ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Ordinary income encompasses earnings, interest, regular dividends, rental income, distributions from pensions or retirement accounts, and Social Security benefits. Ordinary income is taxed at rates ranging from 10% to 37% in 2022.

Detailed explanation-2: -An overdraft occurs when a transaction causes your checking account balance to drop below zero. Your bank or credit union will choose whether to reject or cover the transaction. If they cover the transaction, you may be charged an overdraft fee.

Detailed explanation-3: -Gross profit is the money left over after a company’s costs are deducted from its sales. Gross margin is a company’s gross profit divided by its sales and represents the amount earned in profit per dollar of sales. Gross profit is stated as a number, while gross margin is stated as a percentage.

Detailed explanation-4: -The depreciable basis is equal to the asset’s purchase price, minus any discounts, and plus any sales taxes, delivery charges, and installation fees.