If You Buy a DVD Player Produced in Japan,a

question 246

Multiple Choice

If you buy a DVD player produced in Japan,a

• A) good was exported by Japan and imported by the United States.
• B) good was imported by Japan and by the United States.
• C) service was imported by Japan and exported by the United States.
• D) service was exported by Japan and imported by the United States.
• E) good was exported by Japan and by the United States.

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Definitions:

Corporation

A legal entity owned by shareholders with rights and responsibilities distinct from those of its owners, recognized by law as a single entity.

Pro Rata Distribution

Pro rata distribution is a method of allocating a proportional amount or share of something such as dividends, assets, costs, or liabilities among all parties based on their respective shares.

FMV

Fair Market Value, the price that property or an asset would sell for on the open market under current conditions.

Basis

The original value or cost of an asset for tax purposes, used to determine capital gains or losses.