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lana66690 [7]
2 years ago
6

When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely,

this will cause business firms, ceteris paribus, to A) plan to increase investment in the future to compensate for the higher tax rate. B) decrease investment because they would expect lower benefits from investment. C) not change their investment plans because higher corporate profit taxes will not change the demand for their product. D) increase investment because the higher corporate profits tax will increase the return on any investment.
Business
1 answer:
12345 [234]2 years ago
5 0

Answer:

B) decrease investment because they would expect lower benefits from investment.

Explanation:

The Democratic party refers to one of the major political parties in the United States of America. It was founded on the 8th of January, 1828 and has its headquarter in Washington DC, USA.

Also, a democratic nominee is an individual who is the flag bearer or official candidate of the democratic party by virtue of being selected by the delegates of the party. In order to become the winner of a democratic election, the nominee are expected to go around to campaign for votes from the electorates.

When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely, this will cause business firms, ceteris paribus (all things being equal), to decrease investment because they would expect lower benefits from investment.

This ultimately implies that, business owners would be discouraged in investing in businesses due to an increase in the corporate tax.

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On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. T
Mariulka [41]

Answer:

Income statement using absorption costing.

Sales                                                                                   $756,000

Less Cost of Goods Sold  

Opening Stock                                           $0

Total Manufacturing Costs                  $655,000

Less Closing Stock                              ($104,800)          ($550,200)

Gross Profit                                                                       $205,800

Less Operating Expenses

Selling and administrative expenses:

Variable                                                $35,000

Fixed                                                      $10,500              ($45,500)

Net Income                                                                        $160,300

Explanation:

The Product cost is the to total of all manufacturing costs.

5 0
2 years ago
Speaker City designs and manufactures high-end home theater speakers. Speaker City uses a standard overhead rate of 2.0 hours pe
olya-2409 [2.1K]

Answer:

$18,100 unfavorable

Explanation:

The computation of the total variable overhead variance is shown below:

Total variable overhead variance = Standard variable overhead cost - Actual variable overhead cost

where,

Standard variable overhead cost is

= 2 hours × 400 units × $8 per hour

= $6,400

And, the actual variable overhead cost is $24,500

So, the  total variable overhead variance is

= $6,400 - $24,500

= $18,100 unfavorable

Since the actual variable overhead cost exceeds then the standard variable overhead cost so it reflects the unfavorable variance

8 0
3 years ago
Mead Company uses a perpetual inventory system and engaged in the following transactions during the month of May: Date Transacti
Kazeer [188]

Answer:

Explanation:

The journal entries are shown below:

May 1

Cash A/c Dr $6,300

       To Sales revenue A/c $6,300

(Being the cash sales is recorded)

May 1

Cost of goods sold A/c Dr $3,700

       To Merchandise inventory A/c $3,700

(Being the cost of the inventory is recorded)

May 5

Merchandise inventory A/c Dr $2,000

        To Account payable A/c $2,000

(Being the merchandise on account is recorded)

May 9

Account receivable A/c Dr $3,300

                To Sales revenue $3,300

(Being the goods are sold on credit)

May 9

Cost of goods sold A/c Dr $1,900

           To Merchandise inventory A/c $1,900

(Being the merchandise of inventory is recorded)

May 13

Sales salaries expense A/c Dr $900

Office salaries expense A/c Dr $600

      To Cash A/c $1,500

(Being the expenses are recorded)

May 14

Account payable A/c Dr $2,000

    To Cash A/c $2,000

(Being the amount is paid)

May 18

Equipment A/c Dr $8,000

      To Cash A/c $2,000

      To Account payable A/c $6,000

(Being equipment is purchased on account and on cash is recorded)

May 21

Inventory A/c Dr $600

    To Cash A/c $600

(Being the purchase of inventory is recorded for cash)

May 26

Cash A/c Dr $2,600

    To Land A/c $1,900

    To Gain on sale of land A/c $700

(Being the land is sold)

4 0
3 years ago
Jupiter Satellite Corporation earned $29 million for the fiscal year ending yesterday. The firm also paid out 30 percent of its
Arturiano [62]

Answer:

11.13%

Explanation:

Calculation to determine the required rate of return on the stock

Using this formula

Required rate of return=Last EPS*Payout*(1+RoE*(1-payout rate))/Current Price+RoE*(1-payout rate)

Let plug in the formula

Required rate of return=29/2.6*30%*(1+11%*(1-30%))/105+11%*(1-30%)

Required rate of return=11.13%

Therefore the required rate of return on the stock will be 11.13%

7 0
2 years ago
DM Corporation has provided you with the follwing budgeted income statement for one of its products:
Arturiano [62]

Answer:

A) operating income decreases by $84,000

Explanation:

Sales $700,000  ⇒ ELIMINATED, SINCE THE PRODUCTS WILL NOT BE SOLD ANYMORE

Variable Expenses ($430,000)   ⇒ ELIMINATED, SINCE THE PRODUCTS WILL NOT BE SOLD ANYMORE

Fixed Expenses ($310,000)   ⇒ REDUCED BY 60% TO ($124,000)

Operating Loss ($40,000)  ⇒ INCOME WILL DECREASE IN TOTAL BY $124,000

Since the total decrease income will be $124,000, that represents = $124,000 (unavoidable fixed costs) - $40,000 (current loss) = $84,000 in additional losses

5 0
3 years ago
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