{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

HW_Ch_1-2 Solutions

HW_Ch_1-2 Solutions - E xercises EX 1-1 1 a 2 c 3 c 4 c 5 b...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercises EX 1-1 1. a 2. c 3. c 4. c 5. b 6. c 7. d 8. c 9. b 10.c EX 1-2 1. b 2. b 3. d 4. b 5. a 6. c 7. a 8. b 9. a 10.b
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Problems P. 1-1. a. The authority’s cash requirements in Year 1 would be as follows (in millions): Wages, salaries and other operating costs $6.0 Purchase of equipment $10.0 Less: Issuance of bonds 10.0 0.0 Interest on bonds 0.5 Purchase of additional equipment 0.9 Total cash outlays (revenue requirements) $7.4 b. In Year 2, they would be: Wages, salaries and other operating costs $6.0 Interest on bonds 0.5 Total cash outlays (revenue requirements) $6.5 c. In Year 10, they would be: Wages, salaries and other operating costs $6.0 Interest on bonds 0.5 Repayment of bonds 10.0 Total cash outlays (revenue requirements)$16.5 d. The budgeting and taxing policies fail to promote interperiod equity. The economic costs incurred by the authority — the wages, salaries, other operating costs, and portion of equipment consumed — were the same each year. Yet, tax payments will depend on when the equipment was purchased and when the debt was repaid. Taxpayers of Year 10 will have to pay for equipment that provided services to the taxpayers of the previous nine years.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern