The answer to the case illustrated in the question given is (C) No; she should save more for her emergency fund because she has saved less than the recommended amount.
This is because her emergency fund is actually less than the amount that most people recommend you should have: which is at least around 3 months’ worth of your living expense. It is even better if you can save for at least 6 months’ worth of your living expense.
Answer:
The value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory is:
$486,000.
Explanation:
a) Data and Calculations:
Net asset value of Satisfactory = $1,944,000 on acquisition date
Stake purchased by Perfection = 25%
25% of the net asset value of Satisfactory = $486,000 ($1,944,000 * 25%)
b) There is no goodwill arising from the investment in Satisfactory. The equity method will be used to account for the investment in the Satisfactory. The Equity Method involves recording the investment in an associated company like Satisfactory when Perfection's ownership interest in Satisfactory is valued at 20–50% of the net assets.
Answer:
<u>Price</u> risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
<u>Reinvestment</u> risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.
Which type of risk is more relevant to an investor depends on the investor's <u>investment horizon</u>, which is the period of time an investor plans to hold a particular investment.
Answer:
If the asset’s book value exceeds the proceeds received from disposal by sale, the company records a gain.
Explanation:
All of the other options are true except for this option;
If the asset’s book value exceeds the proceeds received from disposal by sale, the company records a gain.
It is expected that the company should record a loss rather.
Hence, If the sales of a plant asset exceeds its book value, the company records a gain.
