Answer:
b
Explanation:
Answer:
B. This company stresses the importance of using tools correctly.
Explanation:
Happy holidays! Right on ED2021, goodluck!
This is where labor and other factors of production are sold in the circular flow model of income in economic theory *it’s for economics USA testprep
Answer:
Resource Market
Explanation:
A resource market is a market from where businesses purchase inputs that can be used for production.
Resource Market is a market where labor and other factors of production are sold in the circular flow model of income in economic theory.
In Resource Market, households are the sellers and firms are the buyers.
A company is offering 5,000,000 new shares to the public. The shares are being sold to a syndicate for $12 and are being reoffered to the public at $13. The compensation to the underwriters for each share sold is $0.75. The selling group receives $0.30 a share for each share it sells, and the managing underwriter retains $0.25 in fees for each share sold by anybody. The selling group will assist in selling 1,000,000 out of the 5,000,000 shares offered. If the selling group sells its entire allotment how much does it make in profits
Answer:
The selling group makes $300,000 in profit if it sells its entire allotment.
Explanation:
The amount of profit makes by the selling group can be calculated using the following formula:
Selling group profit = Number of shares expected to be sold by the selling group * Amount to receive per share by the selling group ............... (1)
Where:
Number of shares expected to be sold by the selling group = 1,000,000
Amount to receive per share by the selling group = $0.30
Substituting the relevant values into equation (1), we have:
Selling group profit = 1,000,000 * $0.30 = $300,000
Therefore, the selling group makes $300,000 in profit if it sells its entire allotment.
Why do people have different belief systems? What are some of the different belief systems held in different countries? How do belief systems affect a country’s political system and culture?
Answer:
.
Explanation:
I don’t know either I’m also in this class.
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unit would be $10 for A and $12 for B; and revenue per unit would be $15 for A and $16 for B.
a) Determine each alternative’s break-even point in units.
b) At what volume of output would the two alternatives yield the same profit?
c) If expected annual demand is 12,000 units, which alternative would yield the higher profit?
Answer:
Results are below.
Explanation:
Giving the following information:
Alternative A:
Fixed costs= $40,000
Variable cost per unti= $10
Revenue per unit= $15
Alternative B:
Fixed costs= $30,000
Variable cost per unti= $12
Revenue per unit= $16
First, we need to calculate the break-even point in units using the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Alternative A= 40,000 / (15 - 10)
Alternative A= 8,000
Alternative B= 30,000 / (16 - 12)
Alternative B= 7,500
To calculate the indifference point in units, we need to determine the net income equations:
Alternativa A= 5*x - 40,000
Alternative B= 4*x - 30,000
x= number of units
We equal both formulas and isolate x:
5x - 40,000 = 4x - 30,000
x = 10,000
The indifference point is 10,000 units.
Finally, the higher income for 12,000 units:
Alternativa A= 5*12,000 - 40,000= $20,000
Alternative B= 4*12,000 - 30,000= $18,000
For 12,000 units the best option is alternative A.
The following events took place at a manufacturing company for the current year:
a. Purchased $95,900 in direct materials.
b. Incurred labor costs as follows:
1. direct, $56,900
2. indirect, $14,500.
c. Other manufacturing overhead was $107,900, excluding indirect labor.
d. Transferred 80% of the materials to the manufacturing assembly line.
e. Completed 65% of the Work-in-Process during the year.
f. Sold 85% of the completed goods.
g. There were no beginning inventories.
Required:
What is the value of the ending Work-in-Process Inventory?
Answer:
The ending Work-in-Process Inventory is:
= $89,600.
Explanation:
a) Data and Calculations:
Purchases of direct materials = $95,900
Materials used (80% of $95,900) $76,720
Direct labor incurred = 56,900
Overhead costs:
Indirect labor incurred = 14,500
Other overhead costs 107,900 122,400
Total production costs $256,020
Cost of goods completed = 166,413
Ending Work in Process = $89,607
Cost of goods completed = $166,413
Cost of goods sold = 85% of $166,413 = $141,451
Ending Finished goods inventory = $24,962
Bibby Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Bibby estimated that the total overhead costs would be $72,000 and that the total labour hours would be 2,400. At the end of the year, Bibby obtained the actual overhead costs from the ledger and found that the shop had incurred $65,800 and had worked 2,350 labour hours.
