Answer:
$205,000
Explanation:
Let us assume Owners' equity at the beginning be X
So, the Increase in Owners' equity is $260,000 - X
As we know that
Accounting equation is
Total assets = Total liabilities + total stockholder equity
So,
Total Increase in Assets = Total Increase in Liabilities + Increase in Owners' equity
$134,000 = $79,000 + $260,000 - X
$134,000 = $339,000 - X
So, the X =
= $339,000 - $134,000
= $205,000
Answer:
2011 Value of investment in Mayfair
= Beginning investment value + Portion of Mayfair net income - Portion of Mayfair dividends
= 5,700,000 + (40% * 2,250,000) - (300,000 shares * 0.15)
= $6,555,000
2012 Value of investment
= Beginning investment value + Portion of Mayfair net income - Portion of Mayfair dividends
= 6,555,000 + (40% * -180,000) - (300,000 * 0.15)
= $6,438,000
Answer:
Demand drops to zero
Explanation:
Infinite elasticity of demand is also called perfect elasticity of demand.
In this scenario the demand for a product is attached to it's price.
There is an infinite change in the quantity demanded as a result of change in price.
Graphically it is a horizontal demand curve as represented in the attached
Even a small increase in price will cause demand to fall to zero.
Examples are luxury goods such as high end cars and expensive jewelry.
Answer:
deferral
Explanation:
Adjusting entries are when changes are made to already recorded journal entries.
Categories of adjusting entries :
- accrued revenues
- accrued expenses
- unearned revenues
- prepaid expenses
- depreciation.
Prepaid expenses are payments made for services yet to be delivered.
For example, paying for a year's worth of subscription on your streaming service
Prepaid expenses is an example of deferred payment, so the adjustment should be a deferral
Answer:
D. Recommendation to buy life insurance does not make the investment advice any less objective.
Explanation:
investment adviser representative are also regarded as financial planner are advisers that gives advice in term of financial service to firms or individual or his/ her customer
In the situation described in the question whereby, the agent recommends that a customer sell a mutual fund holding and use the proceeds to buy life insurance, then these information are needed to be disclosed to the customer
✓. Sale of the mutual fund mayor is alt in a taxable event to the customer
✓Recommendation to purchase life insurance is in no way connected to the services offered by the advisory firm
✓Agent will earn a commission on the life insurance purchased by the customer
