Use the Figure Below Illustrating the Impact of an Excise

question 101

Multiple Choice

Use the figure below illustrating the impact of an excise tax to answer the following question(s) .
Figure 4-6
-Refer to Figure 4-6. The amount of the excise tax I is

• A) $.50.
• B) $1.50.
• C) $1.00.
• D) $2.00.

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Definitions:

Loss on Disposal

The loss incurred when the selling price of an asset is less than its carrying amount at the time of disposal.

Plant Asset

A long-term tangible asset used in the operation of a business that is not intended for sale.

Book Value

The net value of a company's assets, subtracting liabilities from the total assets; also refers to the value of an asset as per accounting records.

Natural Resources

Materials or substances such as forests, minerals, and water that occur in nature and can be used for economic gain.