Predetermined (budgeted) overhead rate.
Overhead Rate $30
overhead amount that was applied for the year.
Overhead amount $4700 over applied
Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation Debit Credit
Answer and Explanation:
The journal entry is shown below:
Overhead $4,700
Cost of goods sold $4,700
(Being overapplied overhead is closed)
Here the overhead is debited as it increased the expenses and credited the cost of goods sold as it decreased the expense
The unadjusted trial balance of Sketch Star Makers Inc., prepared as of December 31, 2018, includes the following account balances. All of the accounts listed have normal balances. Cash$18,500 Accounts Receivable 3,700 Supplies 4,400 Prepaid Insurance 8,200 Equipment 27,000 Accumulated Depreciation 3,700 Notes Payable (long-term) 37,000 Deferred Revenue 13,500 Service Revenue 47,000 Salaries and Wages Expense 38,500 The following information is also available: A) A count of supplies revealed $2,100 worth on hand at December 31, 2018. B) An insurance policy, purchased on January 1, 2018, covers five years. C) The equipment depreciates at a rate of $2,700 per year; no depreciation has been recorded for 2018. D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018. E) The accrued amount of salaries and wages at December 31, 2018 is $3,700. Required: Prepare the required adjustments for the company as of December 31, 2018
Answer:
A) A count of supplies revealed $2,100 worth on hand at December 31, 2018.
Dr Supplies expense 2,300
Cr Supplies 2,300
B) An insurance policy, purchased on January 1, 2018, covers five years.
Dr Insurance expense 1,640
Cr Prepaid insurance 1,640
C) The equipment depreciates at a rate of $2,700 per year; no depreciation has been recorded for 2018.
Dr Depreciation expense 2,700
Cr Accumulated depreciation, equipment 2,700
D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018.
Dr Deferred revenue 6,750
Cr Service revenue6,750
E) The accrued amount of salaries and wages at December 31, 2018 is $3,700.
Dr Wages expense 3,700
Cr Wages payable 3,700
You purchased eight put option contracts with a strike price of $30 and a premium of $1.10. What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $26.50 a share
Answer:
$23120
Explanation:
The computation of the total net amount received is shown below:
Total Premium Paid
= 800 Option × $1.10
= $880
And,
Amount Received is
= 800 Option × $30
= $24000
So, Net Amount Received is
= $24000 - $880
= $23120
Let's say that a country produces only 2 final products during a certain period of time: hats and hairdryers. The quantities are 24 hats and 10 hairdryers at a per unit price of $5, and $15 respectively. The country also produces 2 intermediate products (cotton and metals) to help produce the hats and hairdryers; the total value of the intermediate goods is $50. The country's depreciation is $20. What is this country's NDP (Net Domestic Product) during this period of time
Answer:
the country ndp i.e. net domestic product is $250
Explanation:
The computation of the NDP is shown below;
= GDP - depreciation
= (24 × $5 + 10 × $15) - $20
= $120 + $150 - $20
= $250
Hence, the country ndp i.e. net domestic product is $250
We ignored the total value of the intermediate goods
Newt is a single taxpayer living in Hollywood, California, with adjusted gross income for the 2018 tax year of $43,050. Newt's employer withheld $3,700 in state income tax from his salary. In April of 2018, he paid $300 in additional state taxes for his prior year's return. The real estate taxes on his home are $1,800 for 2018 and his personal property tax based on the value of his automobile is $75. Also, he paid $210 for state gasoline taxes for the year. The IRS estimate of general sales tax for Newt is $1,200 for 2018.
How much should Newt deduct on Schedule A of Form 1040 of his 2018 tax return for taxes paid?
