#Discuss the methods of measuring “National Income”. Ans: ‘National Income’ means the total value of goods and services produced annually in a country.There are three alternative methods of measuring national income.They are as follows: 1. Production Method 2. Income Method 3. Expenditure Method These methods are discussed billow: 1. Production Method: In production method national income is a total monetary value of all final goods and services during a
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What is income? Income is the amount that is received in a given period of time. It is a flow of funds. How is income distributed in Australia? According to the ABS - in 1999-2000‚ the richest 20% of income units received 48.5% per cent of total income. The poorest 20% of income units received less than 4% of total income. Note: Income units are made up of one person or a group of related persons within a household‚ whose incomes are assumed to be shared. What are the main sources
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CHAPTER I INCOME TAXES1 A. INDIVIDUAL INCOME TAX 1. Persons subject to the individual income tax For income tax purposes‚ individual taxpayers are classified into: a. Citizen (1) Resident citizen - is a citizen of the Philippines who has a permanent home or place of abode in the Philippines to which he/she intends to return whenever he/she is absent for business or pleasure. (2) Nonresident citizen - is a citizen of the Philippines who establishes the fact of his/her physical presence abroad with
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beginnings and their achievements to reach the top with hard work. The land of opportunity is now only giving opportunity to the wealthy. The increasing income disparity is causing an educational inequality in the future generations resulting in an ongoing cycle that increase the advantages of the wealthy.
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would be not recording the $5.5 million of reciprocal advertising arrangement as revenue because according to the EITF 99-17 Par 2: “Revenues that include barter transactions which have no ultimate realization in cash and no overall effect on net income‚ the practice may lead to overstated
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Reporting Comprehensive Income FASB topic 220-10-45 outlines what is required for companies to report comprehensive income (CI). To do this‚ the entity must report CI either in a single continuous financial statement or in two separate but consecutive financial statements. If an entity prefers to report CI in a single continuous financial statement‚ then the entity must report the components in two sections entitled net income and other comprehensive income (OCI). For both net income‚ and OCI‚ a total
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Financial Accounting 1. Obligation of business that represents the claims of these against the assets of the less cash is called? A. Asset B. An expense (WA) C. Revenue D. An equity E. Liability 2. Net income results when A. Assets > liability B. Revenue = expenses C. Revenue > expenses D. Revenue < expenses E. None 3. Resources owned by a business are referred to as A. Stockholders equity B. Liability C. Assets D. Revenue (WA) E. None 4. Expenses are incurred
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16th amendment: Income Tax In America‚ one of the biggest tax bites on our income is the federal income tax‚ although state and local taxes also take a substantial bite. There are property taxes and sales taxes. Every time we fill up the gas tax‚ we are paying a tax. We pay so much taxes that some have calculated “tax freedom day”‚ as the day during the year when our nation has theoretically earned the income necessary to have paid our taxes for a year. We pay taxes to pay for government services
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average tax rates for a corporation with an income level of $100‚000? Taxes = (0.15 × $50‚000) + 0.25 × ($75‚000 − $50‚000) + 0.34 × ($100‚000 − $75‚000) = $22‚250 Marginal tax rate = 34% Average tax rate = $22‚250/$100‚000 = 0.2225 = 22.25% The year-end 2010 balance sheet of Brandex Inc. listed common stock and other paid-in capital at $1‚100‚000 and retained earnings at $3‚400‚000. The next year‚ retained earnings were listed at $3‚700‚000. The firm’s net income in 2011 was $900‚000. T here were no
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Bike’s assets on that date were recorded at $10‚500‚000 with liabilities of $4‚500‚000. There were no other differences between book and fair values. During 2010‚ Bike reported net income of $500‚000. For 2011‚ Bike reported net income of $800‚000. Dividends of $300‚000 were paid in each of these two years. 49. How much income did Harley report from Bike for 2010? A. $120‚000. B. $200‚000. C. $300‚000. D. $320‚000. E. $500‚000. 26. Under the equity method‚ when the company’s share of cumulative losses
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