Figure 8-6 the Vertical Distance Between Points a and B Represents a Represents

question 84

Multiple Choice

Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.When the government imposes the tax in this market,tax revenue is

• A)$600.
• B)$900.
• C)$1,500.
• D)$3,000.

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Definitions:

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or purchased items are sold first, used for cost of goods sold calculation.

Pretax Income

The amount of income earned by a business before taxes have been deducted.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Inventory Error

Mistakes in counting or valuing inventory that can result in incorrect financial statements.