Answer:
$510
Explanation:
Adjusted gross income for 2018 = $43050
state income tax = $3,700
Real estate tax = $1800
personal property tax = $75
Total tax paid = 3700 + 1800 + 75 = $5575
Additional tax paid not part of the current year tax return = $300
The amount that Newt deduct on Schedule A of form 1040 of his 2018 return for taxes paid will be = state gasoline tax and tax for prior year
= $210 + $300 = $510 will be deducted from the schedule A of form 1040 of his 2018 tax return for taxes paid
There is only one way to find an average.
A True
B False
Answer:In mathspeak, what people usually call the "average" is properly known as the "mean" or the "mean number." There are actually two other types of averages – the "mode" and "median" – that you'll learn about when you study statistics. But for most mathematical applications, the term "average" tells you to seek out the mean, which can be calculated with basic addition and division
Explanation:so I'm thinking it's false
You are an accountant working for Hotel Co. Your supervisor has asked you to research what amount of revenue Hotel Co. should recognize for transactions booked by customers on Expedia. Expedia generally collects the full transaction price from the customer, then withholds a small fee (say, $10) from each transaction and remits the balance to Hotel Co. Should Hotel Co. record the gross transaction fee or only the net amount it receives from Expedia
Answer:
Hotel Co. should record the gross transaction fee and not only the net amount it receives from Expedia.
Explanation:
The revenue that Hotel Co. should account for in its books includes the gross transaction fee, while the collection expense that is withheld by Expedia is recorded as an expense or cost. This method ensures that the revenue due to the Hotel Co. is actually accounted for while the collection expense by Expedia is also separately accounted for. This will enable comparison with another hotel that does not use Expedia for its collection, for example.
What is exporting?
..........
Answer:
business owners or even countries who sell thier goods to others
Exporting is defined as the sale of products and services in foreign countries that are sourced or made in the home country. Importing is the flipside of exporting. Importing refers to buying goods and services from foreign sources and bringing them back into the home country.
What is an example of exporting?Export is defined as moving products to another country for the purpose of trade or sale. An example of export is Ecuador shipping bananas to other countries for sale.
Type of exportDirect Export.Indirect Export.Merchant Export.Deemed Export.Penultimate sale.Learn more about exporting here https://brainly.com/question/24473707
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Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits$75per hourAnnual labor hours 6,350hoursAnnual materials purchase$1,206,250 Materials purchasing, handling, and storage$241,250 Overhead for depreciation, taxes, insurance, etc.$670,000 Target profit margin for both labor and materials 25% What should Shale set as the materials markup per dollar of materials used
Answer:
45%
Explanation:
Annual material purchase $1,206,250
Material purchasing, handling and storage cart $241,250
Material purchasing, handling and storage % on 20%
material purchase ($241,250/$1,206,250*10)
Target profit margin 25%
Material markup per dollar of material used 45%
1. There are 20 forging presses in the forge shop of a small company. The shop produces batches of forgings requiring a setup time of 3.0 hours for each production batch/machine. Average standard time for each part in a batch is 45 seconds, and there are 600 parts in a batch/machine. The plant workforce consists of two workers per press, two foreman, plus three clerical support staff. (a) Determine how many forged parts can be produced in 1 month, if there are 8 hours worked per day and average of 21 days per month at one shift per day. (b) What is the labor productivity ratio of the forge shop, expressed as parts per worker-hour
Answer:
The solution according to the given scenario is described below.
