Answer:The value of cars produced by a Japanese company are part of United States Gross Domestic Product (GDP) as long as the cars are produced in a factory located within U.S. territory.
The reason why is that GDP includes the final value of all goods and services produced within a country, during a specific period of time (usually a year). If the cars are produce in U.S. territory, they are counted as part of U.S. GDP, even if the company is from Japan or any other country.
Explanation:
Answer:
$0 Gain or Loss
Explanation:
Given that,
Original cost of the equipment = $100,000
Accumulated depreciation on the equipment = $40,000
Book value of the equipment:
= Original cost of the equipment - Accumulated depreciation on the equipment
= $100,000 - $40,000
= $60,000
Gain/Loss = Sale value - Book value of the equipment
= $60,000 - $60,000
= $0
Therefore, the company should recognize a $0 Gain or Loss.
Answer:
1. $46,550
2. $405,000
3. $450,600
Explanation:
1. Computation of differential cost regarding the decision to buy the model 200
Differential cost = Cost of a new model 300 - Cost of a new model 200
Differential cost = $396,350 - $349,800
Differential cost = $46,550
So, the differential cost regarding decision to buy model 200 is $46,550.
2. Sunk costs are the costs which are already incurred by the entity in the past and which are not relevant to decision made today. In this case, sunk cost is the cost of the machine purchased seven years ago for $405,000.
3. Opportunity cost is the profit forgone by chosen alternative course of action. In this case, the Opportunity cost regarding the decision to invest in the model 200 machine is $450,600.
All economic questions and problems arise from <span>C. scarcity. scarcity is defined as the lack of resources and is the opposite of abundance. If scarcity such as famine is experienced by a country or nation, there arise questions why such state happened</span>
