For each of the following, identify whether the transaction results in a DTA, DTL, or permanent difference. Group of answer choices Expenses incurred in obtaining tax exempt income [ Choose ] Estimated warranty costs accrued. [ Choose ] Excess of tax depreciation (MACRS) over straight line depreciation expense. [ Choose ] Rent prepaid by a lessee. [ Choose ] Unearned revenue. [ Choose ]

The maximum tax rate on estates and gifts

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.