Question

Johnny bought a new notebook produced in November 2018 by a Japanese computer company for HK$20,000...

Johnny bought a new notebook produced in November 2018 by a Japanese computer company for HK$20,000 in Hong Kong in January 2019. Explain why this transaction has no contributions to 2019 Hong Kong GDP with TWO reasons.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Johnny bought a new notebook produced in November 2018 by a Japanese computer company for HK$20,000 in Hong Kong in January 2019.

This transaction has no contributions to 2019 Hong Kong GDP because of two reasons are :

(1) As Johnny bought a new notebook ,this would increase consumption in Hong Kong in 2019.

(2) As Johnny bough a new notebook which is produced by a Japanese computer company, so this transaction would increase imports in Hong Kong in 2019.

Because Consumption and imports both increases , therefore the effect cancels out and there is no contributions to 2019 Hong Kong GDP .

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Open Trading Company is a Hong Kong-based MNC. The company will be out of cash and...
Open Trading Company is a Hong Kong-based MNC. The company will be out of cash and needs HK$1,000,000 loan for a year period. Within a year, the company has maturing receivables to repay the loan, which is dominated in Hong Kong dollars. As the financial controller of Open Trading Company, you are requested to follow up two issues (a & b) below: (a) There are two financing options for Open Trading Company. Option 1: borrowing a loan denominated in New...
DCS Company bought equipment on January 1, 2018, for $750,000. SDCS used the sum-of-the-years’-digits (S.Y.D) method...
DCS Company bought equipment on January 1, 2018, for $750,000. SDCS used the sum-of-the-years’-digits (S.Y.D) method and estimated five-year useful life with no salvage value. In 2020, SDCS decided to change to the straight-line depreciation method for this asset. In addition, the company estimated the salvage value for $30,000. The following information shows the depreciation expense under S.Y.D methods for 2018 and 2019:     2018                2019 Sum-of-the-years’-digits (S.Y.D) 250,000           200,000 What would be the depreciation expense for this equipment...
Brokeback Towing Company is at the end of its accounting year, December 31, 2018. The following...
Brokeback Towing Company is at the end of its accounting year, December 31, 2018. The following data that must be considered were developed from the company’s records and related documents: On July 1, 2018, a two-year insurance premium on equipment in the amount of $660 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1. At the end of 2018, the unadjusted balance in the Supplies account was $1,060. A physical count of...
1. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck....
1. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck. The truck is expected to have a $2,500 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Hint: what is the year 2 depreciation amount? 2. Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $22,000 for the truck. The...
It is now late May 2018 and you, CPA, have just finished meeting with your partner,...
It is now late May 2018 and you, CPA, have just finished meeting with your partner, Ms. Wong. Ms. Wong wants your help with some clients of hers. One client, Garden Supplies Co. (GSC) has had a new shareholder buy shares. Ms. Wong wants you to tell her if GSC is a resident of Canada for tax purposes in 2018 and describe the personal tax consequences that Mrs. Gardiner will have from her 2018 share sale. You can ignore the...
It is now late May 2018 and you, CPA, have just finished meeting with your partner,...
It is now late May 2018 and you, CPA, have just finished meeting with your partner, Ms. Wong. Ms. Wong wants your help with some clients of hers. One client, Garden Supplies Co. (GSC) has had a new shareholder buy shares. Ms. Wong wants you to tell her if GSC is a resident of Canada for tax purposes in 2018 and describe the personal tax consequences that Mrs. Gardiner will have from her 2018 share sale. You can ignore the...
Note: This problem is for the 2018 tax year. Alice J. and Bruce M. Byrd are...
Note: This problem is for the 2018 tax year. Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1112, respectively. Alice's birthday is September 21, 1971, and Bruce's is June 27, 1970. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (employer identification number 98-7654321). Bruce is the manager of a Super Burgers...
PREPARE JOURNAL ENTRIES FOR THE FOLLOWING. 1. January 2: Mr. Burns opened up his new company...
PREPARE JOURNAL ENTRIES FOR THE FOLLOWING. 1. January 2: Mr. Burns opened up his new company and dissolved the old one. The balances of the accounts (with the exception of fixed assets and uncollectible) were transferred over from the old business. Mr. Burns decided that he needed to invest more money into the business in order to get operational. Mr. Burns invested $2,120,000 to create stock. 2. January 3: Mr. Burns bought a cookie making machine for $500,000 from Cookie...
REQUIREMENTS:   1)    Sales Budget   2)    Production Budget Budgets should be for the individual three (3) months of the...
REQUIREMENTS:   1)    Sales Budget   2)    Production Budget Budgets should be for the individual three (3) months of the first quarter of 2019. Include a quarterly total column on the right side. Each budget/requirement should be in a separate tab within one spreadsheet. All pages should be in portrait format using the same font. Use proper rounding and show two (2) decimal places of accuracy on dollar amounts. Round up and show whole amounts on all other figures. (Hint) Excel provides functions for...
The Cherry & White Bike Company is a small closely-held company with two owners. Its two...
The Cherry & White Bike Company is a small closely-held company with two owners. Its two owners, Charlotte and George, have decided to expand the business. You are CWB’s accountant. Your responsibilities include maintaining all accounting records and preparing annual financial statements. CWB wants to take out a loan to expand its business in the coming year. The banks and lending institutions require a set of financial statements prepared under U.S. GAAP to evaluate CWB’s credit worthiness. You must prepare...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT