Answer:
Explanation:
Available for sale securities are required to be reported at fair value.
Hence the difference between amortized cost and fair value is required to be transferred to other comprehensive income.
The amount of credit loss that Marin should report on this available for sale security at 31-12-2020
= $52,000 - $44,000
= $8,000
The company can't afford to pay their employees. If you have 100$ you can have ten people working for 10$ an hour and pay everyone for one hour. You can't have 10 people getting paid 20$ because the company would lose money. So if they are paid 20$ per hour, the company can only afford to hire 5 employees.
Answer:
$4,000
Explanation:
The difference between the face value of note and the issuance value of the note is discount. This discount is recorded and amortized over the note life to maturity. As the note is for 6 months and There are also six months from June 30, to December 31. So, all the Discount of $4,000 ($50,000-$46,000) will be recognized as Interest Income. This discount can be amortized and recognized as Interest Income on monthly basis or collectively at the year end.
Answer:
The answer is b. Surpluses drive down prices
Explanation:
If you have a large volume of crops, it would not drive up the price simply because there is not a lot of demand for the crop. In that sense, both c and d (even though d is relevant to the equipment) are incorrect. If there is a lot of surplus, farmers will have to lower their prices in order to sell it. They lose in profit which is why large crop surplus are a problem for farmers.
