Answer:
The free rider problem
Explanation:
The free rider problem is a form of market failure in economics. It means that there's an insufficient form of commodity distribution in which some individuals are allowed to consume more than their fair share of the shared resources or pay less or not at all than the fair share of cost. In this case, tomatoes are overgrown and the common plot is over used, thus making individually owned plot perform better than the common plot. The whole free rider scenario occurs when those who benefits from communal services and goods do not pay for them or underpay for them and over use them.
<span>Accountants must abide by a strict code of ethics that defines their responsibilities to their clients and to the public interest. Hope this answers the question. Have a nice day. Feel free to ask more questions. Thank you.</span>
Answer:
Explanation:
The diagram and step by step solution to the answer can be seen in the attached image below
KINDLY NOTE: Self Employment tax (<u><em>which can be said to be a Medicare tax and Social Security paid by self-employed individuals. It is quite similar to the FICA and usually, they are withheld from an employee’s paycheck Medicare taxes and Social Security purposes.)</em></u> is not applicable to both and the AMT is less then the actual normal tax liability so AMT provision also not applicable.
Answer:
$88.88 or $89 (Approx)
Explanation:
Each point is equal to the 1 percent so, 2 points is equal to the 2%.
Amount of points paid = Borrowed amount × Points percentage
= $400,000 × 2%
= $8,000
Total number of months = Year × Months in a year
= 30 × 12
= 360
Number of months in the deduction year = September to December
= 4
Amount of deduction:
= (Amount of points paid ÷ Total number of months) × Number of months in the deduction year
= ($8,000 ÷ 360) × 4
= $32,000 ÷ 360
= $88.88 or $89 (Approx)
