Suppose an economics professor receives a $10,000 royalty check from a foreign publishing company and deposits the amount in a local bank. This transaction would be recorded as:

Question

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This transaction is recorded as a $10,000 credit entry in the domestic services account because it represents income received from abroad for intellectual property, which is considered a service. The credit entry indicates an increase in the country's exports of services.

Suppose an Economics Professor Receives a $10,000 Royalty Check from a Foreign