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Ratling [72]
3 years ago
10

S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2018,

S&L purchased Coca-Cola bonds for $875,000 and sold the the bonds on January 3, 2019, for $881,500. At December 31, the bonds had a fair value of $873,000. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment (ignoring interest)?
Business
1 answer:
baherus [9]3 years ago
5 0

Answer:

2018-unrealized loss of $2,000

2019 -gain on sale of investments of $8,500

Explanation:

As at December 31st 2018,the amount S& L would include in its pretax income as a result of the bond investment is the difference between the purchase of the bond of $875,000 and the fair value of the investment at year end of $873,000,effectively that gives an unrealized loss of $2,000($873,000-$875,000)

However, in the year 2019 ,the amount to be included in pretax amount in respect of the bond is the difference between the fair value in 2018 and the proceeds from the sale of investment of $881,500 i.e a gain of $8,500($881,500-$873,000)

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Kryger [21]

Answer:

answer B

Explanation:

the US Bureau of Labor Statistic estimates that roughly 20% of all small businesses will fail/close during thir first year, meaning B is the only correct option

hope this helps!!

8 0
3 years ago
Read 2 more answers
If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the quanti
elixir [45]

Answer:

The quantity demanded will decrease by 2%.

Explanation:

This can be determined using the elasticity formula as follows:

e = Percentage change in quantity demanded change / Percentage change in price ........ (1)

Where;

e = elasticity of demand for college textbooks = -0.1

Percentage change in quantity demanded change = ?

Percentage change in price = 20%

Substituting the values into equation (1) and solve for Percentage change in quantity demanded change

-0.1 = Percentage change in quantity demanded change / 20%

Percentage change in quantity demanded change = -0.1 * 20% = -0.02, or -2%

Since the Percentage change in quantity demanded change is negative 2%, it implies that the quantity demanded will decrease by 2%.

6 0
3 years ago
The United States economy is considered by the Institute for Management Development to be the most competitive economy because:_
ziro4ka [17]

Answer:

a. of widespread entrepreneurship.

Explanation:

According to the Institute for Management Development, a business education school that is situated in Lausanne, Switzerland. In its annual rankings on the performance of 63 economies across the globe. In 2018 rated the United States of America as the topmost economy in competitiveness. Based on various data gathered and surveyed, the education school cited "widespread entrepreneurship" as the major reason behind it.

8 0
4 years ago
Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal
Zina [86]

Answer:

Explanation:

The journal entry is shown below:

Amortization expense - Patent A/c Dr $32,380

     To Patent A/c $32,380

(Being amortization expense for the first year is recorded)

The computation is shown below"

= Purchase cost of patent ÷ estimated useful life

= $161,900 ÷ 5 years

= $32,380

For the intangible assets, the amortization expense is considered,not the depreciation expense and the same is to be taken.

7 0
3 years ago
In the context of performance management, which term refers to a measure that obtains consistency of results over time?
kherson [118]

Test retest reliability

The  performance management,term refers to a measure that obtains consistency of results over time.

It also carries the idea of performance appraisal through which more work can be achieved by rewarding the personnel who achieve their targets on time and show their results.

It helps optimize the performance to obtain consistency over the time with providing feedback and improvement in the performance. Psychometrics tests and evaluation test are used for improvement of employee performance. Several policies and procedures are also implemented for their welfare.

To learn more about performance management here,

brainly.com/question/16927603

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5 0
1 year ago
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