Answer:
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Answer:
The effect of this transaction is a gain of $2,500 on disposal.
Explanation:
Cost of motor = $15000
Accumulated depreciation = $12000
Net book or carrying value = 15000 - 12000
= $3,000
Income from disposal = $5,500
Gain/(loss) on disposal = $5,500 - $3,000
= $2,500
The effect of this transaction is a gain of $2,500 on disposal.
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Answer:
U.S. net exports will fall.
Explanation:
Net export = export - import
When US income increases in relation to other countries, import by US increases faster than foreign countries, therefore, net exports fall.
