Answer:
The answer is D) will raise disposable income and raise spending
Explanation:
When taxes are cut disposable income increases as there is less income used to pay taxes. If there is a higher amount of disposable income available then spending will increase as well as spending appetite.
Cutting taxes is a easy way to stimulate spending in an economy.
The correct answer is therefore D) will raise disposable income and raise spending.
Cutting taxes can also increase aggregate demand which can lead to higher economic growth as well.
Answer:
b. They are treated differently because the loss in value of Carol's stock is the result of a sale, while the loss in value of Dave's stock is simply a decline in value.
Explanation:
Although the stock owned by Carol and by Dave declines in value by $2,000, however Carol only has a realized and recognized loss of $2,000. The main factor in determining whether a disposition has taken place often whether an identifiable event has occurred. In the current scenario, Carol’s stock sale qualifies as a disposition and the Dave’s stock value decline does not qualify as a disposition and is simply a decline in value.
Answer:
$10,000
Explanation:
Net Credit Sales $250,000
Allowance for Doubtful Accounts $250,000*4%=$10,000
Bad Debt Expense will be $10,000
Bad Debt Expense Dr.$10,000
Allowance for Uncollectible Cr.$10,000
Answer:
Accrual shows face amount as revenue
revenue = $25,000
(12,000) (7/36)= $2,333 (regognized in 2017)
Total income reported in 2017 = $27,333
The next year she would show the remainder of 12,000 from 26 month contract
For tax purposes, max of 2 year deferral for payment recieved in advance.
Answer:
$168,400
Explanation:
Benders Gym repurchased their common stock at the rate of $140,000
Benders Gym pays a regular dividend of $18,500 four times in a year
For a period of one year 1,200 shares was issued at the rate of $38 per share
Therefore, the amount of cash flow to the stockholders for the past one year can be calculated as follows
=[18,500×4]-[1,200×38-(140,000)]
= 74,000-[45,600-140,000]
= 74,000-[-94,000]
= 74,000+94,000
= $168,400
Hence the amount of cash flow to the stock holders for a period of one year is $168,400
