Answer:
B) Only statement II is correct.
- II. Has $20,000 of taxable income from Corporation Z.
Explanation:
One of the disadvantages of a C Corporation is that their owners (stockholders) are double taxed. That means that the corporation is taxed and then the stockholders are taxed depending on the dividends that they receive. In this case, Walter has $10,000 of taxable income from Corporation X (= $50,000 x 20%).
On the other hand, sole proprietorships, partnerships, limited liability companies and S Corporations are not taxed, they are pass through entities whose owners are taxed directly. In this case, Walter owns 20% of Corporation Z, therefore he must pay taxes on 20% of taxable income = $100,000 x 20% = $20,000.
Answer:
A) Marginal private cost= 50
B) Total Marginal social cost to society = 70
Explanation:
A) In order to find the marginal private cost we will use the firms production cost formula as it is the private cost that the firm is enduring and is only relevant to the firm's cost and not the society's cost.
In order to find the marginal unit cost of the 10th unit produced will will replace Q in the formula by 10 as it represents quantity.
MC= 10 + 4Q
MC= 10 + 4(10)
MC= 10 +40 = 50
B) In order to find the marginal cost to society we will add the marginal external cost of the 10th unit to its private cost. We already know the marginal private cost is 50 now we need to find the marginal external cost to it to find the total marginal cost.
Marginal external cost = 2Q
Q= 10
Marginal external cost = 2*10 =20
The total Marginal cost to society= 50 + 20= 70
Answer:
C) Drawer
Explanation:
A drawer is an individual or institution that issues and signs a bill of exchange instructing a bank or drawee to pay the specified amount to the payee. The drawer is the person who writes and signs a cheque to a third party or payee. In a situation where the cheque is to pay oneself, the drawer is the same as the payee.
Rover and Associates is the drawer. The law firm issues the cheques instructing Portris Bank to pay the office manager the amount stated in the cheque. The office manager is an employee of Rover and Associates. The cheque may be written to Rover and Associates. If that is the case, Rover and Associates is first the drawer and the then the payee. Portis bank is the drawee.
Answer:
A. Supplier power is increased, because suppliers will be able to charge higher prices for their inputs
Explanation:
Answer:
$29,750
Explanation:
Given that
Borrowed amount = $350,000
Interest rate = 8.5%
The computation of interest expense is shown below:-
Interest expense in the first annual payment = Borrowed amount × Interest rate
= $350,000 × 8.5%
= $29,750
Therefore, for computing the interest expense in the first annual payment we simply multiply borrowed amount with interest rate.
