Answer:
Check the following consideration
Explanation:
Since the business owner follows cash basis of accounting the treatment is amount expensed during the financial year can be shown as expenses. hence in the current case rent for 18months can be shown as expenses for that financial year and it can be shown as a deduction while computing tax liability.
Answer:
Therefore, Increases in the tax rate decrease the government purchases multiplier
Explanation:
Given that
MPC = 0.8
Tax rate t = 0.25
tax rate is increases by 35%
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t). Here
So, GPM = 1 ÷ 1 - 0.8 × (1 - 0.25) = 2.5
Government purchases multiplier
= 1 ÷ 1 - MPC × (1 - t)
MPC = 0.8
tax rate t = 0.35
GPM = 1 ÷ 1 - 0.8 × (1 - 0.35)
= 2.08333
= 2.083
Therefore, Increases in the tax rate decrease the government purchases multiplier.
Answer:
$200,000
Explanation:
Selling price per unit = $60.00
Contribution margin per unit = $45.00
Total fixed costs = $150,000
Tax rate = 30%
Contribution margin ratio = Contribution margin ÷ Selling price
= $45 ÷ $60
= 0.75
Hence,
Break-even point =Total Fixed costs ÷ Contribution margin ratio
= 150,000 ÷ 0.75
= $200,000
Answer:
a. $3,520.
Explanation:
The computation of the amount of maintenance cost allocated to the Cutting Department is given below:
= maintenance cost ÷ total floor space excluding maintenance cost
= $20,000 ÷ 6,250 × 1,100
= $3,520.
hence, the option is A.$3,520.
The 6,250 comes from
= 1,100 + 2,100 + 3,050
= 6,250