Carole Owns 75% of Pet Foods,Inc

question 35

Multiple Choice

Carole owns 75% of Pet Foods,Inc.As CEO,Carole must travel extensively and does so on the company jet.In addition,she also uses the jet to take several personal vacations.Carole reports the value of the personal use of the jet,$40,000,as additional compensation.Which of the following is true in terms of the corporation?

• A)The corporation includes $40,000 as miscellaneous income.
• B)The $40,000 has no impact on the corporation's income tax.
• C)The corporation takes a deduction of $40,000 for compensation expense.
• D)The corporation takes a deduction of $40,000 for dividend expense.

Understand the concepts of elasticity of demand and supply

Recognize factors determining whether demand or supply for a product is elastic or inelastic

Identify how changes in price affect total revenue depending on the elasticity

Understand the short-run and long-run adjustments in the market and their effects on elasticity

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Definitions:

Oxygen

A chemical element that is crucial for life, necessary for respiration in humans and animals, and plays a vital role in combustion.

Arteriosclerosis

The thickening, hardening, and loss of elasticity of the walls of arteries, leading to restricted blood flow.

Ischemia

Restriction of blood flow to tissue or organs; often used with reference to the heart.

Embolism

The sudden blockage of a blood vessel by an embolus, typically a blood clot, leading to potentially life-threatening conditions.