BC Computer Company has a $20,000,000 factory in Silicon Valley. During the current year ABC builds $2,000,000 worth of computer components. ABC's costs are labor, $1,000,000; interest on debt, $100,000; and taxes, $200,000.
ABC sells all its output to XYZ Supercomputer. Using ABC's components, XYZ builds four supercomputers at a cost of $800,000 each ($500,000 worth of components, $200,000 in labor costs, and $100,000 in taxes per computer). XYZ has a $30,000,000 factory. XYZ sells four supercomputers for $1,000,000 each.
Calculate the contributions to GDP of these transactions, showing that expenditure and income approaches give the same answer. Please, make sure that you explain your answers.