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Natasha2012 [34]
3 years ago
8

On January 1, Butte Company's valuation allowance for trading investments account has a debit balance of $23,200. On December 31

, the cost of the trading securities portfolio was $80,000. The fair value was $98,000. Which of the following would Butte report on the income statement for the current year?
Business
1 answer:
bulgar [2K]3 years ago
7 0

Answer:

The gain of $18000 would be reported in income statement

Explanation:

At each reporting date, the investment needs to be recorded at fair value to reflect current market prices and realities.

As a result,the fair value increase in investment of $18000 (fair value less costs) would be shown in income statement as unrealized gain on investment since the investment has not been disposed of.

Under IFRS for instance the gain would be shown under other comprehensive in order to emphasis its unrealized nature.

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Vanyuwa [196]

Answer:

Received investment of cash by organizers and distributed to them 1,000 shares of $1 par value common stock with a market price of $40 per share

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Cash                            $40,000

Common stock @ 1                      $1,000

Add-In capital Common Stock   $39,000

Purchased $15,000 of equipment, paying $3,000 in cash and owing the rest on accounts payable to the manufacturer

                                      Dr.            Cr.

Equipment                 $15,000

Cash                                           $3,000

Account Payable                       $12,000

Borrowed $10,000 cash from a bank

                                      Dr.            Cr.

Cash                            $10,000

Bank Loan                                 $10,000

Loaned $800 to an employee who signed a note.

                                      Dr.            Cr.

Note Receivable      $800

Cash                                             $800

Purchased $13,000 of land paid $4,000 in cash and signed a mortgage note for the balance

                                      Dr.            Cr.

Land                            $13,000

Cash                                            $4,000

Mortgage Note Payable            $9,000

6 0
3 years ago
7. As you track your progress, you'll act, observe, adjust, and then
IRISSAK [1]

Answer:

A. Act Again

Explanation:

In business, tracking a progress is made to ensure that you make a constant improvement within your operation.

During the observation process, you'll notify the things that can either become a hindrance or improvement to your operation. During the adjustment process, you'll eliminate the hindrance and add the things that can become the improvement into the plan.

After both of these were done, you need to act to execute the plan and check the progress again. This will form a cycle that you need to do throughout the operation.

8 0
3 years ago
Apple is considering increasing the amount of money it spends on product development.
xenn [34]

<em><u>gente</u></em><em><u> </u></em><em><u>não</u></em><em><u> </u></em><em><u>tem</u></em><em><u> </u></em><em><u>que</u></em><em><u> </u></em><em><u>fazer</u></em><em><u> </u></em><em><u>a</u></em><em><u> </u></em><em><u>prova</u></em><em><u> </u></em><em><u>de</u></em><em><u> </u></em><em><u>amanhã</u></em><em><u> </u></em><em><u>de</u></em><em><u> </u></em><em><u>manha</u></em><em><u> </u></em><em><u>cedo</u></em><em><u> </u></em><em><u>né</u></em><em><u> </u></em><em><u>e</u></em><em><u> </u></em><em><u>a</u></em><em><u> </u></em>

7 0
2 years ago
Renata's US-based lifestyle company decides to invest in a company based in France that specializes in health and wellness. This
Svetlanka [38]

People often make investments the health and wellness sector. This would be an example of foreign direct investment.

<h3>What is a foreign direct investment (FDI)?</h3>

This is known as a purchase of an interest that a firm is involved in. Here, the company by a company or an investor are found outside its borders.

The 3 types of FDI are;

  1. Horizontal FDI
  2. Vertical FDI
  3. Conglomerate FDI

It is simply a business decision to get or buy a good amount of stake in a foreign business as in the case with Reneta.

Learn more about foreign direct investment from

brainly.com/question/1125884

7 0
2 years ago
On January 1, 20X9, Pallet Company acquires 80 percent ownership in Slat Corporation for $200,000. The fair value of the noncont
polet [3.4K]

Answer:

<em>Consolidated Assets 850,000</em>

Explanation:

We need to calcualte the alue of the purchased portion of Slat.

total assets - non-controlled = proportional owned assets

250,000 - 50,000 = 200,000

The consolidated net assets would be:

Pallet Company 650,000

Slat Company    250,000

non-controlling    (50,000)

<em>Consolidated Assets 850,000</em>

7 0
3 years ago
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