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3 years ago

Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.

Business

1 answer:

Archy [21]3 years ago

3 0

Answer:

not included

consumption

government spending

consumption

business spending

consumption and inventory (consumption increases and business inventory reduces)

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

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

6. transfer payments

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During 2017, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2016 and 2015 (William

sergeinik [125]

Answer:

Explanation:

Comparative income statements for Williamson is presented below:

Particulars 2017 2016 2015

Income before income tax $180,000 $145,000 $170,000

Less:Income tax $54,000 $43,500 $51,000

Net income $126,000 $101,500 $119,000

The income tax is computed below:

For 2017

= $180,000 × 30%

= $54,000

For 2016

= $145,000 × 30%

= $43,500

For 2015

= $170,000 × 30%

= $51,000

8 0

3 years ago

Pepe, Incorporated acquired 60% of Devin Company on January 1, 2017. On that date Devin sold equipment to Pepe for $45,000. The

krek1111 [17]

Answer:

The loss on equipment recognized by Devin on its internal accounting records for 2017 is $9,000

Explanation:

By using the given information which is mentioned in the question, first we have to calculate the book value of equipment.

So, the book value of the equipment is equals to

= Cost price - accumulated depreciation

= $120,000 - $66,000

= $54,000

Now we can calculate the loss or gain on sale of equipment which is equals to

= Sale price - book value

= $45,000 - $54,000

= - $9,000

Since, the amount shows negative which means the company has suffered a loss of $9,000 on equipment

The other things like net income of 2017 and 2018 is irrelevant because it tells the net income of overall company not for equipment. So, it is not being considered while computation

Hence, the loss on equipment recognized by Devin on its internal accounting records for 2017 is $9,000

7 0

3 years ago

In economics, the cost of something is a. always measured in units of time given up to get it. b. the dollar amount of obtaining

Paha777 [63]

Answer:

The correct answer is C

Explanation:

Economies is the study of how the society uses the resources which are limited and it deals with the consumption, production as well as distribution of the goods and services.

And under the economics the cost of something like or product is defined as what the person give up in order to get something.

For example, a person wants to purchase to product, he needs to give up the money against it in order to have the product or item with him.

4 0

3 years ago

A company incurs costs of $38 per unit ($27 variable and $11 fixed) to make a product that normally sells for $56. A wholesaler

Vladimir79 [104]

Answer:

It should accept the special order at the price of $36 as the total marginal cost will be $28.5 (27 variable cost + 1.15 shipping cost).

Explanation:

Special orders are accepted only if marginal revenue increases the marginal cost. Marginal cost is the total cost incurred to fulfill any order.

In the given scenario, since the Company already has adequate capacity and it will not incur any additional fixed cost, therefore the order can be accepted by taking variable cost in to consideration.

Marginal Revenue 36

Less: Marginal Cost

Variable Cost (27)

Shipping Cost <u> (1.15)</u>

Total Profit from Order <u> 7.85</u>

4 0

3 years ago

3. You have $100 to invest. The price of XYZ stock is $100. You sell short one share of XYZ and then invest all available funds

tigry1 [53]

Answer:

HPR = holding period Return is 20%

Explanation:

Given original Investment = $100

Short sale proceeds for 1 share = $100

Investment made of $100 + short sale proceeds of $100 at 5% YTM.

So Maturity Value = Investment x (1+YTM)^number of years

= 200 x (1 + 0.05)^1 = 210

Therefore, In order to cover Short sale of 1 share, we will have to buy 1 share at a closing value of $90

As such, holding period Return = (Investment proceeds from ZCB - Buying price of stock - Investment amount) / Investment Amount

= (210 - 90 - 100) / 100 = 0.2 or 20%

Hence, HPR = holding period Return is 20%

5 0

3 years ago