Answer: A
Explanation:
A complementary good is a product that is used together with another product. Without its complement, such a good will have little value. When there is increase in the price of a particular product, the demand of its complement reduces because consumers may not be able to use the complement on its own.
Complements have negative cross elasticity of demand i.e there is increase in the demand for a product when the price of its complement reduces. If bicycles and gasoline are complements, an increase in tax on gasoline will have a negative effect on the demand for bicycle. Due to the price increase of gasoline, less people will demand for bicycle. The initial change that will occur as a result of this is that as there is a price increase for gasoline, there will be a leftward shift in the demand for bicycle. This implies that less bicycle will be demanded for.
Answer:
The explicit tax would Curtis incur on interest earned on the Initech, Inc. bond is $7,395
Explanation:
The computation of the explicit tax is shown below:
= (Invested amount × interest rate with similar risk) × marginal tax rate
= ($425,000 × 7.25%) × 24%
= $30,812.50 × 24%
= $7,395
We consider the invested amount, similar risk interest rate, and the marginal tax rate. The paying interest rate would not be considered. Hence, ignore it
Answer: Acc 450 the auditors' primary means of obtaining corroboration of management's information concerning litigation is a Letter of audit inquiry to the client's lawyer.
Explanation: A secondary audit process that auditors use to acquire pertinent data is an audit inquiry. The data comes from sources both inside the organisation, such managers, and outside the organisation, like debtors, creditors, investors, or other businesses-related legal entities.
An independent auditor can verify the legal information provided by management with the aid of a letter of inquiry. It is a method through which the auditors confirm or acquire a full explanation of the topics they wish to confirm from legal counsel or attorneys general.
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Answer:
Correct option :a. The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $2,000.
Explanation:
Based on the information given we were told Darryl gave 1,000 shares of stock to his daughter in the month of September 29, 2019 in which Darryl daughter also received the amount of $2,000 dividend on October 18 of the same year which means that Darryl daughter have to recognize the income reason been that the daughter owned the common stock when the dividend was been declared and she as well received the amount of $2,000.
