What is the difference between marginal values and average values? Marginal values show the additional benefit or cost from consuming an additional unit of a good, while average values are the benefit or cost per unit of a good. When finding the marginal value a marginal analysis is conducted to figure out at what value a person will receive another benefit from making another purchase or consumption of a good or service.
Q: A certain country taxes the first $20,000 of an individual'sincome at a rate of 15%, and all income over 20,000 is to be taxesat 20%. Find a piecewise-defined function T that specifies thetotal tax on an income of x dollars.
A: T(x) = {.15x if 0 {.20x- 1000 if x>20,000
Answer:
Explanation:
The journal entries are shown below:
On March 12:
Service fee expense A/c Dr $10,000
To Accounts payable $10,000
(Being purchase of service is recorded)
On March 31:
Accounts payable A/c Dr $10,000
To Cash A/c $10,000
(Being cash payment is made)
Answer: is highly dependent upon a company's tax rate.
Explanation:
The after-tax cost of debt is defined as the net cost of debt that is determined by adjusting the gross cost of debt incurred for its tax benefits. The after-tax cost of debt
equals the pre-tax cost of debt which is then multiplied by (1 – tax rate).
The after-tax cost of debt is the cost of debt which is included while calculating the weighted average cost of capital and it has a greater effect on the cost of capital of a firm when there's an increase in the debt-equity ratio.
