Answer:
B. Natural resources
Explanation:
The assets which are consumed physically and are productive also is come under the natural resources. The example of natural resources includes mineral deposits, coal mine, iron, etc. It is also known as wasting an asset. These are considered as long term assets
In the case of the natural resources, the depletion expense is charged, not the depreciation or amortization expense
Answer:
The correct answer is option c.
Explanation:
With an increase in the taxes the equilibrium income will decline by the amount of tax multiplier into the change in tax rates.
The tax multiplier is a measure to show the change in aggregate production due to change in tax rates.
It is calculated by the ratio of marginal propensity to consume and marginal propensity to save or 1-MPS.
Answer:
The income elasticy of demand for steak is 0.5
Explanation:
The income elasticity of demand formula is:
IED = Δ%Q / Δ%Y
Where:
- Δ%Q is change in quantity demanded
- Δ%Y is change in income
So for this case:
IED = 2%/4%
= 2/4
= 0.5
Answer:
Resources of economic value owned by the company
Explanation:
An asset is a resource controlled by the entity (company or business) and from which future economic benefits are expected to flow to the entity as a result of having this entity.
Assets can be divided into non-current and current assets. Non current assets are assets that are expected to be retained by the business for at least a year while current assets are assets that are constantly changing during the course of the business's activities.
Answer: $108,860
Explanation:
Book value at time of sale:
= Cost price - Accumulated depreciation
= 730,000 - ( 730,000 * ( 51% + 27%))
= 730,000 - 569,400
= $160,600
Asset was sold at $81,000 which is a loss of:
= 81,000 - 160,600
= -$79,600
Tax on this loss:
= -79,600 * 35%
= -$27,860
After-tax cash flow:
= Sales price + tax
= 81,000 + 27,860
= $108,860
