Answer:
b both milk and bread are normal goods.
Explanation:
Jessica's demand for bread and milk increased as her income increased. This implies that both milk and bread are normal goods.
A normal good is a good for which demand increases as income rises and demand decreases as income falls.
Answer:
A
Explanation:
Contribution margin is used to determine the profitability of a product. it is price less variable cost
Contribution margin = price - variable costs
Price = revenue / quantity sold
$440,000 / 11,000 = 40
Variable cost = total variable cost /output
$110,000 / 11,000 = 10
contribution margin = 40 - 10 = 30
Answer:
sales tax payable 1,200 debit
cash 1,200 credit
Explanation:
To record this entry we need to understand the sales tax is not an expense for the company as is charged into the invoice and paid by the customers.
The company is an intermediate agent between the customer and the government. The company's role is to collects the tax and pay to the government. We need to record the payment of 1,200 to the government thus, we write-off the sales tax payable and credit the cash give away to the IRS
Answer:
Built-in gains tax is $13,020
.
Explanation:
The built-in gains tax is one levied against an S corporation that used to be a C corporation, or received assets from a C corporation.
Here,
Gain= $80,000
Loss= $10,000
Holds= $8,000
Income= $65,000
Corporate tax= 21%
To calculate the built-in gains tax, we will need to calculate the net gain of the corporation and multiply it by the tax rate.
= Built-in-gain - built-in-loss - unexpired NOL
80,000 - 10,000 - 8,000 = 62,000
Then
62,000 x 0.21 tax rate = 13,020
= 13,020
