Answer:
The correct answer to the following question should be $800.
Explanation:
As per the question, a corporation has issued 80 shares which have no par value, and the amount of cash that has been paid for the common stock is $800 cash. So the journal entry for this would be -
SN Particular LF Debit Credit
1 Cash $800
To Common stock $800
( with no par value )
So the amount which would be credited to common stock would be $800
Answer:
The correct answer is D. imposes a small deadweight loss relative to the tax revenue it raises.
Explanation:
By not discouraging the activity, it is understood that taxes should not distort the economic decisions of the individuals subject to taxation. In the theory of Public Finance the inefficiency of taxation can be analyzed through the so-called "excess tax", as a quantification of the loss of utility generated by a distorting tax. The excess of tax arises because the loss of total welfare generated by the tax on the individual with the modification in their behavior, is greater than the mere loss of welfare caused by the decrease in disposable income that comes with the payment of the tax. The value of excess tax that is generated by the substitution effect is greater the higher the tax rate and elasticity (Musgrave, 1986). Therefore, the relationship of exchange between efficiency and equity is not so simple for governments when designing their fiscal policy.
Answer:
Option (C) is correct.
Explanation:
Here, we are using the double declining-balance depreciation method:
Given that,
Building cost = $800,000
Estimated residual value of the building = $50,000
Expected useful life = 25 years
Annual depreciation rate as per straight line method:
= 100 ÷ 25 years
= 4% per year
Hence, depreciation as per double decline balance method:
= 2 × Annual depreciation rate as per straight line method × Beginning value of each period
In year 1,
Ending value = Beginning value - Depreciation
= $800,000 - (2 × 4% × $800,000)
= $800,000 - $64,000
= $736,000
In year 2,
Depreciation = 2 × 4% × $736,000
= $58,880
Answer:
b.$1,150
Explanation:
Sales Collection $5,000*.98 $4,900
Payment of purchases $5,000*50% ($2,500)
Other payments $5,000*25% ($1,250)
Net Cash flow during a typical month $1,150