Explanation:
The given values are:
No. of foreign presses,
= 20
Required setup time,
= 3 hours
Average standard time,
= 45 seconds
Average produced batch,
= 600
Now,
(a)
The number of workers will be:
= [tex]20\times 2+2+3[/tex]
= [tex]40+2+3[/tex]
= [tex]45[/tex]
The total time for batch's production will be:
= [tex]3\times 60+(45\times \frac{600}{60} )[/tex]
= [tex]180+45\times 10[/tex]
= [tex]630 \ minutes[/tex]
or
= [tex]10.5 \ hours[/tex]
The total number of hours per month will be:
= [tex]8\times 21[/tex]
= [tex]168 \ hours[/tex]
then,
The total batches per month will be:
= [tex]\frac{168}{10.5}[/tex]
= [tex]16 \ batches \ per \ month[/tex]
Total batches = [tex]20\times 16[/tex]
= [tex]320[/tex]
Now,
The produced pieces will be:
= [tex]320\times 600[/tex]
= [tex]192000 \ pieces/month[/tex]
(b)
[tex]Labour \ productivity= \frac{ Total \ production}{ Labour \ hours }[/tex]
On substituting the given values, we get
[tex]=\frac{192000}{(8\times 21\times 45)}[/tex]
[tex]=25.4 \ per \ worker \ hours[/tex]
The labor productivity ratio is the ratio analytical tool that determines the efficiency of labor to perform their task and provide higher returns and production in the specified time limit. It is determined by taking into consideration the total number of products and the labor hours provided to each labor per day.
a) The number of forged parts that can be produced in 1 month is 192,000 pieces per month.
b) The labor productivity ratio of the forged shop is 25.40 per labor hour.
Computations:
a)
[tex]\begin{aligned}\text{Number of pieces}&=\text{Total Batch}\times\text{Parts in Batch per Machine}\\&=320\;\text{batches}\times600\;\text{parts}\\&=192,000\;\text{pieces per month}\end{aligned}[/tex]
Working Note:
[tex]\begin{aligned}\text{Number of Workers}&=\left(\text{No. of foreign presses}\times\text{Worker per press}\right)\\&+\text{Worker per press}+\text{Setup Time}\\&=\left(20\times2 \right )+2+3\\&=45\;\text{no. of workers} \end{aligned}[/tex]
[tex]\begin{aligned}\text{Time for batch production}&=\text{Setup Time}\times\text{Average produced batch}\\&+\left(\text{No. of workers}\times\frac{\text{Average produced batch}}{\text{Minutes}} \right )\\&=3\times60+\left(45\times\frac{600}{60}\right)\\&=630\;\text{minutes or}\;10.50\;\text{hours}\end{aligned}[/tex]
[tex]\begin{aligned}\text{Total Batches}&=\text{No. of Foreign Presses}\times\text{Total Batches per month}\\&=20\times\left(\frac{\text{hours per day}\times\text{days per month}}{\text{Total time for batch production}} \right )\\&=20\times\left(\frac{8\times21}{10.50} \right )\\&=320\end{aligned}[/tex]
b) The labor productivity is computed as follows:
[tex]\begin{aligned}\text{Labor Productivity}&=\frac{\text{Total Production}}{\text{Labor hours}}\\&=\frac{192,000}{8\times21\times45}\\&=25.4\;\text{per worker hours}\end{aligned}[/tex]
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Kyle had a splitting headache. His buddy Cyrus gave him a couple of lime-green pills to take away the pain. When Kyle awoke, Cyrus was lying next to him in a pool of blood. If Kyle is tried for a crime, what could be his defense?
insanity
duress
intoxication
necessity
Answer:
necessity
Explanation:
This is necessity beause it might have been on accident to help cyrus but became a bloody murder,seems like a 3rd or a second degree murder,most likely 3rd degree,it just happend.
Answer:
C
Explanation:
bro read it and u'll know other person is wrong
A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be $59,000 for Memphis, $69,000 for Biloxi, and $104,000 for Birmingham. Labor and materials are expected to be $7 per unit in Memphis, $5 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $58,000 per year, the Biloxi location by $68,500 per year, and the Birmingham location by $25,400 per year. Expected annual volume is 14,400 units.
Answer:
Total cost for a location = Annual costs for building, equipment, and administration + Labor and materials cost per unit*expected annual volume + Increase in transportation costs
Total cost for Memphis location = $59000 + $7*14400 + $58000
Total cost for Memphis location = $217,800
Total cost for Biloxi location = $69000 + $5*14400 + $68500
Total cost for Biloxi location = $209,500
Total cost for Birmingham location = $104000 + 5*14400 + $25400
Total cost for Birmingham location = $201,400
So, Birmingham location gives the lowest Annual Total Cost.
