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2 years ago

In which investment category are fair values and subsequent growth of an investee not relevant for reporting?

Business

1 answer:

Iteru [2.4K]2 years ago

4 0

Answer:

The correct answer is held-to-maturity securities.

Explanation:

Securities held until expiration (HTM) are purchased to be held until expiration. The management of a company could invest in a bond that they plan to hold until they expire. As a result, there are different accounting treatments for retained securities until maturity compared to securities that must be settled in the short term.

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Concept maps work because they _______. a. are colorful and interesting b. can be drawn by almost anyone c. visually demonstrate

stich3 [128]

Answer:

concept maps work because they visually demonstrate relationships

8 0

1 year ago

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manu

ivolga24 [154]

Answer:

c.$188,150

Explanation:

April May June

Manufacturing costs* $157,700 $198,300 $201,000

Payment April Costs $118.275 $39,425

Payment May Costs  148,725 49,575

Cash Payments $ 188,150

None other costs will be paid in the month Of May.

*Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $870 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is paid once a year in November.

5 0

2 years ago

On January 1, an investment account is worth 50,000. On May 1, the value has increased to 52,000 and 8,000 of new principal is d

Evgesh-ka [11]

The question is incomplete. The complete question is :

On January 1, an investment account is worth 50,000. On May 1, the value has increased to 52,000 and 8,000 of new principal is deposited. At time t, in years, (4/12 < t < 1) the value of the fund has increased to 62,000 and 10,000 is withdrawn. On January 1 of the next year, the investment account is worth 55,000. The approximate dollar-weighted rate of return (using the simple interest approximation) is equal to the time-weighted rate of return for the year. Calculate t.

Solution :

It is given that :

Worth of investment account on 1st Jan = 50,000

Worth of investment account on 1st Jan next year = 55,000

New principal deposited = 8000

Therefore the interest earned = 55,000 - 50,000 - 8,000 + 10,000

= 7,000

Therefore,

$\frac{7000}{\frac{50000+16000}{3-10000(1-t)}}= \frac{52}{50} \frac{62}{60} \frac{55}{52} - 1$

= 0.13667

7000 = 0.13667(55,333.33 - 10000 + 10000t)

$t=\frac{7000-0.13667(45333.33)}{1366.7}$

= 0.5885

Thus, time - weighted rate of the return = 0.5885

4 0

2 years ago

Borasco Corp. owns land with a fair market value of $200,000. Borasco purchased the land 10 years ago for $65,000 and owes a lia

Free_Kalibri [48]

Answer:

$65,000

Explanation:

Corporate liquidations of property generally are treated as a sale or exchange. Gain or loss generally is recognized by the corporation on a liquidating sale of its assets. Gain or loss generally is recognized also on a liquidating distribution of assets as if the corporation sold the assets to the distributee at fair market value.

In certain cases in which the distributee is a corporation in control of the distributing corporation, the distribution may not be taxable. For more information, see IRC Section 332 and the related regulations.

As a result, Alvo has a basis in the received property of $65,000 because the land was not sold and Alvo did not receive $200,000. Alvo no longer owns stock in Borasco, but has the land.

3 0

2 years ago

Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017. Garcia Compa

algol13

Answer:

Dr Cash $332,775

Cr Bonds payable $290,000

Cr Premium on bonds payable $42,775

Explanation:

Preparation of the journal entry to record the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2017

Based on the information given the journal entry to record the issuance of these bonds will be:

Dr Cash ($290000/100*114.75) $332,775

Cr Bonds payable $290,000

Cr Premium on bonds payable ($332,775-$290,000) $42,775

(To record issuance of bonds)

3 0

2 years ago