In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM's consumption of fixed capital (depreci is $125,000. TLM pays $600,000 to its workers, who pay $140,000 in taxes on this income. TLM pays $50,000 in corporat income taxes and pays Tina a dividend of $150,000. Tina pays taxes of $60,000 on this dividend income. TLM retains $75,000 of earnings in the business to finance future expansion. How much does this economic activity contribute to each of the following? Broprietors' income f. Corporate profits g. Personall
In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM's consumption of fixed capital (depreci is $125,000. TLM pays $600,000 to its workers, who pay $140,000 in taxes on this income. TLM pays $50,000 in corporat income taxes and pays Tina a dividend of $150,000. Tina pays taxes of $60,000 on this dividend income. TLM retains $75,000 of earnings in the business to finance future expansion. How much does this economic activity contribute to each of the following? Broprietors' income f. Corporate profits g. Personall
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 10E
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