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andriy [413]
3 years ago
8

Pete is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. For his wife's birthday, he

designs and creates an intricate maple jewelry box that takes him 20 hours to complete. By how much and in what direction does GDP change as a result of his efforts? Group of answer choices GDP rises by $1,875. GDP falls by $1,875. GDP is not affected by Pete's production of the jewelry box. GDP rises by $125.
Business
1 answer:
andreev551 [17]3 years ago
6 0

Answer:

GDP is not affected by Pete's production of the jewelry box.

Explanation:

Pete is a woodworker and works 20 hours to prepare a jewelry box to gift his wife. If Pete prepares this jewelry box to sell and earn revenue, this will be considered in GDP but in this case Pete prepares a jewelry box to give his wife as his wife's birthday gift.

All types of gifts received or given in kind are not included in Gross Domestic Production.

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6 0
3 years ago
The direct write off is used when:
Thepotemich [5.8K]

Answer:

The correct answer is letter "A": Uncollectible accounts are not anticipated or immaterial.

Explanation:

Direct write-off is a method used to record debts from credit sales. An allowance account is not used with this method but an account receivable directly written-off for the outstanding amount once it is determined to be uncollectible. This method is used for tax-reporting purposes.

3 0
3 years ago
On January 1, 20X4, Polar Corp. paid $104,000 for $100,000 par value, 9% bonds of Seal Corp. Seal had issued $300,000 of the 10-
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Answer:

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Explanation:

Amount of interest expense = [(Bond issued by 'S' company x 9%) - Amount of    

                                                   premium x (unsold bonds / Bonds issued)]

                                           =  (300,000 x 0.09) - 60000/10 x 200,000/300,000

                                          =  (27,000 - 6000) x 0.66667

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7 0
3 years ago
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A stock has an expected return of 13. 24 percent, the risk-free rate is 4. 4 percent, and the market risk premium is 8. 98 percent. 0.75 is the stock's beta.

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13% 7% + Beta x8%

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6% 8% Beta = =

=0.75

Therefore, the beta for stock using the CAPM approach is 0.75.

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