Please see attached image.In the question, the unilateral transfer is stated as a debit, but in the calculation for the answer, it is calculated as a credit(Gain). Why? Question1. You work for the Bureau of Economic Analysis (BEA) of the U.S. Department ofCommerce. Your supervisor gives you the following U.S. International TransactionsAccounts for the Year 20XX (figures are in billions of dollars) and wants it reported in acoherent fashion in accordance with accepted conventions:Investment income payments (27.3); Export of goods 80.6; Balance of services 5.1; Capitaloutflow (44.5); Imports of goods (110.9); Change in Official Reserves 2; Investment incomereceipts 24.7; Capital inflow 73.6; Net unilateral transfers (3.3).(a) He wants you to compute the balances of trade, current account, capital account andstatistical discrepancy.Expert AnswerIntroduction:We are going to calculate trade balance, current account, capital account and statisticaldiscrepancy to answer this question.Approach:Trade Balance = Exports - Imports = 80.6 - 110.9 = -30.3 = (30.3)Current Account = Balance of services + Trade Balance + Net Unilateral transfers + Net InvestmentIncomeCurrent Account = Balance of services + Trade Balance + Net Unilateral transfers + InvestmentIncome Receipts - Investment Income paymentsCurrent Account Balance= 5.1 - 30.3 +3.3+(24.7-27.3) = -24.5 =(24.5)Capital Account Balance = Capital Inflow + Capital Outflow + Changes in Official reserves = 73.6 -44.5 +2 = 31.1Statistical Discrepancy = -(Current Account Balance + Capital Account Balance) = -(-24.5+31.1) =-6.6

Balance of Payments is nothing but the record of the economic transactions of the residents of a…

Answered: uestion, the unilateral transfer is…

uestion, the unilateral transfer is stated as a debit, but in the calculation for the answer, it is calculated as a credit(Gain). Why?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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