Answer:
When a taxpayer has an underpayment of estimated tax or fall behind on his/her tax prepayment, then he/she is required to pay a penalty on Form 2210. This penalty is called underpayment penalty.
According to the tax laws, Mr. P and Ms. S can avoid an underpayment penalty if their withholding's and estimated tax payments equal or exceed one of the following two safe harbors:
- 90 percent of current tax liability ($200,000 x 90% = $180,000)
- 110 percent of previous year tax liability (110% x $170,000 = $187,000)
From the above calculation, it is clear that Mr. P and Ms. S's withholding's ($175,000) do not equal or exceed the amount of two safe harbors. So, they need to increase their withholding's or make estimated payments to avoid underpayment penalty.
If Mr. P and Ms. S increase their withholding's by $5,000 or make estimated payments of $1,250
per quarter ($5000/4), they can avoid the underpayment penalty.
Mr. Paula and Simon average gross income is greater than $150,000, so 110% is taken.
Answer:
wrap around mortgage
Explanation:
A wrap-around mortgage is can be used in deals of owner-financing.
Wrap around mortgage refers to two or more mortgages consolidated into one payment. Such type of mortgage allow the buyer to purchase with a smaller down payment. A buyer also gets an added benefit of a below market interest rate first mortgage. A wrap-around mortgage can only be used to homes with an existing FHA or VA loans.
Answer:
1) many buyers and sellers, (2) free entry and exit
Explanation:
A monopolistic competition is when there are many buyers and sellers of heterogeneous goods and services. There are free entry of firms into and out of the industry. Firms set the price for their products. Buyers and sellers do not have perfect information. In the long run, monopolistic competition make zero economic profit.
A pure competition is characterised by many buyers and sellers of homogenous goods and services. Buyers and sellers have perfect information. There are no barriers to entry or exit of firms in the industry. Market price is set by the market forces. Firms make zero economic profit in the long run.
I hope my answer helps you
Answer:
Infant-industry argument
Explanation:
Infant-industry argument says that a particular industry can't compete with other international competitors because of the economies of scale. So, they demand a temporary protection until they gain economies of scale to be ready to compete on a level playing field.
Note: This can also come in the category of 'unfair competition' argument as huge economies of scales of well established companies create an unfair environment for nascent industries to compete on a same level.
Answer:
First we need to first find the equilibrium quantity and price during normal times.
The equilibrium price in normal times is P=$3 and the equilibrium quantity is 55 bottles.
During the hurricane, the government will set a price ceiling of $3. We can infer from the table that the quantity supplied at P=$3 is 55 bottles while the quantity demanded during hurricane at the price of $3 per bottle is 105 bottles. Hence,
105-55= 50
During a hurricane, there would be a shortage of 50 bottles of water.
If there were no price ceiling, then the equilibrium price would be such that the quantity demanded during hurricane equals the quantity supplied. From the table we can see that the equilibrium price would in that case be P=$5 per bottle where the equilibrium quantity is 85 bottles. With the price ceiling only 55 bottles are available for trading. Now without the price ceiling 85 bottles are available.
Hence consumers would have to pay an additional $2 (=5-3) but they can now buy an additional 30 bottles [=85-55].
Without the antiprice gouging law, consumers would have to pay $2 more than the ceiling price, but they would bv able to buy 30 more bottles of water.
