The truck manufacturer purchased $2,000 in intermediate goods produced this year by domestic firms and $5,000 from foreign firms to make 2 trucks. It sold the first truck for $21,000 to a domestic retailer who sold it to Mohd for $26,000. It sold the second truck to the domestic government for $28,000. Assuming everything happened this year, for these two trucks, what was the the manufacturer's value added?
The truck manufacturer purchased $2,000 in intermediate goods produced this year by domestic firms and $5,000 from foreign firms to make 2 trucks. It sold the first truck for $21,000 to a domestic retailer who sold it to Mohd for $26,000. It sold the second truck to the domestic government for $28,000. Assuming everything happened this year, for these two trucks, what was the the manufacturer's value added?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The truck manufacturer purchased $2,000 in intermediate goods produced this year by domestic firms and $5,000 from foreign firms to make 2 trucks. It sold the first truck for $21,000 to a domestic retailer who sold it to Mohd for $26,000. It sold the second truck to the domestic government for $28,000.
Assuming everything happened this year, for these two trucks, what was the the manufacturer's value added?
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