Home office, inc., an accrual basis taxpayer, leases a copying machine to a new customer on december 27, year 1. the machine was to rent for $500 per month for a period of 36 months beginning january 1, year 2. the customer was required to prepay 6 months rent at the time the lease was signed on december 27, year 1. the customer was also required to pay a $2,000 damage deposit at the time the lease was signed. the damage deposit will be returned to the taxpayer at the end of the lease if no damage occurs. determine the amount of gross income

home office recognizes in year 1.

Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from s1 to s2. the price the seller receives for the product after paying the tax is

Policymakers are provided data about the private and social benefits of a good being sold in the market. quantity private mb ($) social mb ($) 6 6 9 7 4 7 8 2 5 9 0 3 what is the size of the externality? if the externality is positive, enter a positive number. if negative, make it a negative number. $ given this data, policymakers must decide whether to address the associated externality with a subsidy or a tax. as their economic consultant, which of the two policy tools would you recommend? a subsidy a tax

At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting