Suppose Lufthansa buys 10 Boeing 747s for $150 million in 1991, financed by a five year loan from the US Export Import Bank. There is a one-year grace period on principal and interest payments. The net impact of this sale in 1991 is
A) a $150 million reduction in the U.S. trade deficit.
B) a $150 million reduction in the U.S. capital account surplus.
C) zero change in the U.S. balance of payments in 1991.
D) all of the above.
Answer: D
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Kershaw Mfg. depreciates using the straight-line method for financial statement purposes and an accelerated method for tax purposes. The cumulative difference between the two methods grew in the current year. How would Kershaw ADJUST THE PP&E account from the straight-line to the tax depreciation method?
a. Multiply the portion of the deferred tax liability relating to PP&E by the tax rate and add that amount to reported PP&E. b. Divide the portion of the deferred tax liability relating to PP&E by the tax rate and deduct that amount from reported PP&E. c. Multiply the portion of the deferred tax liability relating to PP&E by the tax rate and deduct that amount from reported PP&E. d. Divide the portion of the deferred tax liability relating to PP&E by the tax rate and add that amount to reported PP&E.
Those expensive Coke television ads featuring computer-generated images are primarily a type of which type of advertising?
a. persuasive b. competitive c. comparative d. reminder