Ian Paid $475 for an Airline Ticket to Fly to Acapulco,Mexico

question 133

Multiple Choice

Ian paid $475 for an airline ticket to fly to Acapulco,Mexico for a spring break vacation.Unfortunately,he fell ill and could not go to Acapulco.When he called the airline to cancel the ticket,he was reminded that the ticket was non-refundable,but that he could exchange it for another ticket within one year if he pays a $75 fee at the time of the exchange.Several months later he is deciding whether to exchange the ticket for a ticket of the same price to Acapulco.The opportunity cost of going to Acapulco would equal

• A) the ticket price of $475 plus the $75 exchange fee,if he has no other trip that he will take within the year.
• B) the ticket price of $475 plus the $75 exchange fee,if he has another trip that he will take within the year.
• C) the $75 exchange fee,if he has no other trip that he will take within the year.
• D) the $75 exchange fee,if he has another trip that he will take within the year.
• E) $0,if he has no other trip that he will take within the year.

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Definitions:

Payroll Tax Depositor

An entity or individual responsible for depositing payroll taxes collected from employers and employees to the appropriate tax authorities.

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity.

New Companies

Businesses that have been recently established or registered.

Supplemental Wages

Supplemental wages are additional income paid to an employee beyond their regular wages, including bonuses, commissions, overtime pay, and severance pay, which may be taxed differently.