The change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to increase and the level of investment spending to decrease. If the interest increase, it follows that the spending would decrease.
Answer:
$86,000 and $99,380
Explanation:
The flexible budget formular is fixed at $50,000 plus variable costs
The direct labor hour is $4 per hour
The total budgeted cost at 9,000 hours can be calculated as follows
= $50,000 + ($4×9,000 hours)
= $50,000 + $36,000
= $86,000
The total budgeted cost at 12,345 hours can be calculated as follows
= $50,000 + ( $4×12,345 hours)
= $50,000 + $49,380
= $99,380
Hence the total budgeted cost at 9,000 hours and 12,345 hours is $86,000 and $99,380 respectively
They should form a corporation because a partnership or sole proprietorship have unlimited liability.
Answer:
Option B,$0 profit is the correct answer.
Explanation:
Using the completed-contract method in contract costing implies that all the revenue as well as the associated contract costs are recognized at the end of the contract period.
Specifically,Gleason construction in the process of constructing ,hence no costs and revenue can be recognized ,they are deferred to the completion date of the contract.
The correct option based above explanation is B,$0 profit