Answer:
a. Income from property is taxed to the person who owns the property.
b. Income from services is taxed to the person who earns the income.
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: it's a type of tax levied on the amount of money made by workers in the state. It is typically paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: it's a type of tax that is typically based on the value of a person's assets such as a home or business. Thus, it is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: it's a type of tax that is taxes as a percentage of the price of goods sold in retail stores. Thus, it is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
As a general rule in the taxation of citizens:
a. Income from any property is levied or taxed to the owner i.e the person who owns the property.
b. Income from services taken is taxed to the person who earns the income i.e the service provider.
Financial statement data for Delicious Dishes, Inc. are given below. All figures are in dollars. Use this data to construct an Income Statement for the year ending December 31, 2015 and use your constructed statement to answer the following 4 questions.
Advertising 384,000
Beginning of year inventory 1,243,000
Depreciation 350,000
End of year inventory 1,128,000
General and administrative expenses 1,184,000
Gross sales 28,242,000
Interest expense 150,000
Lease payments 148,000
Management salaries 4,253,000
Purchases 18,243,000
Research and development 324,000
Returns and allowances 564,000
Taxes 925,000
What was gross profit from income statement for the year ending December 31, 2015?
What was operating profit (i.e., EBIT) from Delicious Dishes income statement for the year ending
December 31, 2015?
What was profit before taxes (i.e., EBT) from Delicious Dishes income statement for the year ending December 31, 2015?
What was net income from Delicious Dishes income statement for the year ending December 31, 2015?
Answer:
Gross profit from Delicious Dishes income statement for the year ending December 31, 2015 = $9,320,000
Operating profit (i.e., EBIT) from Delicious Dishes income statement for the year ending December 31, 2015 = $2,677,000
Profit before taxes (i.e., EBT) from Delicious Dishes income statement for the year ending December 31, 2015 = $2,527,000
Net income from Delicious Dishes income statement for the year ending December 31, 2015 = $1,602,000
Explanation:
Note: See the attached excel file for Delicious Dishes income statement for the year ending December 31, 2015.
From the attached excel file, we have:
Gross profit from Delicious Dishes income statement for the year ending December 31, 2015 = $9,320,000
Operating profit (i.e., EBIT) from Delicious Dishes income statement for the year ending December 31, 2015 = $2,677,000
Profit before taxes (i.e., EBT) from Delicious Dishes income statement for the year ending December 31, 2015 = $2,527,000
Net income from Delicious Dishes income statement for the year ending December 31, 2015 = $1,602,000
Suppose you have $100 of endowment, and you are offered a chance to buy a lottery which costs $36. The lottery has 43% of chance to win a prize of $G, or you just lose and get nothing. Suppose your utility function on wealth is u(w)=w^1/2. What is the least prize size G that you will be willing to buy the lottery? (Round to the second digit after decimal point.)
Answer:
96.02
Explanation:
Lottery's Expected utility = [tex]\sqrt{100}[/tex] = 10
Income in good state = 100 - 36 + G = 64 + G
Income in bad state = 100 - 36 = 64
Probability in good state = 43%
Probability in bad state = 100% - 43% = 57%
Expected utility = Probability in good state x [tex]\sqrt{(64 + G )}[/tex] + Probability in bad state x [tex]\sqrt{64\\}[/tex]
10 = 43% x [tex]\sqrt{(64 + G )}[/tex] + 57% x 8
10 = 43% x [tex]\sqrt{(64 + G )}[/tex] + 4.56
10 - 4.56 = 43% x [tex]\sqrt{(64 + G )}[/tex]
5.44 = = 43% x [tex]\sqrt{(64 + G )}[/tex]
5.44 / 43% = [tex]\sqrt{(64 + G )}[/tex]
12.65 = [tex]\sqrt{(64 + G )}[/tex]
[tex]12.65^{2}[/tex] = [tex](\sqrt{(64 + G )})^{2}[/tex]
160.0225 = 64 + G
G = 160.0225 - 64
G = 96.0225
G = 96.02
Also assume the following: The owner’s initial investment consists of $37,600 cash and $45,940 in land in exchange for its common stock. The company’s $17,530 equipment purchase is paid in cash. The accounts payable balance of $8,110 consists of the $2,850 office supplies purchase and $5,260 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $13,520 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Answer:
See below
Explanation:
The above question is incomplete, however, the concluding part was extracted from similar question.
