Ask question

Ask question

All categories

3 years ago

7

Explain why intermediate goods and services usually are not included directly in gdp. are there any circumstances under which th

ey would be included directly?

1 answer:

sashaice [31]3 years ago

3 0

GDP include the value of final goods , to avoid double counting intermediate goods are not included in GDP

You might be interested in

You have been asked to create a synthetic short position in a forward contract that permits you to sell 10 units of the underlyi

Zanzabum

Solution :

$\text{Short forward = buy a put + short a call on the same stock}$ with the same exercise price.

X = exercise price = 50

1). Position to be taken :

-- buy 10 numbers of Put options with strike price of $ 50 per unit.

--- short (sell) 10 numbers of Call option with strike price of $ 50 per unit.

2). Cost of synthetic short position = $10 \times (P-C)$ ,

where, P = price of 1 put ption

C = price of 1 call option

The Call - Put parity equation :

$\frac{C+X}{(1+r)^t}=S_0+P$

Here, C = Call premium

X = strike price of call and Put

r = annual rate of interest

t = time in years

$S_0$ = initial price of underlying

P = Put premium

Therefore,

$P-C=PV(X)-S_0=\frac{X}{(1+r)^t}-S_0$

Here, t = 1, $S_0$ = 48, X = 50

So the cost of the position is given as : $\frac{50}{(1+r)} -48$

7 0

3 years ago

neonofarm [45]

c.

d

false

d

true

true

true

7 0

3 years ago

Read 2 more answers

An investment in an available-for-sale security is transferred to trading because the company anticipates selling the stock in t

meriva

Answer:

It's fair value at the date of the transfer

Explanation:

Transfers of securities between categories of investments should be accounted for at FAIR VALUE, with unrealized holding gains or losses treated in accordance with the nature of the transfer.

Available-for-sale securities are reported at fair value; changes in value between accounting periods are included in accumulated other comprehensive income in the equity section of the balance sheet.

The fair value option gives companies the option to report most financial instruments at fair value with all gains and losses related to changes in fair value reported in the income statement.

8 0

3 years ago

The following account balances relate to the stockholders' equity accounts of Kerbs Corp. at year-end.

umka2103 [35]

Answer:

a) The amount of net income reported by Kerbs Corp. in 2020 is $299,800

b) Dividend = $17,000 ( Cash outflow from financial activities)

Common stock = $8,000 ( Cash inflow from financial activities)

Explanation:

2020 2019

Common stock, 10,500 shares 10,000 shares

$157,100 $137,800

Preferred stock, 5,000 shares $92,400 $92,400

Retained earnings $299,800 $248,500

a) Total amount of net income reported by Kerbs Corp. in 2020

= Retained earnings by the beginning of the year + Net income - cash dividend - stock dividend

Calculation of net income = Closing retained earnings + dividends - openind retained earnings

= $299,800 + ($11,300 + $17000) - $248,500

= $79,600

= $248,500 + $79,600 - $11,300 - $17,000

= $299,800

b) Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2020

Inflow to common stocks = opening common stock - closing common stock - stock dividend

= $157,100 - $137,800 - $11,300

= $8,000

Dividend = $17,000 ( Cash outflow due to dividend)

7 0

3 years ago

Feb. 2 Wrote a $350 check to establish a petty cash fund. 5 Purchased paper for the copier for $14.55 that is immediately used.

Nataly [62]

Answer:(1) Dr: petty cash $350, Cr: Cash $350, (2) Total delivery expense $16, Total Milleage expense $71, Total postage expense $65.55, Total merchandise inventory( Transportation -in) $42.4, Total office supplies $81.32, Petty Cash Balance $204.67 (3) a) Dr : Expenses $326.29, Cr : Cash $326.39 (b) Dr: petty cash $490, Cr: Cash $490

Explanation:

Journal entry to establish the petty cash fund

Dr : petty cash $350

Cr: : Cash $350

Journal entry to record the reimbursement

Dr : Expenses $326.39

Cr: Cash $326.39

Journal entry to record the increase in fund amount

Dr:petty cash $490

Cr: cash $490

Total delivery expenses $16

Total mileage expenses $71

Total postage expenses $65.55

Total merchandise inventory (Transportation -in) $42.4

Total office supplies $81.32

Amount received for reimbursement $326.39

Petty Cash Balance $204.67

7 0

3 years ago