Answer: An unrealized gain, $1,500
Explanation: An unrealized gain is a gain that would result from an uncompleted trade, should it be closed. In this question, the value of the securities have gone up to $100,000 but the securities have not been sold yet. The unrealized gain, due to increase in value is $20,000 ($100,000 - $80,000).
However, there is a debit balance of $18,500 in the valuation allowance account. This account is used to offset any asset on which a deferred tax is to be paid, in this case our incomplete trade. The amount therefore has to be subtracted from the unrealized gain, leaving Bargain Company with $1,500 gain ($20,000 - $18,500).
An unrealized loss stems from a decline in value on a transaction that has not been completed yet. The entity or investor would not incur the loss unless they chose to close the deal or transaction while it is still in this state. For instance, while the shares in the above example remain unsold, the loss has not taken effect. It is only after the assets are transferred does that loss become substantiated. Waiting for the investment to recoup those declines could result in the unrealized loss being erased, or becoming a profit.
Answer:
d. $970.36
Explanation:
The market price of the bond (Pv) can be calculated as follows :
Pmt = ($1,000 × 6.5%) ÷ 2 = $32.50
P/yr = 2
i = 6.99%
n = 8 × 2 = 16
Fv = $1,000
Pv = ?
Using a Financial calculator to enter the values as above, the market price of the bond (Pv) is $970.3583 or $970.36.
True, you basically stayed in whatever class you were born into.
Answer:
Inventory turnover ratio will go down, but the weeks of supply will go up.
Explanation:
Average aggregate inventory value can be regarded as term that give description of inventory that is been held in stock. These inventory could be
work in process as well as raw materials, and finished goods, whereby all are been valued at a cost.
Inventory turnover can be regarded as financial ratio that display number of times in which a company sold or replace their inventory during a specific time period. It should be noted that Other things remaining the same, if the average aggregate inventory value goes down, Inventory turnover ratio will go down, but the weeks of supply will go up.