Ebony Ernst statement of cash flow October 31.
Cash flow from operating activities :
Payment towards expenses:
Payment of salary $1,750
Payment of rent $3,550
Payment of telephone expense $760
Payment of misc. expense $580
Total of cash flow from operating activities $6,640
($1,750 + $3,550 + $760 + $580)
Cash flow from investing activities:
Purchase of office equipment ($17,530)
Cash flow from financing activities:
Cash from common stock $37,600
Cash paid ($2,000)
Cash flow from financing activities $35,600 ($37,600 - $2,000)
Net cash flow during the year
($17,530 - $6,640) $10,890
Beginning balance 0
Year end cash balance $10,890
If a consumer withdraws money from his deposits at the bank (banking leakage), then the monetary base and money supply Group of answer choices
Answer:
The correct option is A. will go down.
Explanation:
Note: This question is not complete as the answer choices are omitted. The complete question is therefore provided before answering the question as follows:
If a consumer withdraws money from his deposits at the bank (banking leakage), then the monetary base and money supply
Group of answer choices
A. will go down
B. monetary base will go up and money supply will go down
C. will go up.
D. will remain unchanged
The explanation of the answer is now provided as follows:
The monetary base (or M0) is the total amount of a currency that is either in general circulation or retained in the central bank's reserves in the form of commercial bank deposits.
Money supply a country's entire amount of money in circulation or in existence.
Since each money supply and monetary base has an element of money in circulation, both the monetary base and money supply will go down if a consumer withdraws money from his deposits at the bank (banking leakage).
Therefore, the correct option is A. will go down.
Name three jobs in insurance
Answer:
Claims adjuster
Risk consultant
All of the following statements regarding brand loyalty are true except: Select one: a. the marketing costs of reaching loyal customers are typically very high. b. brand-loyal customers do not need persuasion to buy the firm's brands.
Answer: the marketing costs of reaching loyal customers are typically very high
Explanation:
Brand loyalty is when a customer buys a product repeatedly from thesame company rather than buying a substitute from another company. Despite the efforts of the competitors to life them away, such customers are devoted to the product.
It should be noted that the marketing costs of reaching loyal customers are typically low. They hardly need any source of encouragement or advertisement to convince them to make their purchases.
come onI want to eat laundry soap
Answer:
why does oni want to eat laundry soap
Answer:
He want to eat laundry soap beacuse it contain some acids which clean everything
Which organizational Structure use a single directional flow of authority in a company
Answer:
Line Organization.
Explanation:
The Simplest and oldest type of organization is line organization. It is also known as a scalar or military organization type. In J.M. Lundy's words, "it is characterized by direct lines of authority that flow in the opposite but equally direct way from top to bottom, and the organizational hierarchy."
The superior-subordinate relationship is an important characteristic of such an organization. The authority of higher delegates to another subordinate, etc., is formed from above to below the structure. The established line of authority is called the "line authority." Under this type of organization, responsibility is flowing downward in a straight line. The principle of scalar and unity of command in line organization is strictly followed.
Line organization's advantages:
The main benefits of line organization are as follows:
SimplicityFixed responsibilityDisciplineFlexibility Co-ordinationDirect communicationUnity of commandEconomicalQuick decisionsExecutive development.An insurance company received claim forms from 22 phony doctors. The forms all originated from two addresses: a post office box and a business located in a nearby city and owned by the manager's husband. The manager used a limousine to pick up fellow employees from an expensive restaurant. What fraud symptoms are mentioned in this scenario
Answer:
Option D
Explanation:
Complete question
An insurance company received claim forms from 22 phony doctors. The forms all originated from two addresses: a post office box and a business located in a nearby city and owned by the manager's husband. The manager used a limousine to pick up fellow employees from an expensive restaurant. What fraud symptoms are mentioned in this scenario? A) Accounting anomalies B) Extravagant lifestyles C) Internal control weaknesses D) Both a and b E) All of the above
Solution
The Accounting anomalies are include the following
a) source documents
b) faulty journal entries
c) inaccuracies in ledgers
Extravagant lifestyles fraud occur when a person's expense is not in compliance of their known income.
Hence, both option A and B are correct.
Option D
Do we have to show repair expense of abnormal loss in consignment account.If yes,how ?
