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Unformatted text preview: Example #3 Using some of the gains on his stock, George donates $5,000 to a charity providing supplies to Iraq. Georges gift is a unilateral transfer from the U.S. to Iraq. Relief supplies are exported from the U.S. to Iraq. Example #4 George reads about how the U.S. Secretary of State announces it will forgive $1 billion in debt owed by the government of Pakistan. Debt forgiveness recorded on capital account as charitable gift (asset). Elimination of debt owed by Pakistan to U.S. decreases U.S. external assets....
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This note was uploaded on 03/02/2012 for the course EC 340 taught by Professor Ballie during the Spring '10 term at Michigan State University.
- Spring '10