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Virty [35]
3 years ago
8

What would happen if a state or municipality suddenly lost its tax base? Explain if this would have any impact on it's cost of b

orrowing funds. Why?
Business
1 answer:
Yuri [45]3 years ago
3 0

Answer:

Following are the responses to the given question:

Explanation:

The tax base seems to be the amount that is added to both the income tax, that is which tax rate is the percentage of national economy collected as just a tax. Consequently, it is important to find an income tax that understands the tax base.

Whether this amount of tax would pay is not declared or decided if the state or city suddenly loses its local economy.

Impact mostly on the cost of credit

Its cost of debt before tax rebate funds = interest amount on the debt – any reduction in income tax which rose because of deductible profits. The costs of lending are real games calculated in anticipation of tax, however, the difference is DEDUCTIBLE in INTEREST EXPENSES.

This tax rate also increases the cost of lending and gives more income protection.

It's because when taxes become available, the company can save money on tax returns as it ultimately removes some profits.

Conclusion:

However it is lost about the tax base, however, the judgment could not be made afterward the amount to borrow as debt could be evaluated of that "TAX REVENUE OFFSET."

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An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.
Mademuasel [1]

Answer:

B) False

Explanation:

That would be a monopoly (only one supplier).

An oligopoly is a market where there are very few suppliers, and competition is very limited since the barriers to entry are very significant.

For example, the automobile industry is an oligopoly. There are only a few car manufacturers in the world, and they all are very large corporations. It costs hundreds of millions of dollars to introduce a new car model, and every time that happens, the corporations must carry on expensive advertising and promotional campaigns.

4 0
3 years ago
A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be pe
faust18 [17]

Answer:

A. the FCAC is less than the TBC

Explanation:

If the amount of cumulated actual costs is less than difference between the total budgeted cost and the re-estimate, then the FCAC is less than the TBC

3 0
3 years ago
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same
Arte-miy333 [17]

Answer:

                                                            Fatboy         Screamer          Total

Direct labor                                 .   $ 2,000,000   $ 4,000,000   $ 6,000,000

Indirect materials                        .       $600,000    $1,200,000    $1,800,000

Other overhead                          .    $1,400,000   $2,800,000    $4,200,000

Materials cost                              .    $4,000,000  $12,000,000   $16,000,000                                                          

Total cost                                     .   $8,000,000 $20,000,000 $28,000,000

Number of units                           .       2,000              4,000               6,000

Unit cost                                       .      $4,000            $5,000            $4,667

Explanation:

Assign the Material Cost to the Products appropriately. The conversion costs musts be allocated based on the number of units assembled. Conversion costs is the sum of Direct Labor and Manufacturing Overheads (Indirect Costs).

7 0
2 years ago
Problem 12-04A The income statement of Kingbird, Inc. is presented here. Kingbird, Inc. Income Statement For the Year Ended Nove
barxatty [35]

Answer:

Cash Flow From Operating Activities

Cash Receipt from Customers                       $7,260,000

Cash Paid to Suppliers and Employees       ($6,294,700)

Cash Provided by Operating Activities            $965,300

Explanation:

Step 1 : Cash Paid to Suppliers and Employees Calculation

Cost of goods sold                                         $4,987,300

Add Operating expenses                                $1,120,500

Total                                                                 $6,107,800

Adjustments :

Depreciation expense                                        $95,300

Decrease in Inventory                                     ($536,700)

Increase in Prepaid Expenses                          $179,800

Decrease in Accounts Payable                        $345,700

Decrease in Accrued Expense Payable          $105,800

Cash Paid to Suppliers and Employees       $6,294,700

Step 2 : Cash Receipt from Customers Calculation

Sales revenue                                                $7,465,900

Less Increase in Accounts receivable          ($205,900)

Cash Receipt from Customers                      $7,260,000

4 0
3 years ago
In the long run, an increase in aggregate demand from a position of full employment leads to:
Bess [88]

higher prices and higher outputs

8 0
3 years ago
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