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lesantik [10]
2 years ago
13

The city of Ann Arbor Michigan buys a police car manufactured in Germany. In the GDP accounts this transaction is included in a.

in government expenditures and exports. b. government expenditures and imports. c. exports, but not government expenditures. d. imports, but not government expenditures.
Business
1 answer:
natima [27]2 years ago
8 0

Answer:

A. In government expenditures and imports.

Explanation:

We are informed about how The city of Ann Arbor Michigan buys a police car manufactured in Germany.

In the case of this transaction, it is included in GDP accounts in government expenditures and imports.

GDP which is known as Gross Domestic Product can be explained as the total market value of domestic finished goods/service that are been produced in a particular period in a country. The net export, as well as consumption and government expenditures and investment are taking into consideration in GDP. It should be noted that social security payment is not accounted with GDP

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You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the first payment will not occur for exac
allsm [11]

Answer:

PV= $620,921.32

Explanation:

Giving the following information:

Cash flow (Cf)= $100,000

Interest rate (i)= 7.25%

<u>First, we need to calculate the value of the investment at the moment of the first payment (five years from now). </u>To calculate the present value we need to use the following formula:

PV= Cf / i

PV= 100,000 / 0.1

PV= $1,000,000

<u>Now, the value today:</u>

PV= FV / (1 + i)^n

PV= 1,000,000 / (1.1^5)

PV= $620,921.32

8 0
2 years ago
Part 1 Household consumption, which accounts for about _______% of the economy, grew at a 4.2% annualized rate during the second
kykrilka [37]

Answer:

1) Household consumption, which accounts for about <u>68%*</u> of the economy, grew at a 4.2% annualized rate during the second quarter of 2016.

*Data obtained from federal government sources.

2) Since household/consumer spending (consumption) represents almost 70% of the nation's GDP, any change will cause a major change in the total GDP. E.g. if consumption increases by 5%, then the whole economy will grow by 5% x 68% = 3.4%.

3 0
3 years ago
When the company pays rent expense for the current month, what is the effect on the accounting equation for that company?
GREYUIT [131]

Answer:

decrease the stockholder equity and decrease in assets

Explanation:

As we know, the accounting equation is  

Total assets = Total liabilities + stockholder equity

In the given case,  

The rent is paid for the current month, so the journal entry would be

Rent expense A/c Dr XXXXX

    To Cash A/c XXXXX

(Being rent is paid)

So it decreases the stockholder equity as it includes the income and expenses part and it decreases in assets as it reduces the cash balance

3 0
3 years ago
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Mater
Delvig [45]

Answer:

Zoe Company

a) Statement of Cost of Goods Manufactured:

Direct materials cost                 $90,000

Direct labor                                  25,000

Factory overhead                        37,000

Work in process, March 1           22,000

Work in process, March 31        (23,500)

Cost of goods manufactured $150,500

b) Income Statement for the month ended March 31:

Sales                                                                    $257,000

Finished goods inventory, March 1    $21,000

Cost of goods manufactured             150,500

Finished goods inventory, March 31  (30,000)

Cost of goods sold                                              $141,500

Gross profit                                                          $115,500

Sales and administrative expenses                      79,000

Net Income                                                          $36,500

c) Inventory Section of the Balance Sheet as of March 31:

Current Assets:

Inventory:

Materials inventory, March 31              $8,000

Work in process, March 31                   23,500

Finished goods inventory, March 31   30,000

Total inventory                                    $61,500

Explanation:

a) Data and Calculations:

Purchases     $92,000

Materials inventory, March 1 6,000

Materials inventory, March 31 8,000

Direct labor 25,000

Factory overhead 37,000

Work in process, March 1 22,000

Work in process, March 31 23,500

Finished goods inventory, March 1 21,000

Finished goods inventory, March 31 30,000

Sales 257,000

Sales and administrative expenses 79,000

b) Materials inventory, March 1   $6,000

Purchases                                    92,000

Materials inventory, March 31       8,000

Direct materials cost                 $90,000

4 0
3 years ago
Valence Electronics has 213 million shares outstanding. It expects earnings at the end of the year of $800 million. Valence pays
Dvinal [7]

Answer:

$75.12 million

Explanation:

For computation of Valence's share price first we need to find out the share price which is shown below:-

Share price = (Paid earning of Valence × Ended year of expected earning) ÷ (Equity cost of capital - Expected growth rate)

= (40% × $800 million) ÷ (9% - 7%)

= (0.4 × $800 million) ÷ (0.09 - 0.07)

= $320 million ÷ 0.02

= $16,000 million

Now, Valence's share price

= Total value ÷ Outstanding total shares

= $16,000 million ÷ 213 million

= $75.12 million

3 0
3 years ago
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