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levacccp [35]
3 years ago
15

Headland Co. has a held-to-maturity investment in the bonds of Schuyler Corp. with a carrying value of $79,200. Headland determi

ned that due to poor economic prospects for Schuyler, the bonds have decreased in value to $70,800. It is determined that this loss in value is uncollectible.
Prepare the journal entry, if any, to record the reduction in value.
Business
1 answer:
Allisa [31]3 years ago
7 0

Answer:

The Journal Entry is as follows:

Loss on Impairment $8,400

Debt Investment ($8,400)

Explanation:

Given.

Carrying Value = $79,200

Decreased Value = $70,800

Differences = $79,200 - $70,800

Differences = $8,400

Since the loss in value is determined, uncollectible.

The required entry on the journal entry are the amount loss on impairment and the amount invested on debt.

The Journal Entry is as follows:

Loss on Impairment $8,400

Debt Investment ($8,400)

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A<u> strategic alliance</u> represents a long-term partnership between two or more companies established to help each firm build competitive market advantages.

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Long-time period relationships have a tendency to remain everywhere from to a few years, with couples breaking apart round this time.

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6 0
1 year ago
A famous quarterback just signed a contract for $16 mil, providing $3.6 million a year for 4 years. A less famous receiver signe
Damm [24]

Answer:

The PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

Explanation:

Present value (PV) refers to the valuation date value of a stream of income expected to be received in the future.

The PV for each of the two contracts can calculated by using the interest rate of 9%% (i.e. 0.12) as the discounting factor (r) to calculate the PV for each year. The discounting formula to use is (1+r)^n where n represents each relevant year. The calculations are done as follows:

1. For a famous quarterback

Step 1. Calculation of the PV for year

Year 1 PV = $3,600,000 ÷ (1.09)^1 = $3,302,752.29  

Year 2 PV = $3,600,000 ÷ (1.09)^2 =  $3,030,047.98  

Year 3 PV = $3,600,000 ÷ (1.09)^3 = $2,779,860.53

Year 4 PV = $3,600,000 ÷ (1.09)^4 = $2,550,330.76  

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $11,662,991.56.

2. For a less famous receiver

Step 1. Calculation of the PV for year

Year 1 PV = $3,000,000 ÷ (1.09)^1 = $2,752,293.58  

Year 2 PV = $3,000,000 ÷ (1.09)^2 =  $2,525,039.98  

Year 3 PV = $3,000,000 ÷ (1.09)^3 = $2,316,550.44  

Year 4 PV = $3,000,000 ÷ (1.09)^4 = $2,125,275.63  

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $9,719,159.63.

In addition, the $3,000,000 is to receive now is added to the $9,719,159.63 as follows:

PV of less famous receiver = $9,719,159.63 + $3,000,000

                                             = $12,719,159.63

Conclusion

Therefore, the PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

5 0
3 years ago
Identify the careers that require a college degree
Genrish500 [490]
Except:
photographer..video equipment installer
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3 years ago
People holding money in anticipation that bond yields will rise is an example of
Anton [14]
Money demand for transactions
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3 years ago
Jeff is an entrepreneur who decided to start an online bakery. Since all his business will be done online and he can bake in his
nekit [7.7K]

Answer:

competition                  

Explanation:      

In simple words, competition refers to the tendency of two or more parties to perform better than one another for the sake of own personal benefits. In business, competition can be done from various perspectives like price or quality.

In the given case, Jeff has been producing at a lower cost but despite of earning high profits he is willing to sell for lower prices with the motive of competing in the market and gaining higher market share.

6 0
3 years ago
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