“it is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy. the ta[i]lor does not attempt to make his own shoes, but buys them of the shoemaker. the shoemaker does not attempt to make his own clothes, but employs a all of them find it [in their best interests] to employ their whole industry in a way in which they have some advantage over their neighbours, and to else they have occasion for.” from adam smith, an inquiry into the nature and causes of the wealth of nations, 1776. what economic concept is adam smith describing in this passage? a. division of labor c. productivity b. specialization d. paradox of value

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.