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Juli2301 [7.4K]
3 years ago
11

Harry Putts Productions held investments in equity securities​ (in Ellie ​Company) with a fair value of $ 60 comma 000 at Decemb

er​ 31, 2018. These investments cost Harry Putts Productions $ 57 comma 000 on January​ 1, 2018. What is the appropriate amount for Harry Putts Productions to report for these investments on the December​ 31, 2018​, balance​ sheet? (Assume that Harry Putts has insignificant influence over Ellie ​Company.).
Business
1 answer:
makkiz [27]3 years ago
6 0

Answer:

The appropriate amount for Harry Putts Productions to report for these investments on the December​ 31, 2018​, balance​ sheet is $60,000

Explanation:

Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

The debit and credit side of the balance sheet should always be equal and balanced.  

Moreover, it always is prepared on the specified date.

The investment should be recorded in the balance sheet at the fair value instead of the market value. So, the $60,000 would be reported in the balance sheet ,not the $57,000 as it is the cost value of the investment.

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It meant a political situation among the states in which none of them achieved a power superior to the others. It is an idea of the late Middle Ages, applied to major or minor geographic regions that comprise the plurality of sovereign territories. Throughout Europe there is a legitimate feeling, always subject to interpretation, whereby any action required the confirmation of the rest of the States, the most significant case being the invasion of a territory. In this way the doctrine of just war was reached, to the problem of to what extent and to what extent the actual or imminent engraving of a State could mean a warlike justification. Transactions between contestants, neutral or rival, never ended, hence the relevance of diplomacy, as the concepts of balance, neutrality, freedom of Europe or sovereignty are interpreted continuously, while being used in conversations. Some thought of equilibrium as a natural system, because it was a consequence of international relations, and when a great power had too much force it threatened the others, and therefore, had to counteract the disproportion. Others considered it a desired goal for which he had fought.

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