Answer:
Warbocks Corporation
Statement of retained earnings for the year ended December 31, 2017
Amount in $
Opening retained earnings 12,600
Net income for the year 7,000
Dividend (5,000)
Closing retained earnings 14,600
Explanation:
The retained earnings statement shows the movement in the retained earnings balance between the start and end of the year.
This includes the net earnings and dividend paid during the year.
Net income = $30,000 - $15,000 - $2,000 - $4,500 - $500 - $1,000
= $7,000
Answer:
Instructions are lsited below
Explanation:
We don't have enough information to resolve with numbers. But I will leave the formulas necessary to resolve.
The general structure of an income statement proceeds as follow:
Revenue/Sales (+)
Cost of Goods Sold (COGS) (-)
=Gross Profit
Marketing, Advertising, and Promotion Expenses (-)
General and Administrative (G&A) Expenses (-)
=EBITDA
Depreciation & Amortization Expense (-)
=Operating Income or EBIT
Interest (-)
Other Expenses (-)
=EBT (Pre-Tax Income)
Income Taxes (-)
=Net Income
A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.
Sales=
Variable costs:
Cost of good sold=
Sales commissions=
Shipping expense=
Total variable cost=
Contribution margin=
Fixed costs:
Advertising expense=
Shipping expense=
Administrative salaries=
Insurance expense=
Depreciation expense=
Total fixed cost=
Net profit=
Answer:
If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary
A 4.5% increase in marginal tax = 0.16 * 4.5 = 0.72 = 0.7 ( decrease in quantity of labor )
A 2% increase in marginal tax
= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )
A 15% increase
= 0.16 * 15 = 2.4 ( decrease in quantity of labor )
No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )
A reduction of 5%
= 0.16 * 5 = 0.8 ( increase in quantity of labor )
Explanation:
Tax elasticity of labor supply = 0.16
What percentage will the quantity of labor supplied increase in response to
A) $500 per person income tax rebate
percentage change in quantity supplied = (tax elasticity of supply) * (percentage change in tax rate ) If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary measure and does not have an effect the tax rate in the long run.
B) A 4.5% increase in marginal tax
change in the quantity of labor = tax elasticity * increase marginal tax
0.16 * 4.5 = 0.72 = 0.7 ( decrease in quantity of labor )
A 2% increase in marginal tax
= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )
A 15% increase
= 0.16 * 15 = 2.4 ( decrease in quantity of labor )
No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )
A reduction of 5%
= 0.16 * 5 = 0.8 ( increase in quantity of labor )
b. decrease in exports in the economy.
c. increase in imports in the economy.
d. leakage in spending in the economy.
Answer:
d. leakage in spending in the economy.
Explanation:
In the economy firms spend money on labour, input, and business expansion. While in the personal household there is spending on food, rent, and other expenses.
When money is taken out of this cycle and not used for a particular purpose then it is considered to be a leakage.
Leakages include taxes savings and imports.
Savings occurs when an individual has excess income and decides to reserve some for a future use. This fund does not have a particular use in the economy so it is considered to be a leakage.
Answer:
D. Leakage in spending in the economy.
Explanation:
It is observed that if consumers have a rise in their wages, they tend to benefit and this helps the economic situation of the said country or nation as seen in some economies of the world lately. Also alteration in interest rates can have different consumer effects which ranges from spending habits depending on a number of factors to other habits that may end up boosting the economy also current rate levels, expected future rate changes, confidence of the consumer, and the overall health of the economy.
Answer:
Calculation of Gain or Loss:
Book Value of Truck = 25,200 - 22,680
= $2,520
Gain on Exchange = 4,158 - 2,520 - 630
= $1,008
Therefore, the journal entry is as follows:
Accumulated Depreciation A/c Dr. $22,680
computer A/c Dr. $3,150
To Truck $25,200
To Cash $630
(To record the Truck)
Answer:
$0
Explanation:
The deductions made as seen were in the year 2019.
If Derek elects to take standard deduction in filling federal income tax return, the amount of refund will not be taxable and not to be included in 2020 gross income
Hence, no tax benefit rule applies as the standard deduction was taken in 2019.
Amount of refund that will be included in 2020 gross income is thus $0
B. opportunity cost.
C. nonsatiety
D. rationality.
Answer:
B. Opportunity Cost
Explanation:
Comparative Advantage is when an economy can produce certain goods & services at a lower opportunity cost than other trading economies.
Opportunity cost is the cost of next best option forgone while choosing a particular option.
Comparative advantage (production ability at lower opportunity cost) implies: Economy can produce a good/ service by sacrifising lesser amount of other good, than the other economy.
Example : Production Possibilities of 2 countries, 2 goods :-
Good X Good Y Opportunity Cost (Goods Ratio)
Country A 10 30 1:3 (10/30)
Country B 5 10 1:2 (5/10)
Country A can produce Good Y by sacrifising 3 units of Good X, Country B can produce Good Y by sacrifising 2 units of Good X. So, B can produce good Y at lesser opportunity cost than A. Hence, country B has comparative advantage in good Y.