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alekssr [168]
3 years ago
7

A firm has decided to use the fair value option to record the value of a long-term liability. if the fair value of the liability

decreases, how should the firm respond?
Business
1 answer:
emmainna [20.7K]3 years ago
8 0
A fair value option is the alternative  for a business to record its financial instruments at the fair values. Liabilities are company's financial debts or obligations that arise in the course of business operations. They may be long term or short term. In this case, if the fair value of the liability decreases, the firm should respond by crediting the unrealized Holding Gain/loss in the income account.
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The restaurant's total cost is a mixed cost that depends on customers served. The restaurant's management uses the high-low meth
harina [27]

Answer:

$29,390

Explanation:

For computing the total cost first we have to determine the variable cost per customer and the fixed cost which is shown below:

Variable cost Per Customer is

= (High total cost - low total cost) ÷ (high number of customer served - low cost of customer served)

= ($28,934 - $28,241) ÷ (14,100 - 11,214)

= $0.24

Now

Fixed cost is

= High cost - (high number of customer served × variable cost per customer)

= 28,934 - (14,100 × 0.24)

= $25,550

So, the total cost for 16,000 customers is

= Fixed cost + variable cost

= $25,550 + (16,000 × $0.24)

= $29,390

7 0
3 years ago
Renaldo Cross Company views share buybacks as treasury stock. Renaldo repurchased shares and then later sold the shares at more
allsm [11]

Answer: a) Option A

Explanation:

There will be no effect on retained earnings because retained earnings do not increase as a result of shares being sold. It increases when net income increases.

Total paid-in capital increases when stock is sold for higher than its par value or when treasury stock is sold for higher than its acquisition price. The treasury stock here was sold for higher than it was bought so this would increase the total paid in capital.

5 0
3 years ago
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natka813 [3]

Answer:

A. it will go up

Explanation:

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Answer:

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6 0
3 years ago
Read 2 more answers
Find the equation of the line that is perpendicular to the line x = −5 and passes through the point (1, 3.14).
Alisiya [41]

Answer: y = 3.14

Explanation:

Given the line x = -5

x = -5 represents a vertical line

A line perpendicular to the vertical line x=-5 will be an horizontal line.

Given the points (1, 3.14)

x = 1, y = 3.14

According to the slope intercept equation;

y = mx + c

Where, c = intercept, m = slope

Horizontal lines have a slope of 0,

Therefore,

y = 0(1) + 3.14

y = 3.14

Therefore, equation of the line which is perpendicular to x = -5 and passes through the point (1, 3.14) is y = 3.14

8 0
3 years ago
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