Answer:
b. spending on goods to be used in future production
Explanation:
There are basically four components of Gross domestic product (GDP) which are as follows
GDP = Consumption spending + investment + government spending + net exports
where,
Net exports would equal to
= Export-import
Here, investment means the investment is done on goods which increase in productivity for the future period so that overall output could be increased
Trevor restores antique cars and sells them for profit. This is an example of CAPITAL GAINS income.
Capital Gain is a profit earned from the sale of a property or an investment. It is not only limited to vehicles. It is also applicable to real estate sales. Every Capital Gain has its corresponding taxes to be paid to the government.
Answer:
Straight-line method:
- depreciation expense year 1 = ($39,000 - $4,000) / 5 = $7,000
- depreciation expense year 2 = $7,000
- depreciation expense year 3 = $7,000
- depreciation expense year 4 = $7,000
- depreciation expense year 5 = $7,000
200 declining balance method:
- depreciation expense year 1 = 2 x 1/5 x $39,000 = $15,600
- depreciation expense year 2 = 2 x 1/5 x $23,400 = $9,360
- depreciation expense year 3 = 2 x 1/5 x $14,040 = $5,616
- depreciation expense year 4 = 2 x 1/5 x $8,424 = $3,369.60
- depreciation expense year 5 = $5,054.40 - $4,000 = $1,054.40
Sum-of-years-digits method:
- depreciation expense year 1 = 5/15 x $35,000 = $11,666.67
- depreciation expense year 2 = 4/15 x $35,000 = $9,333.33
- depreciation expense year 3 = 3/15 x $35,000 = $7,000
- depreciation expense year 4 = 2/15 x $35,000 = $4,666.67
- depreciation expense year 5 = 1/15 x $35,000 = $2,333.33
D. $137; $100
The base year cost is $100. 37% of this is $37 so the total cost of the basket of goods is $137.
