Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 18, Problem 2DQ
To determine
Different perspectives of land rent.
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Theodore D. Kat is applying to his friendly,
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48
LO3
Please do your own work, don't copy from the internet
Q6)
Cash flow (LO12-2) Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $40,000, and that it has a 24 percent tax bracket.
Compute its cash flow using the following format:
Earnings before depreciation and taxes _____
Depreciation _____
Earnings before taxes _____
Taxes @ 24% _____
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How much cash flow is lost due to the reduced depreciation from $40,000 to $20,000?
Explain why economic rent is a surplus payment when viewed by the economy as a whole but a cost of production from the standpoint of individual fifirms and industries. Explain: “Land rent performs no ‘incentive function’ for the overall economy.”
Chapter 18 Solutions
Economics (Irwin Economics)
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