1)

US farm is importing machinery from France in free trade, this means US Government in not putting any tariff or non-tariff barriers on the product.

Free trade generally encourage countries to trade in those products in which they have comparative advantage- i.e. able to produce at lower cost than other country.

Agents of France will be definitely benefitted and the benefit of US farm is depends upon the utilizing the machinery in satisfying the demand of the market.

International price is determines by several factors like-

1. Cost of Product/service.

2. Competition of product in foreign market.

3. Demand of product in foreign market.

4. Government regulation

Here the product is imported to US, exported from France. Export from France will increase as there is a demand of the product in US and will have positive impact on trade balance and agents from France will be benefitted.

US imported it from France, because of the demand of the product in the market or the machinery will be useful in producing some kinds of final goods which are in demand in market. So, in long-run the US farm will be benefitted.

2)please see the attached file.

3)Yes off-farm income should be included in income statement as revenue because as per the record, off-farm income generates around 90% of the household income for farmer. If this income in included in income statement, it will help the government to generate extra revenue and increase their spending for the welfare of the society.

4)

=> ANSWER :: $400,000

-> Explanation ::

Owner's Equity Also Know As Shareholder's Equity The Accounting Equation for Owner's Equity Is ;

   Owner's Equity = Total Assets - Total liabilites

= $500,000 - $100,000

= $400,000

So As Per The Accounting Equation The Owner's Equity Is $400,000.