Amanufacturer produces 500,000 mp3 players in the first quarter of the year. it sells 400,000 of them and adds 100,000 of them to inventory. all the players added to inventory are purchased by consumers in the second quarter. how are the 100,000 that go into inventory counted in gdp? the mp3 players will be counted as a change in inventory in the first quarter, and when sold in the second quarter will raise gdp by the value of the mp3 players. since the mp3 players were purchased by consumers in the second quarter, they will be counted as an increase in second- quarter gdp. since the mp3 players eventually will be bought by consumers, they will be included as consumption in the first quarter. the mp3 players will be counted as a change in inventory in the first quarter, and so will be included in first quarter gdp as part of investment.

True or false: on january 1, year one, the epstein corporation buys a plot of land with a four-story office building. the company believes the building is worth $1.9 million and has an estimated life of twenty years (with no anticipated residual value). the straight-line method is used. the land has an assessed value of $100,000. because the seller was interested in a quick sale, epstein was able to buy this land and building for $1.7 million. depreciation expense to be recognized in year one is $80,750.

Blue spruce corp. has the following transactions during august of the current year. aug. 1 issues shares of common stock to investors in exchange for $10,170. 4 pays insurance in advance for 3 months, $1,720. 16 receives $710 from clients for services rendered. 27 pays the secretary $740 salary. indicate the basic analysis and the debit-credit analysis.

1. alwaysrain irrigation, inc. would like to determine capacity requirements for the next four years. currently, two production lines are in place for making bronze and plastic sprinklers. three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. management has forecast demand for the next four years as follows: both production lines can produce all the different types of nozzles. the bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. the plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. three bronze machines and only one injection molding machine are available. what are the capacity requirements for the next four years? (assume that there is no learning.)