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Roman55 [17]
4 years ago
10

A company failed to record unrealized gains of $26 million on its debt investments classified as trading securities. Its tax rat

e is 35%. As a result of this error, total shareholders' equity would be (Round million answer to 2 decimal places.):
Business
1 answer:
Naya [18.7K]4 years ago
3 0

Answer: Total shareholders' equity = $16.90 million

Explanation:

Unrealized gains or losses of  trading securities investment will be recorded in retained earnings.

Unrealized gains (net of taxes) will increase the balance of retained earnings, which is a part of shareholders' equity. If unrealized gains are not recorded then the retained earnings is understated.

\thereforeUnrealized gains (net of taxes) = Unrealized gains - Taxes

= $26 million - 35% of $26 million

= $26 million - $9.10 million

= $16.90 million

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Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a d
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If Mary and Tim specialize in the good in which they have a comparative​ advantage, ______.

Mary would specialize in making cakes while Tim would specialize in making pies.

Explanation:

a) Data and Calculations:

Mary's opportunity cost of making a cake = 2 pies

She can make additional 5 (10/2) cakes instead of making pies

This will increase her cakes to 25 a day (20 + 5)

Tim's opportunity cost of making a cake = 4 pies

She can make additional 40 pies (10 * 4) instead of making cakes

This will increase her pies to 60 pies a day (20 + 40)

When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.

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3 years ago
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Susan Daniels works for an event management company and is discontent with her job because she was passed over for a promotion.
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Answer:

The correct answer is Voice.

Explanation:

Taking into account the framework of exit, voice, loyalty and negligence, voice means directly raising comments on a particular situation that influences within the work team, so that superiors are aware of situations and can ask themselves solutions for the benefit of all.

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Dividends are part of the return you receive on your investment when you buy stock.
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Teresa purchased a necklace for $100 in 1964. In 2014, Teresa gave the necklace to her granddaughter, Lindsey.
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Answer:

d)$1,100 long-term capital gain

Explanation:

Given the information from the question. We know that a long-term capital gain or loss comes from investment that was possessed for a year or longer. However in this case, since the necklace was a gift .Therefore, there were no capital gain in 2014. In 2016, Lindsey sold the necklace for $1200. Therefore, the capital gain on the necklace will calculated as $1200- $100 = $1100. Where the $100 is a cost purchase for the previous owner. Therefore, long-term capital gain is $1100 which is option D.

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