Answer:
Explanation:
Given that
Beginning of month supplies purchased for $1,000
And, the supplies used = $300
So, The adjusting entry is as follows
1. Supplies expense A/c Dr $700
To supplies A/c $700
(Being supplies expense is recorded)
The supplies expense is computed by
= Supplies balance - supplies used
= $1,000 - $300
= $700
Answer:
Total savings= $2,468.7
Explanation:
Giving the following information:
Suenette plans to save $600 at the end of Year 1, $800 at the end of Year 2, and $1,000 at the end of Year 3.
Annual rate= 3.4%
To calculate the final value of the investment, we need to apply the following formula to each deposit:
FV= PV*(1+i)^n
Deposit 1= 600*1.034^2= 641.50
Deposit 2= 800*1.034= 827.2
Deposit 3= 1,000
Total= $2,468.7
Answer:
d. the interest rate will fall.
Explanation:
If the number of people that save money is more than the number of people that demand for investment, then production rate will reduce, and if investment demand is more than savings, production will increase. And if there is an increase in interest rate, consumption rate will fall because spending on consumption will be more expensive and consumer will prefer to save for higher interest rate.
Therefore in situations where there is an increase in saving and the interest rate does not affect the consumption rate, there will be a fall in the interest rate.
Answer:
A. There is a tax rate at which tax revenues are maximized.
Explanation:
By Laffer Curve definition we can easily understand the relationship between tax rate and tax revenues. It was developed by Arthur Laffer. The Laffer Curve describes that:
- with an optimal tax rate government maximizes total tax revenues
- there is no tax revenue collection at the two extreme tax rates of 0% and 100%
- at the left side of the curve higher tax rates decrease the incentive to work and invest. As a result this leads to to decrease in total tax revenue.
Answer:
b.) The equipment should be capitalized and depreciated according to the tax code
Explanation:
Depreciation under the Income Tax Act is a deduction allowed for the decline in the real value of a tangible or intangible asset used by a taxpayer. The Income Tax Department uses the concept of depreciation for the purpose of writing off the cost of an asset over its useful life.