Answer:
yes
Explanation:
to see the income and costs of the business
Hi guys, I need your help to give your opinions about this one.
Example:
The experts on your island warn of a possible tsunami, but opinions are divided.
a. A quarter of the experts (group A) assume that a tsunami will certainly come.
b. Three quarters of the experts (group B) assume that the tsunami will come with a 10 percent probability.
Which professionals (group A or group B) would you like to believe more and why? Give reasons for your answer. And what are the consequences of this decision for your actions? And how do you deal with the risks of a wrong decision?
I would believe group A more
because, as we know "Precaution is always better an cure"
If I stay more cautious about it, there are less chances of the tsunami to cause a severe harm. If I don't stay much cautious, according to group B, and in case if their prediction goes wrong, I'll be in serious danger.
I chose group A because
even if the tsunami ain't powerful enough, I would be glad I was careful enough for it and it'll help me in future if I face another situation like this again
The consequences if I chose group B would be :
well, if I would have chose B, I won't have taken any Precautions at all
I won't have been careful enough
and in case their prediction went wrong, I would have to suffer high losses.
I hope it helps.... Have a great time ahead!
g If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period, the amount and direction (increase or decrease) of the period's change in total assets is a
Answer:
$14,000
increase
Explanation:
Assets - liabilities = stockholders equity
Asset - (-46,000) = +60,000
Asset + 46,000 = +60,000
Assets = 60,000 - 46,000 = +14,000
a T-bill money market fund that yields a sure rate of 4.6%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S)166%Bond fund (B)70%The correlation between the fund returns is 0.0800. What is the Sharpe ratio of the best feasible CAL
Answer:
The Sharpe ratio of the best feasible CAL is 0.3167.
Explanation:
Note: This question is not complete as some data are omitted. The complete qustion is therefore provided before answering the question. See attached pdf file for the complete question.
Risk-free rate = Sure rate of the T-bill money market fund = 4.6%, or 0.046
Sharpe ratio of a fund = (Expected return - Risk-free rate) / Standard Deviation …………. (1)
Using equation (1), we have:
Sharpe ratio of Stock fund = (16% - 4.6%) / 36% = 0.3167
Sharpe ratio of Bond fund = (7% - 4.6%) / 30% = 0.08
Since Sharpe Ratio of Stock Fund (S) is higher than Sharpe Ratio of Bond Fund (B), this implies that the best option is to invest in Stock Fund (S).
Therefore, the Sharpe ratio of the best feasible CAL is 0.3167.
Firms in a trust: Group of answer choices do not allow a small number of trustees to make decisions for participating firms. act in their own self interests. act as a single firm. trust each other.
Answer:
act as a single firm.
Explanation:
A trust can be defined as a fiduciary relationship between two party in which one of the parties referred to as a grantor (trustor) grants another party known as the trustee, the express permission, right or authority to hold title to assets or properties for the benefit of a third party. Also, this third party is typically referred to as a beneficiary.
This ultimately implies that, a trust refers to a fiduciary entity that is mainly focused on holding and administering a corpus for other individuals or third parties (beneficiaries).
All business firms in a trust act as a single firm (trustee) because they are not dependent on other firms in terms of decision making and control of their assets.
There is a bond that has a quoted price of 103.203 and a par value of $2,000. The coupon rate is 6.81 percent and the bond matures in 23 years. If the bond makes semiannual coupon payments, what is the effective annual interest rate
Answer: 6.53%
Explanation:
You can use an Excel worksheet to solve this.
The bond pays semi-annual coupons so you need to convert these measures to periodic measures:
Coupon = 6.81% * 2,000 * 0.5 = $68.10
Maturity term = 23 * 2 = 46 semi annual periods
Present value = 2,000 * 103.203 quoted price = $2,064.06
Use the Rate function as attached:
Periodic rate = 3.2694%
Annual rate = 3.2694 * 2
= 6.53%
An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.7%. Bond C pays a 11.5% annual coupon, while Bond Z is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 8.7% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answer to the nearest cent.
