JR Sells RV's

question 181

Multiple Choice

JR sells RV's. In 2010 she added $400,000 to her inventory. $100,000 of this addition was from used RV's she purchased while the remaining $300,000 was from her purchases of newly manufactured RV's. How much of JR's inventory is included in 2010 GDP?

• A)$0
• B)$100,000
• C)$300,000
• D)$400,000

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Definitions:

Fair Value

The estimated market value of an asset or liability, based on current market conditions and comparable transactions, used in financial reporting to provide a clear picture of a company’s financial health.

Exchange Rate

An exchange rate is the value of one currency expressed in terms of another currency, used to convert different currencies for trade and financial transactions.

Financial Position Date

A specific date on which the financial state of an entity is assessed, encompassing its assets, liabilities, and equity positions.

Cash-flow Hedge

A form of hedge that protects against the variability in cash flows resulting from changes in currency rates, interest rates, or commodities prices.