Answer and Explanation:
The journal entries are shown below:
On April 8
Cash $9,120
Credit card expense $380 ($9,500 × 0.04)
To Sales $9,500
(Being sale is recorded)
Costs of goods sold $7,021
To Merchandise inventory $7,021
(Being the cost of goods sold is recorded)
On April 12
Cash $7,215
Credit card expense $185 ($7,400 × 2.5%)
To Sales $7,400
(Being sale is recorded)
Costs of goods sold $4,795
To Merchandise inventory $4,795
(Being the cost of goods sold is recorded)
False. Higher levels of taxation will reduce spending, which will lead to a slower economy and less innovation.
Answer: Option D
Explanation: In simple words, business services refers to the activities that supports the business but do not provide any kind of tangible commodity from them.
Accounting, marketing, insurance and education are some of the many examples of business services.
From the above we can conclude that the correct option is D.
Answer:
Deferred Tax Asset:
The amount of taxes that is paid or carried forward but not yet identified in the income statement is referred as deferred tax asset
Journal Entries:
Debit: Income Tax Expense (balancing amount) = 812,500
Debit: Deferred Tax Asset = 87,500
Credit: Income Tax Payable = 900,000
- Income tax expense reduces the stockholders. equity. Hence, debit income tax expense with $812,500
.
- Deferred tax asset is an asset and is increased by $87,500. Therefore, debit deferred tax asset account with $87,500.
- Income tax payable increases the liability by $900,000. Therefore, credit Income tax payable account with $900.000.
Working note:
Determine the amount of deferred tax asset.
Deferred tax asset = Rent collected in 2021 × Enacted tax rate
Deferred tax asset = $350,000 × 25%
Deferred tax asset = $87,500
Determine the amount of income tax expense.
Income tax expense = Income tax payable — Deferred tax asset
Income tax expense = $900,000 = $87,500
Income tax expense = $812,500
Answer:
A. the larger the share of labor costs in total costs and the greater the price elasticity of demand for output.
Explanation:
In the case when there is the change in the wage rate so the output impact on the demand of the firm with respect to the labor input should be greater. And, if the share of the labor cost should be greater in the total cost also at the same time the price elasticity of demand with regard to the output is higher
Therefore the option A is considered
