5. Understanding marginal and average tax ratesConsider the economy of Cocoland, where citizens consume only coconuts. Assume that coconuts are priced at $1 each. The government has devisedthe following tax plans:Plan APlan B• Consumption up to 1,000 coconuts is taxed at 50%.• Consumption up to 2,000 coconuts is taxed at 15%.• Consumption higher than 1,000 coconuts is taxed at 20%.• Consumption higher than 2,000 coconuts is taxed at 60%.Use the Plan A and Plan B tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at theconsumption levels of 300 coconuts, 1,200 coconuts, and 3,000 coconuts, respectively.Consumption LevelPlan APlan B(Quantity of coconuts) Marginal Tax RateAverage Tax Rate Marginal Tax RateAverage Tax Rate(Percent)(Percent)(Percent)(Percent)3001,2003,000

Calculation of marginal tax rate and average tax rate are as follows:

Answered: 5. Understanding marginal and average…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How much of the following transactions is subject to consumption tax? * Importation of flowers by local merchant - P900,000 * Importation of husked rice by a local merchant - P1,200,000 * Importation of books by a local merchant - P300,000 * Importation of lumber by local non-merchant - P3,200,000 P4,400,000 O P4,100,000 P2,400,000 O P900,000
1.
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Choose a,b,c,d,e for the following: Question 1 - Debt x Interest Rate x Tax Rate: a. gives us the value of taxes saved due to interest expense. b. gives us the value of taxes paid on the interest. c. gives us the value of the annual dividend tax shield. d. gives us the present value of the annual interest tax shield. e. allows us to save taxes because equity is tax deductible.
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Course: Financial MathematicsIn a certain city, a landlord used to pay one-eighth (12.5%) of profit he made on his rents. Then tax was increased and he now pays 20% of what he makes as profit from his rents. By what percentage (%) must his rent increase to continue to have the SAME RENT as before tax increase? Answer is 9.375% Procedure are needed to get 9.375% as answer.
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4. Mahmood buys a commodity from the wholesaler at OMR 1,200 and was charged by VAT at the rate prescribed of 10%. He fixes the price of this commodity at OMR 1,500 for the customer and in turn he charges VAT at the same rate. Calculate the amount of Value Added tax (VAT) paid by Mahmood to the government. A. OMR 120 B. OMR 270 C. OMR 150 D. OMR 30
Scenario: You have just been hired by the country of "Shorelinia" to create a tax system. Your tax system must collect at least $1,000 billion in revenue. You have three taxes to choose from; income tax, sales tax, and payroll tax. c) You must decide the SalesTax. For reference, state and local sales taxes around Seattle add up to approximately 10%, some of the highest in America. In the USA, there is no national sales tax, although a number of countries have them, also known as VATs (value added taxes) or GSTs (general sales taxes.) Sales tax revenue (in billions of $) at various tax rates 0% 2% 4% 6% 8% 10% 12% revenue $0 $60 $120 $180 $240 $300 $360 The sales tax rate in Shorelinia will be _______%. (fill in space below) d) Sales tax revenue Look up the tax revenue generated by your chosen tax rate in the table above. The sales tax revenue will be $_______billion. (fill in space below) e) Payroll Tax rate In the country of Shorelinia, the payroll tax is…
1. What are the taxes and tax rates for individuals taxpayers? In philippines please... Please help me answer it, don't worry I'll rate it helpful, thank you!
The interest tax shield year 1 is ______$ million (Round to three decimal places) The interest tax shield year 2 is ______$ million (Round to three decimal places) The interest tax shield year 3 is ______$ million (Round to three decimal places) The interest tax shield year 4 is ______$ million (Round to three decimal places) The interest tax shield year 5 is ______$ million (Round to three decimal places)

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