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3 years ago

Storm, Inc. purchased the following available-for-sale securities during 2016, its first year of operations:

Business

1 answer:

prisoha [69]3 years ago

5 0

Answer:

As per accounting standards available-for-sale securities are recorded at fair value through profit and loss account or other comprehensive income. We assume that company choose to record it at fair value through profit and loss account.

The answer of each requirement is given below.

a. Provide the journal entry to adjust the available-for-sale security portfolio to fair value on December 31, 2016

Loss on valuation $ 4,250

Investment Cost $ 4,250

Working

Dust Devil, Inc. = 40 * 1900 = 76,000 - 81,700 = -5,700

Gale Co. = 75 * 850 = 63,750 - 68,000 = -4,250

Whirlwind Co. = 42 * 2850 = 119,700 - 114,000 = 5,700

Profit/ (Loss) = (4,250)

b. Is there any impact of December 31, 2016 journal entry on the income statement

The company income for the year will be reduced by ($ 4,250).

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Tyler has been operating his business as a sole proprietorship but decides that it is too much work for him to do alone. He does

svp [43]

Answer:

business partner

Explanation:

Business partner -

It refers to the authority in the business , which has the right to take decisions for the project of the business , is referred to as business partner .

The relation between the two or more people i.e. , the business partners can be on the contract basis or exclusive in nature .

Hence , from the given scenario of the question ,

Tyler need a buisness partner for his business .

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3 years ago

Traditionally, Fed policymakers have been ________ to use higher interest rates to head off potential asset bubbles ________.

r-ruslan [8.4K]

Answer:

D) hesitant; because it may cause a slowdown in the economy

Explanation:

The FED usually increases interest rates to halt rapidly increasing inflation, and it could be useful to calm down potential asset bubbles. The problem with raising interest rates is that it immediately cools down the economy and slow down economic growth. It might even stop economic growth and cause a recession.

Since higher interest rates increase the cost of borrowing for everyone in the economy (individuals, businesses), consumption decreases and investment increases. The problem with this is that private consumption represents nearly 70% of the GDP and the money multiplier is responsible for a lot of this.

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3 years ago

The Taffy Trust is a simple trust. Sean is its sole beneficiary. In the current year, the trust earns $12,000 in taxable interes

algol [13]

Solution and Explanation:

a. Accounting income is computed below:

Taxable interest 12,000.00

Rental income 30,000.00

Long term capital gain 0.00

Long term capital loss 0.00

Fees 0.00

Less: depreciation -2,800.00

Trust accounting income 39,200.00

b. One half of fiducary's fee = 6500 divided by 2 = 3250. This amount will be allocated to accounting income of the trust.

Taxable interest 12,000.00

Rental income 30,000.00

Long term capital gain 4,000.00

Long term capital loss -1,100.00

Fees -3,250.00

Depreciation -2,800.00

Trust accounting income 38,850.00

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3 years ago

One of the difficulties associated with value-based pricing is that

nikdorinn [45]

One of the difficulties associated with value-based pricing is that the producer may end up running at loss because the price does cover the cost incurred during production.

The value-based pricing entails fixing of prices based on customer's perceived value of the product.

The companies who practiced the value-based pricing do so to make sure the product price and expectation of the customers match.

However, one of the difficulties associated with value-based pricing is that the producer may end up running at loss because the price does cover the cost incurred during production.

Learn more about this here

brainly.com/question/20699420

7 0

3 years ago

HUD, Co. had a beginning retained earnings of $29,825. For the year, the company had net income of $6,540 and paid dividends of

marissa [1.9K]

Answer:

$38,265

Explanation:

Beg RE = $29,825

Plus Net Income = $6,540

Minus Dividends = ($2550)

Plus New Stock = $4450

Ending RE = $38,265

6 0

2 years ago