Answer:
Bond C
Time to maturity Price of the bond
0 $1,091.31
1 $1,071.26
2 $1,049.46
3 $1,025.76
4 $1,000.00
Bond Z
Time to maturity Price of the bond
0 $716.28
1 $778.59
2 $846.33
3 $919.96
4 $1,000.00
Explanation:
Bond C
Use the PV function to calcuclate the price of the bond
=PV(rate, nper, pmt, [fv] )
Where
rate = yield to maturity = 8.7%
pmt = Coupon payment = Face value x Coupon rate = $1,000 x 11.50% = $115
fv = maturity value = $1,000
Working and the formula sheet is attached with this answer, please refer to the attachment.
It has been argued that the traditional model of a full-service, lead advertising agency is becoming obsolete. Discuss the changes occurring in the industry and how they are affecting the traditional lead agency model.
Answer:
It can be argued that the traditional leading full-service advertising agency model is becoming obsolete by the emergence of new technologies and communication tools such as social media. The relationship between company and consumer is no longer something more mechanized and distant to become more direct and personal, this was made possible by the very characteristics of social media, which are fast and integrative communication tools, which humanized and brought companies closer to consumers, making relationship marketing a great advantage in the quest for value creation and market positioning.
Therefore, after companies have immersed themselves in social media, communication is faster and more instantaneous, in addition to being cheaper, it does not require so much elaborate advertising effort, but content that engages its potential audience, generates value and focuses on building relationships . So advertising is really just a construction of the real connections that consumers want to have with the company, its values, objectives and mission.
name the market structure in which agriculture farming operate
Answer:
The right answer is "Pure monopoly, monopolistic competition and oligopoly".
Explanation:
The agricultural market system would be fundamentally competitive as well as is often called straight-up competitiveness.Agriculture would be ideal competitiveness even though it has a vast variety of industries and every company generates a small proportion of the overall production of such marketplace.Thus the above is the correct answer.
What is the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method
Answer:
$15 per unit
Explanation:
Note "The full question is attached as picture below"
Markup = (Fixed Costs + Desired Profit) / Units produced
Markup = ($300,000 + $150,000 + $50,000) / 50,000
Markup = $500,000 / 50,000 units
Markup = $10 per unit
Variable cost per unit = Variable cost / Quantity
Variable cost per unit = ($200,000 + $50,000) / 50,000
Variable cost per unit = $5 per unit
Sales price = Variable cost + Markup
Sales price = $5 per unit + $10 per unit
Sales price = $15 per unit
So, the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method is $15 per unit.
Calculate the annual coupon payment if the semi-annual coupon paying bond price is $920, the yield for the bond is 6%, the bond's face value is $1,000 and matures in 9 years. (Enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23)
Answer:
$48.40
Explanation:
Yield = 6%
Rate = Yield/2 = 6%/2 = 3%
YTM = 9
Nper = YTM*2 = 9*2 = 18
Face value = $1,000
Price(PV) = $920
Monthly payment = PMT(0.03, 18, -920, 1000)
Monthly payment = $24.1833
Coupon rate = (PMT/Face value) * 2
Coupon rate = (24.1833/1000) * 2
Coupon rate = 0.0241833 * 2
Coupon rate = 0.0483666
Coupon rate = 4.84%
Annual coupon payment = Face value * Coupon rate
Annual coupon payment = $1000 * 4.84%
Annual coupon payment = $48.40
On January 1, 2016, the first day of the fiscal year, a company issues a $500,000, 5%, 10-year bond that pays semiannual interest of $12,500 ($500,000 x 5% x ½ year), receiving cash of $500,000. Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date of December 31. Be sure to include the year in the date for (a) and (c). Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Date Account titles and Explanation Debit Credit
Jan 1, 16 Cash $500,000
Bonds payable $500,000
(To record the issuance of the bonds)
Jun 30, 16 Interest expense $12,500
($500,000 x 5% x ½ year)
Cash $12,500
(To the first interest payment on June 30)
Dec 31, 25 Bonds payable $500,000
Cash $500,000
(To record the payment of the principal on the
maturity date of December 31)
Consuela is a business analyst for her company. She is working from home and on a video conference with several other team members. Her video conferencing client displays a message indicating that the quality of her connection is unstable. What is the most likely problem
Answer: c) Latency between her VPN client removing encryption and making it available to the video-conferencing client is causing poor performance.
Explanation:
A Virtual Private Network (VPN) is used to protect the identity of people online as it encrypts a person's data and uses different servers to allow them browse the web and with a different IP address from the user's original IP address that way it appears as though the user is somewhere else in the world than they actually are.
