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astra-53 [7]
3 years ago
5

Nichols Enterprises has an investment in 250 bonds of Elliott Electronics that Nichols accounts for as a security available for

sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $1,000 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $1,200 per bond. Nichols should carry the Elliott investment on its balance sheet at:
Business
1 answer:
abruzzese [7]3 years ago
4 0

Answer:

securities available for trade: 250,000

Explanation:

The investment will be trade at market value. which is 1,200

Nichols cannot set the price of an assetat his own will. If possible a company will do it to increase his assets and look more solid than it is.

To evaluate the bonds at 1,200 the market price will need to be at 1,200

Currently the price third parties gives the security is 1,000 so it should carry the investment  at

250 bonds x 1,000 market value = 250,000

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Generally, revenue from sales should be recognized at a point when
qaws [65]

Answer:

D. none of these answer choices are correct.

Explanation:

The principle of revenue recognition occurs when the revenue is realized or earned either cash is received or not and it also serves the accounting accrual basis. Realizable also means that the buyer gets the product but the payment is made afterward.

In this, it does not depend on cash transactions.  

Hence, the option D is correct

3 0
2 years ago
You plan to save $2,400 a year and earn an average rate of interest of 5.6 percent. How much more will your savings be worth at
mixas84 [53]

Answer:

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

Explanation:

Giving the following information:

Annual deposit= $2,400

Interest rate= 5.6%

Number of periods= 40

<u>First, we will calculate the future value when the deposits are made at the end:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,400*[(1.056^40) - 1]} / 0.056

FV= $336,091.14

<u>Now, if the deposits are made at the beginning:</u>

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

FV= 336,091.14 + [(2,400*1.056^40) - 2,400]

FV= 336,091.14 + 18,821.10

FV= $354,912.24

Difference= 354,912.24 - 336,091.14

Difference= $18,821.1

If the deposits are made at the beginning of the year, the future value will increase by $18,821.1.-

8 0
3 years ago
The current rates for an 80/20 mortgages are 4.15% for the first mortgages and 9.75% for the second mortgage. On a $200,000 30 y
olganol [36]

Answer: The actual rate of the mortgage is 5.27%.

Since we're taking two mortgages for a total of $200,000 for 30 years, we can find the actual rate of the mortgage by finding the weighted average of the two rates. The weights in this case will be the proportion of loan taken at each rate

We have

Rates       Weights      Rates * Weights

4.15            0.80     4.15 * 0.80 = 3.32

9.75             0.20    9.75 * 0.20 = 1.95      

Total                                             5.27%  

5 0
3 years ago
In a wholly owned or closely held corporation, there really is little distinction between the functions of a board of directors
umka21 [38]

It is true that there is little distinction between the functions of a board of directors and those of a board of advisers in a wholly owned or closely held corporation.

<h3>What is a board of directors and board of advisors? </h3>

A board of directors refers to the elected group of individuals that represent shareholders while the board of advisors refers to the group of individuals who are appointed to provide counsel businesses.

In conclusion, it is true that there is little distinction between the functions of a board of directors and those of a board of advisers in a wholly owned or closely held corporation.

Read more about board

<em>brainly.com/question/4771644</em>

8 0
2 years ago
What is<br> the relationship between supply and<br> demand and price ?
valina [46]

The more supply the lower the price

The higher the demand the lower the supply

The higher price the lower the demand

5 0
3 years ago
Read 2 more answers
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