<u>Complete question:</u>
Fairbanks Corporation purchased 400 shares of Sherman Inc. common stock as an investment in trading securities for $13,200. During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $34.50 per share. Prepare Fairbanks's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment
<u>Solution:</u>
Given,
Total shares = 400
Trading securities = $13,200
Cash dividend = $3.25 per share
Sales price of stock = $34.50 per share
Note: The image attached shows the journal entries of all the transactions.
Dividend revenue is
Fair value adjustment is
The above values are entered in the journal transaction.
The best answer in the space above is the extensive decision
making, as this is the one responsible of having consumers to be associated and
to have a part of high involvement. This is where consumers provide decisions
in which they think is right for them as consumers in relation with the
products they buy and brands or products that would be of benefit and would be
of likeness to them.
Answer: B
Explanation:
Automatic stabilizers are tools built into federal budgets that reduce the impact of the business cycle. They are “automatic” because they happen without requiring anyone to take any action. When aggregate demand decreases, two actions kick in automatically. First, income taxes will go down because the amount of income has decreased. At the same time, transfer payments like unemployment compensation and welfare benefits will increase. As a result, consumption will not decrease by as much as it would have.
Automatic stabilizers might not smooth out the business cycle completely, but they do make the swings of the business cycle less extreme. Automatic stabilizers are any part of the government budget that offsets fluctuations in aggregate demand. They offset fluctuations in demand by reducing taxes and increasing government spending during a recession, and they do the opposite in expansion.
Taxes work as an automatic stabilizer by increasing disposable income in downturns and decreasing disposable income during booms.
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Answer:
$414,282.91
Explanation:
The issue price of the bonds is also known as the Present Value (PV) or current price of the Bonds and is calculated as :
FV = $440,000
PMT = ($440,000 x 9%) ÷ 2 = $19,800
P/yr = 2
N = 9 x 2 = 18
I/yr = 10%
PV = ?
Using a Financial calculator to input the values as above, the PV or issue price will be $414,282.91