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brilliants [131]
3 years ago
15

The account Unrealized Gain (Loss) on Available-for-Sale Investments should be included on the a.statement of retained earnings

b.balance sheet as an adjustment to stockholders' equity c.income statement as other revenue (expense) d.balance sheet as an adjustment to the asset account
Business
2 answers:
Feliz [49]3 years ago
8 0

Answer: b.balance sheet as an adjustment to stockholders' equity

Explanation:

Available-for-Sale Investments are investments by the company into other companies by means of owning their bonds or stocks. These bonds or stock are made available for selling and as such the company will not hold them to maturity.

For these types of instruments, the company will record the Unrealized Gains (losses) in Other Comprehensive Income. This is a part of the Equity Section of the balance sheet.

At the end of the period, the Unrealized Gains (losses) resulting from the Available for Sale Securities do not go to the income statement but rather are put into the Accumulated Other Comprehensive Income distinction in the Equity section of the balance sheet. You can find it right below the Retained Earnings line.

telo118 [61]3 years ago
5 0

Answer:

b.balance sheet as an adjustment to stockholders' equity

Explanation:

Unrealised gain or loss is also called paper gain or loss. This is because an assets value appreciates or depreciates it is not recognised as an actual gain or loss till it is sold.

These items are recorded on accumulated other comprehensive income in the owner's section of the balance sheet.

However when the assets are to be sold in the short run it is called trading securities and are recorded on the income statement when they are sold

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Which of the following statements is true of a corporation?
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Answer:

d. Corporations pay income tax on corporate earnings, and shareholders pay personal income tax on corporate dividends and gains from the sale of stock.

Explanation:

At the end of each accounting period, the corporation is expected to pay a tax known as income tax from the taxable income earned by the corporation. This tax is paid by the corporation before the amount to be paid to the shareholders of the company in form of dividends.

The shareholders of the company are further subjected as individuals to personal income tax.

This is known as double taxation of dividend. Gains from sale of stock are also taxed under personal income tax.

3 0
3 years ago
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Abc company is hesitant about entering ukraine, because the country has been experiencing social unrest in recent years. Based o
AysviL [449]

The answer is<u> "political risk".</u>


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Political risks  are those related with changes that jump out at a nation's approaches administering organizations, and additionally outside elements that could influence organizations.

7 0
3 years ago
In a __________ distribution center, merchandise moves from vendors' trucks to retailers' delivery trucks in a matter of hours.A
Paul [167]

Answer:

Cross docking

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3 0
3 years ago
You buy a stock for which you expect to receive an annual dividend of $2.10 for the fifteen years that you plan on holding it. a
kap26 [50]
<span>You are given an annual dividend of $2.10 for the fifteen years that you plan on holding it. Also, after 15 years, you are given to sell the stock for $32.25. You are asked to find the present value of a share for this company if you want a 10% return. You have to mind that the future stock for 15 years is $32.25. You are not only going to mind the present value of the annuity at $2.10 but also the $32.25.

With the interest of r = 10% and number of years of n = 15, we get
PVIFA = 7.6061.

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$2.10 * 7.60608 = $15.973

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Thus for the present value of selling price,
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Thus the present value of the share
P = $15.973 + $7.720
P = $23.693
</span>
6 0
3 years ago
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Crazy boy [7]

Answer:

a)

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