Answer:
2018: No pretax income or loss
2019: Income of $2,000.
Explanation:
Given that,
On December 27, 2018
Purchased Coca-Cola bonds at par = $700,000
sold the bonds on January 3, 2019 = $702,000
On December 31, the bonds had a fair value = $699,000
In 2018:
Fair value is less than the purchase value of bonds on 31st December. Therefore, the loss has to be reported under the other comprehensive income.
Hence, there is no income or loss in the year 2018.
In 2019:
Gain/loss on the sale of bonds:
= Sale value - Purchase value
= $702,000 - $700,000
= $2,000
Therefore, the amount of pretax earnings in the year 2019 is $2,000.
<span>Due to the defect, which was something either caused by or for which the company would be solely responsible for, Brandon suffered some sort of damage or harm. Weather it was physically, emotionally or financially, these are all ways the damaged product harmed the customer.</span>
B) Cooperation is not an aspect of Capitalism.
Answer:
Total money= 1102.5+2100+3000= $6202.5
Explanation:
Giving the following information:
Your employer has agreed to place year-end deposits of $1,000, $2,000 and $3,000 into your retirement account. The $1,000 deposit will be one year from today, the $2,000 deposit two years from today, and the $3,000 deposit three years from today. If your account earns 5% per year.
We need to use the final value formula:
FV=PV*(1+i)^n
PV= present value
i= interest rate
n= number of years
First deposit will generate interest for 2 years:
FV= 1000*(1.05^2)= $1102.5
Second deposit will generate interest for one year
FV= 2000*(1.05^1)=$2100
The third deposit will not generate interest.
Total money= 1102.5+2100+3000= $6202.5
Answer: Option (b) is correct.
Explanation:
According to the theory of comparative advantage, a country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country as compared to the other country.
Hence, a country exports the commodity in which it has a comparative advantage and imports the commodity in which it has a comparative disadvantage because the opportunity cost of producing these commodities is higher than the other country.