To finance the building of a new fire station, a local government is likely to borrow money by issuing?
a. junk bonds
b. treasury bonds
c. municipal bonds
d. money market bonds
Answer:
c
Explanation:
Explain how opportunity cost is different for economic goods and free goods
Answer:
The difference is that free goods have exactly zero opportunity cost, because they cost nothing, their price is zero, and their use is non rival, and non excludable, meaning that if a person uses a free good, that person does not prevent any other person from using the good.
Economic goods, on the other hand, are goods that have a price, and that have a cost of production. Besides they are rival and/or exclusionary. The opportunity cost of an economic good varies depending on the good, but it is never zero.
Label the scenarios as examples of elastic, inelastic, or unit elastic demand.
a. When Ruko, a device used to stream movies at home, increases prices by 48 %, total revenue decreases by 59 %.
b. When Cinema Supreme decreases ticket prices by 12 %, total revenue does not change.
c. When Bluebox, a DVD rental kiosk, increases its prices by 52 %, total revenue increases by 34 %.
Answer:
A) elastic demand
B) unit elastic demand
C) inelastic demand
Explanation:
A)
increases prices = 48 %
total revenue decreases = 59% hence, this is elastic demand. Since increase in price has brought about decrease in quantity demand definitely revenue will fall
B)
decreases ticket prices = 12 %
total revenue doesn't altered hence it s unit elastic demand, since there is change in price and quantity demand. So revenue remains unaltered.
C)
increases its prices = 52%
total revenue increases = 34%
Quantity demanded is lower to change in price hence, increase in total revenue. Hence it's inelastic demand
Kingston Manufacturing has 29,000 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit (hours) 3 3 Maximum demand (units) 7,000 5,000 Contribution margin per unit $ 5 $ 6 Contribution margin per labor hour $ 4.00 $ 3.50 If Kingston follows proper managerial accounting practices, how many units of Product Y should it produce
Answer:
See below
Explanation:
Contribution margin per labor hour
Contribution margin per labor hour Product X
$4
Product Y
$3.5
Rank
Product X
1
Product Y
3
Optimum mix
Hour
Product X 7,000 × 3 = 21,000 Unit 6,000
Product Y 29,000 - 21,000 = 8,000 Unit 8,000/4 = 2,000
Product Y 6,000 units; 2,000 units
The following unadjusted accounts are taken from the records of Brown Corp. at December 31, 2019:
Bank Loan 201 Interest Expense 632 Interest Payable 222 12,000 200 100
Additional Information: The bank loan bears interest at 6% per year. It was obtained on April 1, 2019.
Payment in full is due on March 31, 2020.
Required: Prepare the adjusting entry at December 31, 2019
Answer:
Dr Interest expense $340
Cr Interest payable $340
Explanation:
Preparation of the adjusting entry at December 31, 2019
First step is to calculate the interest expense to be debited
Interest expense for 2019 $540
(12,000*6%*9/12)
Less Interest expense already debited ($200)
Interest expense to be debited $340
($540-$200)
Now let Prepare the journal entry
December 31, 2019
Dr Interest expense $340
Cr Interest payable $340
($540-$200)
(Being Interest expense recorded)
Suppose consumers buy 50 million packs of cigarettes per month at a price of $5 per pack. If a $1 tax is added to that
price, By what percentage does the price change
Answer:
Percentage change= 20%
Explanation:
Giving the following information:
Selling price before tax= $5
Tax= $1
Selling price after tax= $6
To calculate the percentage increase, we need to use the following formula:
Percentage change= [(Selling price after tax - Selling price before tax)/Selling price before tax]*100
Percentage change= [(6 - 5)/5]*100
Percentage change= 20%
On January 1, 2020, Ann Price loaned $216216 to Joe Kiger. A zero-interest-bearing note (face amount, $280000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 9%. The present value of $280000 at 9% for three years is $216216. What amount of interest income should Ms. Price recognize in 2020
Answer:
$19,459.44
Explanation
Interest expense in 2020 = Loan amount * Prevailing rate of interest
Interest expense in 2020 = $216216 * 9%
Interest expense in 2020 = $19,459.44
So, $19,459.44 is the amount of interest income that Ms. Price should recognize in 2020
what is the importance of having a good management
Answer:
Employees need to know what is expected of them; having clear expectations helps employees do their job well. A good manager will convey his expectations and make sure employees understand them. He also will make himself available to employees, so they can have the opportunity to clarify any confusion they may have.
