Effect of transactions on cash flows state the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000. sold 20,000 shares of $5 par common stock for $22 per share. sold equipment with a book value of $55,800 for $60,000. purchased land for $650,000 cash. purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable. sold a new issue of $500,000 of bonds at 98. purchased 10,000 shares of $40 par common stock as treasury stock at $50 per share. paid dividends of $1.50 per share. there were 1,000,000 shares issued and 120,000 shares of treasury stock. effect amount a. $ b. $ c. $ d. $ e. $ f. $ g. $ h. $

5. understanding marginal and average tax rates consider the economy of citronia, where citizens consume only oranges. assume that oranges are priced at $1 each. the government has devised the following tax plans: plan a • consumption up to 1,000 oranges is taxed at 50%. • consumption higher than 1,000 oranges is taxed at 20%. plan b • consumption up to 2,000 oranges is taxed at 15%. • consumption higher than 2,000 oranges is taxed at 60%. use the plan a and plan b tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at the consumption levels of 300 oranges, 1,200 oranges, and 3,000 oranges, respectively. consumption level plan a plan b (quantity of oranges) marginal tax rate average tax rate marginal tax rate average tax rate (percent) (percent) (percent) (percent) 300 1,200 3,000 complete the following table by indicating whether each plan is a progressive tax system, a proportional tax system, or a regressive tax system. progressive proportional regressive plan a plan b