PRINC. OF TAX FOR BUS.+INV. PLAN. W/CON
22nd Edition
ISBN: 9781260688948
Author: Jones
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 11QPD
To determine
Explain the reason of the result as given.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $700,000,000. Currently, the assessment rate is 35% and the tax rate is 40 mills. The county commission increases the assessment rate to 55% and the tax rate to 45 mills.
(a)
How much property tax (in $) was collected under the old rates?
$
(b)
How much more tax (in $) revenue will be collected under the new rates?
$
As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $300,000,000. Currently, the assessment rate is 35% and the tax rate is 40 mills. The county commission increases the assessment rate to 55% and the tax rate to 45 mills.
(a)How much property tax (in $) was collected under the old rates?
(b)How much more tax (in $) revenue will be collected under the new rates?
As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands attacks increase will be necessary next year. The total market value of the property in the county is $800,000,000. Currently the assessment rate is 35% and the tax rate is 30 mills. The county commission increases the assessment rate to 55% in the tax rate to 35 mills.
A-how much property tax and dollars was collected under the old rates?
B-how much more tax in dollars revenue will be collected under the new rates? 
Chapter 1 Solutions
PRINC. OF TAX FOR BUS.+INV. PLAN. W/CON
Ch. 1 - Prob. 1QPDCh. 1 - Prob. 2QPDCh. 1 - Prob. 3QPDCh. 1 - Mr. P owns a residential apartment complex in a...Ch. 1 - Prob. 5QPDCh. 1 - A local government imposed a new 2 percent tax on...Ch. 1 - Prob. 7QPDCh. 1 - Prob. 8QPDCh. 1 - Prob. 9QPDCh. 1 - Prob. 10QPD
Ch. 1 - Prob. 11QPDCh. 1 - Prob. 12QPDCh. 1 - Prob. 13QPDCh. 1 - Prob. 14QPDCh. 1 - One way for the federal government to increase tax...Ch. 1 - The Internal Revenue Code and Treasury regulations...Ch. 1 - Prob. 1APCh. 1 - Prob. 2APCh. 1 - Prob. 3APCh. 1 - This year, State A raised revenues by increasing...Ch. 1 - Prob. 5APCh. 1 - Prob. 6APCh. 1 - Prob. 7APCh. 1 - Prob. 8APCh. 1 - Prob. 9APCh. 1 - Prob. 10APCh. 1 - Prob. 11APCh. 1 - Prob. 12APCh. 1 - Prob. 13APCh. 1 - Prob. 14APCh. 1 - Prob. 15APCh. 1 - Prob. 1IRPCh. 1 - Prob. 2IRPCh. 1 - Prob. 3IRPCh. 1 - Prob. 4IRPCh. 1 - Prob. 5IRPCh. 1 - Acme Corporation was formed under the laws of...Ch. 1 - Prob. 7IRPCh. 1 - Prob. 8IRPCh. 1 - Prob. 9IRPCh. 1 - Prob. 10IRPCh. 1 - Prob. 1TPCCh. 1 - KTR Company earns a 10 profit on each unit of...
