Answer:
The correct answer is GDP would definitely increase because GDP excludes leisure.
Explanation:
The GDP does not measure the level of development of a country, nor does it measure the quality or level of its educational system or its health. Come on, that the quality of life in general is not measurable by GDP, although it is true that countries with a higher GDP per capita can afford better health or education services, as well as better infrastructure and services in general.
It does not measure the state of the environment or the damage caused to it or natural resources by the economic activity carried out. In other words, GDP does not report externalities, that is, it does not reflect the total social benefits and costs derived from economic activity.
GDP does not measure the quality of the goods and services produced. The GDP figures are only numbers that do not take into account exactly what is being produced or what is the quality of what is produced. This prevents, for example, comparing production between different eras. Does a computer add up to GDP now than in the 80s? The answer is no. Does a country of services add up to an oil exporter? The answer is also no.
It ignores the value of elements that contribute to maintaining the level of well-being of the population, such as leisure or freedom. In freer countries or in which its inhabitants have more leisure time and better options in which to invest it, well-being is much greater.
Answer: See explanation
Explanation:
a. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.
Debit Income Tax Expense $40400
Debit Defered Tax Asset $7070
Credit Income Tax Payable $19190
Credit Defered tax liability $28280
(To record income tax expense and defered tax/liability).
Note that:
Income Tax Expense was gotten as:
= $202,000 × 20%
= $202000 × 0.2
= $40,4000
Income Tax Payable was gotten as:
= $95,950 × 20%
= $95950 × 0.2
= $19,190
2. Prepare the income tax expense section of the income statement for 2020.
Income statement for year ended 31 December 2020
Income before tax = $202000
Less: Income Tax expense - Current = $19190
Less: Income Tax expense - Defered = $21210
Net income = $161600
The normal rate of return on equity capital is also known as the opportunity cost of capital
Answer:
$3,400
Explanation:
The computation of predetermined overhead rate for the year is shown below:-
Predetermined Overhead Rate = Estimated Manufacturing Overhead ÷ Estimated Allocation Base × 100
= $119,600 ÷ $92,000 × 100
= 130%
2. The computation of the amount of underapplied or overapplied overhead for the year is shown below:-
Overhead Applied = (Opening Value of Direct Material + Purchase of Direct Material - Closing Value of Direct Material) × Predetermined Overhead Rate
= ($24,000 + $140,000 - $17,000) × 130%
= $147,000 × 130%
= $191,100
Overhead Incurred = $106,300 + $8,000 + $18,000 + $15,000 + $8,200 + $39,000
= $194,500
Underapplied overhead = $194,500 - $191,100
= $3,400
