Answer:
a. 24%
b. 12%
Explanation:
Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).
Chuck Marginal Tax Rate
a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:
= $75,000 + $40,000
= $115,000
Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.
b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:
= $75,000 - $40,000
= $35,000
The marginal tax rate for taxable income of $35,000 is 12% according US tax rate schedule.
Note: the interest is categorized as interest from municipal bond, so it is tax free.
It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.
Answer:
$65 per unit
Explanation:
For computing the cost per unit first we have to determine the cost of goods manufactured which is shown below:
Cost of goods manufactured = Opening work in process + direct material cost + direct labor cost + manufacturing overhead cost - ending work in process
= $10,000 + $12,000 + $6,000 + $4,000 - $6,000
= $26,000
And, there is a production of 400 MP3 players
So, the cost per unit is
= $26,000 ÷ 400 MP3 players
= $65 per unit
I think the correct answer would be politicians trading favors that do not benefit the mass populace of voters. Rent seeking is a practice that involves the use of public policy in order to get benefit from it like increasing their benefits in the expense of other. This oftentimes done by a number of politicians.
Answer:
Decrease the accounts receivable account in assets section of balance sheet by $1,000
Increase the cash account in assets section of balance sheet by $1,000
Explanation:
The Accounting equation for any entity is represented by the following equation:
Assets= Equity + Liability
When the entity receive any amount from customer in respect of the any credit sale made to him, the account receivable in the asset section will be decreased by the that amount and the cash section in the asset section will be increased by that amount.
In this case, Fitch supply services shall
Decrease the accounts receivable account in assets section of balance sheet by $1,000
Increase the cash account in assets section of balance sheet by $1,000
Answer:
The correct answer is option B.
Explanation:
In a competitive industry there is no restriction on entry or exit of firms in the market. So, when in the short run the firms are enjoying super normal profits or positive economic profits, this would attract potential firms to join the industry in the long run.
As a result the industry supply will increase in the long run. The increase in supply would cause the price to fall. This would further contribute in reducing revenue and profit.
This process will continue till the profit is reduced to zero. If profit falls below zero, then firms incurring loss will exit the industry. Then again zero profits will be restored by reduction in supply and increase in price.
So, we can say that perfectly competitive firms will have zero economic profits or only normal profits in the long run.