Knowledge Booster
Similar questions
- As the tax assessor for Indian Creek County you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $700000000. Currently the assessment rate is 35 % and the tax rate is 40 mills. The commission increases the assessment rate to 45 % and the tax rate to 45 mills. How much property tax in dollars was collected? How much more tax will be collected under the new rate?arrow_forwardThe city decided to reduces taxes over the next two years. they will reduced taxes 2% the first year and 3% the second year. What will be the total percent reduction in taxes? Do not round the final answer?arrow_forwardA state decided to increase its sales tax from 6.25% in 2010 to 6.5% in 2011. If the total value of goods sold in the state was $4 million in 2010 and $3.9 million in 2011, which of the following statements best describes the change in sales tax revenue of the state from 2010 to 2011? A) From 2010 to 2011, the sales tax revenue increased by $3,500. B) From 2010 to 2011, the sales tax revenue increased by $2,000. C) From 2010 to 2011, the sales tax revenue decreased by $2,500. D) From 2010 to 2011, the sales tax revenue decreased by $7,500.arrow_forward
- You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 7%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $705,250. (a)How much of this revenue was sales (in $) and how much was sales tax (in $)? (b)How much sales tax (in $) should be sent to the city? (c)How much sales tax (in $) should be sent to the state?arrow_forwardYou are the owner of Cache, a chain of women’s clothing boutiques. Your state has a sales tax of 5% and your city has an additional sales tax of 1.5%. Each quarter you’re responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue including sales tax of $266,250.  A- how much revenue was sales in dollars, and how much is sales tax in dollars? B-how much sales tax in dollar should be sent to the city? C- how much sales tax and dollars should be sent to the state? arrow_forwardFor fiscal 2022, Lake City levied a property tax of $270,000. The city estimated that 4% of the tax will not be collected. By fiscal year end, the city, based on the cash already collected, declares the uncollected amount of $10,200 as delinquent. Of the delinquent taxes, $5,700 is estimated to be collected within 60 days of year end and the rest is uncollectible. In fiscal 2023, Lake City collects $4,800 of the delinquent taxes and writes off the remaining delinquent taxes. Prepare the journal entries to record all the property tax transactions in fiscal 2022. Determine the amount of tax revenues reported for fiscal 2022. Prepare the journal entries to record the collection and write-off of delinquent taxes in fiscal 2023.arrow_forward
- NEED BOTH QUESTIONS. .... As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands, a tax increase will be necessary next year. The total market value of the property in the county is $900,000,000. Currently, the assessment rate is 35% and the tax rate is 30 mills. The county commission increases the assessment rate to 45% and the tax rate to 35 mills. (a)How much property tax (in $) was collected under the old rates? (b)How much more tax (in $) revenue will be collected under the new rates?arrow_forwardThe City of Frost has a 20-year debt outstanding. On the last day of the current year, this debt has an outstanding balance of $4.8 million and five years remaining until it is due. On that date, the debt is paid off early for $5 million. A new debt is issued (with a lower interest rate) for $5.4 million. How is the $200,000 between the amount paid and the outstanding balance of $4.8 million recognized on government-wide financial statements? As an expense. As a reduction in liabilities. As a deferred outflow of resources on the statement of net position. As an asset on the statement of net position.arrow_forwardCity has a population of 50,000. During this fiscal year, the city generated general revenues of $30 million. The primary revenue source is property tax. The taxable property value is $1,250 million. The debt outstanding and the debt service is 37 million and 2.7 million respectively. If the benchmark debt service ratio is 10 percent. Assume an annual interest rate of 4 percent and a twenty-year maturity for the debt, how much additional debt can the city carry?arrow_forward
- City has a population of 50,000. During this fiscal year, the city generated general revenues of $30 million. The primary revenue source is property tax. The taxable property value is $1,250 million. The debt outstanding and the debt service is 37 million and 2.7 million respectively. If the benchmark debt service ratio is 10 percent. Assume an annual interest rate of 5 percent and a thirty-year maturity for the debt, how much additional debt can the city carry?arrow_forwardThe City of Bainland has been undergoing financial difficulties because of a decrease in its tax base caused by corporations leaving the area. On January 1, 2017, the city has a fund balance of only $400,000 in its governmental funds. In 2016, the city had revenues of $1.4 million and expenditures of $1.48 million. The city's treasurer has forecast that, unless something is done, revenues will decrease at 2 percent per year while expenditures will increase at 3 percent per year. Required Create a spreadsheet to predict in what year the government will have a zero fund balance. One proposal is that the city slash its expenditures by laying off government workers. That will lead to a 3 percent decrease in expenditures each year rather than a 3 percent increase. However, because of the unemployment, the city will receive less tax revenue. Thus, instead of a 2 percent decrease in revenues, the city expects a 5 percent decrease per year. Adapt the spreadsheet created in requirement (1) to…arrow_forwardYou are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 7%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $705,250. How much of this revenue was sales (in $) and how much was sales tax (in $)?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
