. Calculating tax incidence Suppose that the local government of Ogden decides to institute a tax on seltzer consumers. Before the tax, 20 billion packs of seltzer were sold every year at a price of $9 per pack. After the tax, 13 billion packs of seltzer are sold every year; consumers pay $12 per pack (including the tax), and producers receive $6 per pack. The amount of the tax on a pack of seltzer is $ burden that falls on producers is $ True per pack. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers. False per pack. Of this amount, the burden that falls on consumers is $. per pack, and the In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of itsemployees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can bepurchased at a 11% discount. During March, employees purchased 40,000 shares at a time when the market price of the shares on theNew York Stock Exchange was $18 per share.Required:Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan. (If no entry isrequired for a transaction/event, select "No journal entry required" in the first account field.)View transaction list✓No1Event1View journal entry worksheetCashGeneral JournalCompensation expenseCommon stockPaid-in capital - excess of parDebitCreditX

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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. Calculating tax incidence Suppose that the local government of Ogden decides to institute a tax on seltzer consumers. Before the tax, 20 billion packs of seltzer were sold every year at a price of $9 per pack. After the tax, 13 billion packs of seltzer are sold every year; consumers pay $12 per pack (including the tax), and producers receive $6 per pack. The amount of the tax on a pack of seltzer is $ burden that falls on producers is $ True per pack. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers. False per pack. Of this amount, the burden that falls on consumers is $. per pack, and the

In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of its
employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be
purchased at a 11% discount. During March, employees purchased 40,000 shares at a time when the market price of the shares on the
New York Stock Exchange was $18 per share.
Required:
Prepare the appropriate journal entry to record the March purchases of shares under the employee share purchase plan. (If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
✓
No
1
Event
1
View journal entry worksheet
Cash
General Journal
Compensation expense
Common stock
Paid-in capital - excess of par
Debit
Credit
X

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