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3 years ago

The main difference between sales and excise taxes is that:______.

Business

1 answer:

weqwewe [10]3 years ago

6 0

Answer:

Explanation:

A tax is a compulsory amount levied on the goods and services by the government or an agency of the government. Taxes increase the cost of a product

A consumption tax is a tax that is levied on those that consume goods and services rather than produce goods and services

Examples of consumption tax :

excise tax
sales tax

A sales tax is an example of consumption tax. It is levied on the sales of goods and services. It is usually levied at the point of sale. An example is the value added tax.

An excise tax is a tax levied on certain goods and services at the point of sale e.g. tobacco

Differences between excise tax and sales tax

An excise tax applies to a select list of products while a sales tax applies o a wide range of products
Excise tax is levied on a per unit basis while sales tax is levied as a percentage of purchase price

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Carlos is risk-neutral and has an ancient farmhouse with great character for sale in Slaterville Springs. His reservation price

andreyandreev [35.5K]

Answer:

The question is not complete, this part could complete the question:

"If Realtors charge a commission of 5 percent of the selling price and all Realtors have opportunity costs of $2,000 for negotiating a sale, will Carlos hire a Realtor? If so, how will total economic surplus be affected?"

The answer is, the total economic surplus increased from $20,000 to $248,000

Explanation:

Firstly it is important to understand what <em>marginal cost, marginal benefit </em>and <em>Asymmetric information </em>is. Marginal cost is the cost added from the spending of one more unit of resource while marginal benefit is considered as the benefit from spending one more unit of resource. Asymmetric information is a situation whereby one part of the transaction possess more information and material facts than other parts.

Carlos reservation price is $130,000. He wishes to sell to sell for $140,000 to Whitney who has a reservation price of $150,000. Therefore the surplus to Carlos is 140,000 - 130,000 = $10,000 and surplus to Whitney is 150,000 - 140,000 = $10,000. Therefore, the total economic surplus is $20,000

If Carlos sells through a realtor who charges 5% if the property is sold for $300,000 to someone with a reservation price of $350,000. The surplus will be:

5% × 300,000 - 2000 = $13,000.

Now, the surplus is 300,000 - 130,000 + 15,000 = $185,000

Therefore, the surplus to the buyer is

350,000 - 300,000 = $50,000

Hence, the total economic surplus increased from $20,000 to $248,000

5 0

3 years ago

Wegmans sends deli employees to france to learn about cheese. wegmans is attempting to meet ____ needs.

Iteru [2.4K]

I would say that wedgemans is trying to meet employees needs for development of their knowledge and for in this case the privilege of going to learn about the types of cheeses and perhaps their making in another country which is an additional benefit and which will most likely encourage the employees to work more effectively and with more interest in their work.

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4 years ago

Tim, who is subject to a 35 percent marginal gift tax rate, made a gift of a painting to Ben, valuing the property at $7,000. Th

kherson [118]

Answer:

The undervaluation penalty is $560

Explanation:

Solution

Under valuation penalty applied when a person valued assets understated to save tax.

The undervaluation reduces the tax and hence comes with accuracy related penalty.

From the example, Tim undervalued the gift of $7,000 which is valued at $15,000 by IRS.

The deduction is undervalued for more than 150% and hence penalty is assessed. this is so because the income tax valuation is lower than 40%, so the penalty rate is 20%

Thus,

The calculation of overvaluation penalty is given below:

Undervaluation = $8000

Tax rate = 35%

Tax amount = $2,800

Penalty rate = 20%

Penalty on undervaluation is =$560

Therefore, the undervaluation penalty is $560

5 0

3 years ago

"Elasticity" is often considered a core justification for the adoption of cloud computing, primarily due to the fact that it is

Airida [17]

Answer:

and proportional costs benefit (true)

Explanation:

Human beings tend to be rational beings, and as such we behave when we go shopping. If a company raises the price of a product, the company will sell fewer units of that product and, in the same way, if the product is cheaper, it can have more sales.

But more or less sales does not mean more or less revenue for the company. If this were the case, all companies would simply limit themselves to lowering the price with sufficient margin to obtain greater benefits. Actually, there is a way to know what the price would be that would maximize the income of the product and therefore the benefits. It is the so-called elasticity of demand.

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4 years ago

Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs Septembe

sergeinik [125]

Answer:

Explanation:

Delivery costs are mixed and utilities are variable.

Variable costs are cost that changes in direct proportion to the level of production. This means that when the variable cost increases then more units are produced and decreases when less units are produced.

Mixed costs also known as semi-variable costs have properties of both fixed and variable costs due to the presence of both variable and fixed components in them.

In this case utilities is a variable cost, it increases as the units increase, while delivery cost is a mixed cost, it has the element of both fixed and variable.

A fixed cost does not change with the level of activity it remains the same.

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4 years ago