Answer:
$9,000
Explanation:
Vernon can only deduct the actual lease expenses incurred during 2016, and that is only three months: October, November and December.
= 3 months x $3,000 per month = $9,000
This logic applies to every expense that is paid in advance, you can only deduct payments that apply for the current tax year.
Answer:
$150
Explanation:
The formula to compute the GDP is as follows
GDP = Consumption + Investment + Government purchase + Net exports
where,
Consumption = Consumption of expenditure = $50
Investment = Business fixed investment + change in inventory + construction of new homes & apartments
= $30 + $10 + $30
= $70
The change in inventory is
= Ending inventory - beginning inventory
= $20 - $10
= $10
Government purchase = Government purchases of goods and services = $20
Net exports
= Exports - imports
= $50 - $40
= $10
So the value of GDP is
= $50 + $70 + $20 + $10
= $150
