While developing a new product line, cook company spent $3 million two years ago to build a plant for a new product. it then decided not to go forward with the project, so the building is available for sale or for a new product. cook owns the building free and clear⎯there is no mortgage on it. which of the following statements is correct?
a. since the building has been paid for, it can be used by another project with no additional cost. therefore, it should not be reflected in the cash flows for any new project.
b. if the building could be sold, then the before-tax proceeds that would be generated by any such sale should be charged as a cost to any new project that would use it.
c. this is an example of an externality, because the very existence of the building affects the cash flows for any new project that rowell might consider.
d. if there is a mortgage loan on the building, then the interest on that loan would have to be charged to any new project that used the building.
e. none of the above.

Bernard made a gift of $500,000 to his brother in 2014. due to bernard’s prior taxable gifts he paid $200,000 of gift tax. when bernard died in 2019, the applicable gift tax credit had increased. at bernard’s death, what amount related to the $500,000 gift to his brother is included in his gross estate?

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.

Which of the following best explains how trade enables greater specialization among producers? a. trade diversifies the market by bringing specialized goods from around the world. b. trade requires distribution networks and adds one more step to the production process. c. trade enables producers to open up new markets for their goods and services. d. trade allows people to focus on one kind of production and trade for their other needs.