040
Answer:
True
Explanation:
"Nonliquidating corporate distributions are distributions of cash and/or property by a continuing corporation to its shareholders. At the shareholder level, a nonliquidating corporate distribution can produce a variety of tax consequences, including taxable dividend treatment, capital gain or loss, or a reduction in stock basis. [...]
The corporate-level tax consequences of a nonliquidating corporate distribution depend on whether the distribution consists of cash or property (other than cash). The corporation does not recognize gain or loss when it distributes cash to shareholders or when it redeems stock in exchange for cash payments."
Reference: Ellentuck, Albert B. “Understanding the Effects of Nonliquidating Distributions on Corporations.” The Tax Adviser, 1 Jan. 2009
Answer:
Explanation:
In the given transaction, the amount is received in advance for performing the service, so the journal entry would be
Cash A/c Dr $3,500
To Unearned revenue $3,500
(Being amount is received in advance)
For recording the advance transactions, we have to debit the asset account i.e cash account and credit the liability account i.e. unearned revenue account.
Answer:
a. makes normative statements.
Explanation:
In Economics there are two type of statements: positive statements and normative statements.
Positive statements describe an aspect of reality, while normative statements try to establish what ought to be about an aspect of reality.
For example, a positive statement is: the inflation rate is 4%.
While a normative statement is: the inflation rate should be between 3% and 4%.
When an economist uses normative statements, he is not only a scientist, but a policy adiviser as well, because he is using his knowledge to recommend actions that affect society, and that are political.