Roberts Retires and Is Paid $160,000 Based on an Independent

question 45

Multiple Choice

Roberts retires and is paid $160,000 based on an independent appraisal of the business.If the goodwill method is used, what is the capital balance of Dana?

• A) $ 20,000.
• B) $ 60,000.
• C) $110,000.
• D) $120,000.
• E) $230,000.

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Definitions:

Producers

Entities or individuals that create goods or services for consumption by consumers.

Excise Tax

A tax charged on specific goods, such as alcohol and tobacco, usually imposed to discourage certain behaviors or generate revenue.

Tax Burden

The distribution of tax payments among individuals or groups, often discussed in the context of equity and fairness.

Deadweight Loss

It represents the loss of economic efficiency when the equilibrium for a good or a service is not achieved or is not achievable.