Answer:
The correct answer is command economy.
Explanation:
The planned or centralized economy is one in which the key questions of the economy about what, how and for whom to produce are resolved directly by the State.
The planned economy has as its main objective the equal distribution of income. For this, the State must intervene in the economy and take charge of the tasks of distribution of resources. They require the replacement of private property by the collective in the means of production, exchange and distribution. It is a type of economic system contrary to capitalism or market economy.
Answer:
The company's capital structure weights on a book value basis are:
a. 28.57% for equity, and
b. 71.43% for debt.
Explanation:
The company used straight line depreciation based on number of units produced. This can be shown as follows:
Cost = $100,000
Life = 5 years or 18,000 units
Salvage value = $10,000
By straight line method;
Depreciation cost per unit = (100,000-10,000)/18,000 = $5
After producing 4,400 units, depreciation expense = 4,400*5 = $22,000.
<u>Answer:</u> The amounts have to be determined using fair value for plant and equipment and for long term debt.
<u>Explanation:</u>
Fair value method is based on the market price of the asset. The historical value of the assets is not used to consider the sale price of the asset. Fair value is where Company J and Company K both the parties have to accept the price based on the known facts of the assets.
Company J and Company K should both accept the price out of free will and should not be out of compulsion. Company J can report based on the financial statement fair value of the assets and long term debt.
Answer:
Total value added to the GDP is $500,000.
Explanation:
Given that,
Automobile factory uses parts that are purchased from foreign countries = $100,000
Total cars produce = 30
Price of each car = $20,000
Total cars sold = 20
Left in inventory = 10
Therefore,
Addition to GDP:
= Total value of car produced - Imports(parts purchased from foreign countries)
= (Selling price of each car × Total cars produced) - $100,000
= ($20,000 × 30) - $100,000
= $600,000 - $100,000
= $500,000
Hence, total value added to the GDP is $500,000.
