Answer:
1. Tax avoidance
2.Tax avoidance
3.Tax evasion
Explanation:
Tax avoidance refers to a legal way of reducing one's tax liability through lawful deductions. Ways to reduce tax liabilities are; capitalizing on tax advantage retirement accounts, liasing with tax advisor on the legal way for tax avoidance. Tax avoidance is however legal.
Examples of tax avoidance are;
1. Andrea keeps a record of all her business related expenses.
2. Daniel claims the amount of interest paid for his mortgage as tax deductions.
Tax evasion is a deliberate attempt by a tax payer to avoid payment of tax liability. It is a fraudulent action by a tax payer to wilfully evade tax in an illegal manner. In tax evasion, income is concealed to tax authorities inorder to evade tax payment which is a criminal offence. It is to be noted that tax evasion is illegal in the eye of the law.
Example of tax evasion is ;
3. Christian did not report the tips he earned on his tax return.
Answer: Inelastic
Explanation:
Based on the information given, we would calculate the elasticity of demand which would be:
= (Change in Quantity / Change in Price) (Initial Price/ Initial Quantity)
Change in Quantity = 1800 - 2000 = -200
Change in Price = 50 - 40 = 10
Initial Price = 40
Initial Quantity = 2000
Elasticity of demand would then be:
= (-200/10)(40/2000)
= (-20)(0.02)
= -0.4
Since elasticity of demand is less than 1, it is an inelastic demand.
AFN has negative and positive sides. The correct statement is A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed.
- AFN is known as Projected increase in assets – spontaneous increase in liabilities – any increase in retained earnings.
When the AFN value is negative, it means the action or project that is underwork will bring about extra income for the company, which can be invested in another place.
Additional funds needed (AFN) is known as financial term used when a business intends to widen its operations.
Learn more About AFN from
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Answer:
1. $66,000
2. $66,000
Explanation:
The computations are shown below:
1. Before written off:
= Account receivable balance - uncollectible amount
= $70,000 - $4,000
= $66,000
2. After written off:
= Account receivable balance - second year written off amount - uncollectible amount + second year written off amount
= $70,000 - $700 - $4,000 + $700
= $66,000
Answer: $6,600
Explanation:
Income, although not typically in a taxpayer’s possession, is usually constructively received in the taxable year which is when it is credited to the person's account, or made available so that the person may draw upon it at any time, or could have drawn upon it in the taxable year when the notice of intention to withdraw has already been given.
However, income is not constructively received when the taxpayer’s control of receipt is subject to limitations or restrictions. In this case, the last month’s rent ($600 security deposit) has already been constructively received and is included; but, the rent that was received in January for the December rent has not been constructively received and is therefore not included for a total of $6,600 which was derived from the [$600 deposit which was last month rent + ($600 × 10 months Feb-Nov)].
= $600 + $6000
= $6600
