A value-added tax is based on consumption. The tax is levied on the value added to goods by each business unit in the production and distribution chain. It is the consumer who ultimately bears the incidence of the tax because businesses subject to the tax will raise prices to offset the operating cost of the tax.

When the order size is 2.000 units, the variable inventory costs are US $2.000 {[(2,000 units $1) - 2] -I- [(20,000 units - 2,000 units) $100]}. When the order size is 4,000 units, the variable inventor -.costs are US $2,500 1[(4,000 units $1) - 2] + [(20,000 units - 4,000 units) $100]}. The increase in inventor-.j costs is US $500 $2.500 - $2,000).

A parent-subsidiary relationship arises from an effective investment in the stock of another enterprise in the stock of 50%. The financial statements for the two companies ordinarily should be presented on a consolidated basis. To the extent the corporation is not wholly-owned, a noncontrolling interest is presented.

The order of the steps in the Denting cycle is identification and measurement of transactions and other events required to be required to be, recognized, journalization, posting from the journals to the ledgers the development of a trial balance, adjustments to produce an adjusted trial balance, statement presentation closing, taking a post-closing trial balance optional and making reversing entries optional.

The increase in pre-tax profit is US $140,000$400,000 cash sales increase - $180,000 nondepreciation expenses increase - $80,000 depreciation). Thus, taxes will increase by US $47,600$140,000 x 34%), and the increase in net cash inflows will be US $172,400$400,000 - $180,000 - $47,600).