Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just answer the third question ABC Computer Company has a $25,000,000 factory in Kanata. During the current year, ABC builds $3,000,000 worth of computer components.

Just answer the third question
image text in transcribed
ABC Computer Company has a $25,000,000 factory in Kanata. During the current year, ABC builds $3,000,000 worth of computer components. ABC's costs are labour, $1,300,000, interest on debt. $50,000; and taxes, $200,000. ABC sells all its output to XYZ Supercomputer. Using ABC's components, XYZ builds five supercomputors at a cost of $800,000 each ($600,000 worth of components, $150,000 in labour costs, and $50,000 in taxes per computer) XYZ has a $30,000,000 factory, XYZ sells four of the supercomputers for $1,100,000 each; at year's und it has not sold the fifth. The unnold computer is carried on XYZ's books as an $800,000 increase in Inventory. Assume that ABC and XYZ are incorporated companies, and that XYZ sols to companies 1. Calculate the contributions to GDP of these transactions, showing that all three approaches give the same anawet Using the product approach the value added by ABC is $3,000,000 the value added by XYZ I $ 2,200,000, and the total contribution to GDP of these transactions in $ 5.200,000 Using the expenditure approach, private consumption expenditure is $0 investment in $ 5,200,000 government purchases of goods and services are $0, net exports are $ 0 and GDP is $5,200.000 Using the income approach, compensation of employees is $2,050,000) gross operating surplus is $2,300,000) gross mixed income is $0 taxes less subsidies on production are $ 200,000). tnxes less subsides on products and imports are $0) and GDP is $5,650,000)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for business decision making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

978-1119191674, 047053477X, 111919167X, 978-0470534779

More Books

Students also viewed these Accounting questions

Question

What did I expect or hope to achieve by it?

Answered: 1 week ago