Answer:
A. make sure government programs can function properly.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
The main reason for government spending such as building public schools, power supply, water, development of infrastructures, etc., is to ensure and facilitate the proper functioning of all government programs.
Hence, the government of a particular country is saddled with the responsibility of spending on basic projects or programs so as to create a sustainable, growing and efficient economy for its citizens.
Answer:
$1012.50 ( dollar coupon interest paid at the end of 6 months )
Explanation:
par value ( initial value ) of TIPS = $100000 ( PO)
coupon rate = 2% ( r )
Annual inflation rate = 2.5% ( R )
semi-annual inflation rate = 1.25%
A) what is the dollar coupon interest paid after 6 months
= inflation adjusted principal after 6 months * r / 2 equation 1
inflation adjusted principal after 6 months( P1 ) = PO * ( 1 + R /2 ) equation 2
= 100000 * ( 1 + 1.25% ) = 100000 * 1.0125=$101250
therefore back to equation 1
P1 * 0.02 / 2 = 101250 * 0.01 = $1012.50 ( dollar coupon interest paid after 6 months )
Answer:
1. $2,400
2. $2,120
3. $17,808
Explanation:
1. The computation of the interest expense is shown below:
= Total amount borrowed × interest rate × number of months ÷ total months in a year
= $57,600 × 10% × 5 months ÷ 12 months
= $2,400
The five months is calculated from August 1 to December 31
2. The computation of the sales taxes payable is shown below":
= Sales tax × sale tax rate ÷ 100 + sale tax rate
= $44,520 × 5% ÷ 105%
= $2,120
3. The computation of the amount of subscription revenue recognized is shown below:
= Total advance collected × number of months ÷ given months
= $44,520 × 2 months ÷ 5 months
= $17,808
The two months is calculated from November 1 to December 31