In doing this however, VPNs might give slow speeds due to the latency that develops as the VPN encrypts and decrypts data for use. In this case, the VPN latency in decrypting the video call for Consuela to see it is slowing down the speed of the Video conferencing client.
Assume one person drives 10,000 miles per year, at 20 miles per gallon of gasoline (mpg ), and the Federal gas tax is 20 cents/gallon. How much does the driver contribute to the Federal Trust Fund
Answer: $100
Explanation:
Since the person drives 10,000 miles per year, at 20 miles per gallon of gasoline (mpg ), then the number of gallons used for the year will be:
= 10000/20
= 500 gallons
Since the Federal gas tax is 20 cents/gallon, then the amount contributed by the driver to the Federal Trust Fund will be:
= 20cents × 500
= 10000 cents
Since 100 cents = $1
Then, 10000 cents will be:
= 10000/100
= $100
Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:
20Y5 20Y6
Net income $1,508,000 $2,676,000
Preferred dividends $60,000 $60,000
Average number of
common shares outstanding 80,000 shares 120,000 shares
a. Determine the earnings per share for 20Y5 and 20Y6.
b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
Answer and Explanation:
a. The computation of the earning per share is given below:
As we know that
Earning per share = (Net income - preference dividend) ÷ (average no of common shares oustanding)
For 20Y5
= ($1,508,000 - $60,000) ÷ 80,000 shares
= $18.1
For 20Y6
= ($2,676,000 - $60,000) ÷ 120,000 shares
= $21.8
b. Since the earning per share is increased from 20Y5 to 20Y6 so it is favorable
The world's average (mean) GDP per capita is $10,515. There are roughly 7 billion people in the world. About 20% of the world's population produces 50% of the world's total GDP. How much GDP does the top 20% produce
Answer:
$36.802.50 billion
Explanation:
GDP per capita measures the standard of living of the people in a country. The higher the GDP per capita, the higher the standard of living
GDP per capita = GDP / population
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
$10,515 = GDP / 7 billion
GDP = $10,515 x 7 billion
GDP = 73,605 billion
GDP of the top 20% = 50% x 73,605 billion = $36.802.50 billion
6 what is electrical Filling ?
The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish development and make the product, youshould go ahead and do so. The most you should pay to complete development is $2.0 million.
Answer:
Yes; $2.0 million
Explanation:
Yes, SHOULD YOU GO AHEAD and do so reason been that the TOTAL LOSS would then be the amount of $3 million instead of the amount of $5 million which therefore means that The MOST YOU SHOULD PAY in order to complete the development would be the amount of $2 million calculated as ($5 Million-$3 Million).
A hotel uses collapsible walls to create several smaller meeting rooms from a large meeting room as needed for their customers. This is an example of ____________.
Answer:
economies of scope.
Explanation:
It is correct to say that the hotel uses scope savings, which is a strategy used by companies to reduce costs, whose focus is on increasing efficiency by producing the greatest amount of the same goods together.
It is correct to say that the hotel uses the economy of scope because it already uses a large meeting room, increasing efficiency by dividing it into several smaller meeting rooms to satisfy the needs of its customers.
Cala Manufacturing purchases land for $411,000 as part of its plans to build a new plant. The company pays $30,500 to tear down an old building on the lot and $45,087 to fill and level the lot. It also pays construction costs $1,726,400 for the new building and $108,976 for lighting and paving a parking area. Prepare a single journal entry to record the costs incurred by Cala, all of which are paid in cash.
Answer:
Date General journal Debit Credit
Land $486,587
($411,000+$30,500+$45,087)
Land improvements $108,976
Building $1,726,400
Cash $2,321,963
Process or Sell Product D is produced for $24 per gallon. Product D can be sold without additional processing for $36 per gallon or processed further into Product E at an additional cost of $9 per gallon. Product E can be sold for $43 per gallon. Prepare a differential analysis dated February 26 on whether to sell Product D (Alternative 1) or process further into Product E (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Answer:
Sell Product D
Explanation:
The computation of the differential analysis dated February 26 is presented below:
Particulars Sell D(ALT 1) Process Further Into E(ALT 2) Differential Effect(ALT 2)
Revenues
per unit $36 $43 $7
Costs per unit $24 $33 $9
Income(Loss)
per unit $12 $10 -$2
Here we should do that Sell Product D
