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lawyer [7]
3 years ago
15

Hal Gore won a $1 million prize for special contributions to environmental research. This prize is awarded for public achievemen

t, and Hal directed the awarding organization to transfer $400,000 of the award to the Environmental Protection Agency. How much of the prize should Hal include in his gross income?
A. $400,000
B. $600,000
C. $1 million
D. None of these because all prizes are excludible
E. None of these because prizes from charities are excludible
Business
1 answer:
Vikki [24]3 years ago
7 0
I think the answer is A
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Answer:

Nominal GDP in year 1 = $16

Nominal GDP in year 2 = $25

Nominal GDP in year 3  = $36

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Nominal GDP is GDP calculated using current year prices

Nominal GDP in year 1 = 4 x $4 = $16

Nominal GDP in year 2 = 5 x $5 = $25

Nominal GDP in year 3 = 6 x $6 = $36

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1 year ago
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] Widget manufacturing Company began operations on January 1. All sales are on credit. Widget has sales budgeted as $160,000 for
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When rejecting an idea because it is not in your company's best interests,
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