Blue Spruce Company had $152,600 of net income in 2016 when the selling price per unit was $153, the variable costs per unit were $93, and the fixed costs were $573,300. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Blue Spruce Company is under pressure from stockholders to increase net income by $61,700 in 2017.
(a) Compute the number of units sold in 2016. (Round answer to 0 decimal places, e.g. 1,225.) ______units
(b) Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profit level. _______units
Answer:
12098
13127
Explanation:
Net income = revenue - total cost
revenue = price x unit sold
total cost = variable cost + fixed cost
variable cost = variable cost per unit x unit sold
unit sold is unknown, so it would be represented with a
$152,600 = $153a - ($93a + $573,300)
$152,600 = $153a - $93a - $573,300
Collect like terms and solve for a
a = 12,098
b. Net income in 2017 = $61,700 + $152,600 = 214,300
214,300 = $153a - $93a - $573,300
Collect like terms and solve for a
a = 13127
What are the implications of managing external environment
Answer:
Explanation:
Its has impacts on jobs and employment, the amount of environmental uncertainty, and the nature of stakeholder relationships.
The external environment is one that includes the external factors like the clients and customers. It needs to ensure the directly the interactive and the indirectly interactive factors function and work in collaboratively to achieve the business's objectives.
The implications of the environment mean managing the political, economical, and social environment also.Learn more about the implications of managing external environment/
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When Disney acquired Marvel Comics on August 31, 2009, for $4.24 billion, management needed to determine whether there were opportunities to strengthen the business and leverage cross-business value-chain relationships, which would include all of the following potential opportunities, except Group of answer choices transferring valuable resources and capabilities from one business to another. sharing the use of powerful and well-respected brand names across multiple businesses. retaining cultural independence of the businesses, individual brands and operating differences encouraging knowledge-sharing and collaborative activity among the businesses. combining related value-chain activities of different businesses to achieve lower costs.
Answer:
retaining cultural independence of the businesses, individual brands and operating differences encouraging knowledge-sharing and collaborative activity among the businesses.
Explanation:
When Disney purchased Marvel they were probably searching for synergy which means that their combined effort is larger than the addition of their individual efforts. Synergy is achieved through sharing resources and allocating them more effectively, not by separating the companies.
4. Labour Institutions Act(10MKS)
Outline five reasons that may make it necessary for a government to regulate wages of
employees in the country.
Answer:
Reduce discrimination. Reduce exploitation. Reduce inequality/ poverty. Increase productivity. Economic growth.Explanation:
It is necessary for the government to regulate wages because some companies might take advantage of little regulation to get away with many unjust and unethical actions as they chase profits or due to personal bias.
Without government regulation, there would be wage disparity between races and genders so regulation reduces that. Exploitation will also be reduced because companies will not take advantage of unemployment rates to make workers overwork themselves to keep their jobs.
Regulated wages will reduce inequality in social classes as well as poverty rates as people will be paid closer to what they deserve.
Regulated wages will also lead to improved productivity as people will be more encouraged when they are working knowing they are getting paid appropriately so they will work harder.
With people being paid appropriately, they will be able to afford more goods and invest more savings which will lead to growth in the economy.
Why do you think the Federal government taxes long-term capital gains and qualified dividends at a lower rate than earned
and other types of unearned income?
Answer:
The justification for a lower tax rate on capital gains relative to ordinary income is threefold: it is not indexed for inflation, it is a double tax, and it encourages present consumption over future consumption. ... Future personal consumption, in the form of savings, is taxed, while present consumption is not.
Explanation: