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.

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u.s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u.s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u.s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u.s. gaap balances to ifrs.

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. the production order quantity for this problem is approximately: