For Each of the Following Transactions That Could Be Introduced

question 5

Essay

For each of the following transactions that could be introduced to fund the maintenance of the city park,state the type of fund(s)that would be affected.Assume that a capital project fund will be used to handle any long-term improvements or additions to the park.
1.Resources used to make 60 monthly installments on outstanding long-term debt.
2.Implemented a tax on alcohol purchases specifically designated for the park upkeep.
3.A local sports organization that uses the park raises funds and donates the money,stating that the principal may not be spent,but designating earnings to the park upkeep.
4.City council approves the funds from existing resources for the upkeep required in the upcoming year.
5.Resources used only to pay principal and interest of debt outstanding to finance park maintenance.

Analyze the progressive, regressive, and proportional nature of various taxes and their impact on different income groups.

Comprehend the concept of tax incidence and how the burden of a tax is distributed between consumers and producers.

Understand the concepts of elasticity of labor supply and demand and their relationship to the burden of payroll taxes.

Recognize the long-term effects of changes in individual income tax rates and corporate profits tax on prices and profits across sectors.

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Definitions:

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate the relative value of company shares.

Market Price

The current price at which an asset or service can be bought or sold.

Net Income

The sum a company retains as earnings after deducting taxes and expenses from its total revenue.