After All Appropriate Closing Entries to the Following Accounts Have

question 42

Multiple Choice

After all appropriate closing entries to the following accounts have been made, what will be the balance in the Jeff Corvette, Capital account? $$\begin{array} { | l | r | } \hline \text { Service fees revenue } & \$ 140,000 \\\hline \text { Various experses } & 60,000 \\\hline \text { Jeff Corvette, capital } & 80,000 \\\hline \text { Jeff Corvette, withdrawals } & 15,000 \\\hline\end{array}$$

• A) $65,000
• B) $80,000
• C) $130,000
• D) $145,000
• E) $280,000

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Definitions:

Tax Revenue

The revenue governments receive as a consequence of taxes.

Deadweight Loss

Failure to reach free market equilibrium for a good or service leads to a loss in economic efficiency.

Labor Supply

The total hours that workers are willing and able to work at a given rate of pay, across different job markets or sectors.

Laffer Curve

A theoretical representation showing the relationship between tax rates and government revenue, positing that there is an optimum tax rate that maximizes revenue.