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IgorLugansk [536]
3 years ago
9

Smith buys and sells equity securities. On December 15, 2021, Smith purchased $542,000 of Jones shares and elected the fair valu

e option to account for the Jones investment. As of December 31, 2021, the Jones shares had a fair value of $588,000. In the 2021 financial statements, Smith will report (ignore taxes):______.
A. Investment income of $25,000 in its income statement.
B. Other comprehensive income of $25,000.
C. Accumulated other comprehensive income of $525,000.
D. An investment in Jones of $500,000.
Business
1 answer:
Kamila [148]3 years ago
3 0

Answer:

$46,000

Explanation:

We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .

DATA

Fair value = 588,000

Cost = 542,000

Revaluation gain = Current fair value - Cost

Revaluation gain = 588,000 - 542,000

Revaluation gain = $46,000

The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.

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Acme Global hired a director of safety to help the organization ensure proper compliance with the Occupational Safety and Health
Yakvenalex [24]

Answer:

The action of ACME global represent the influence of  Government  in the external environment of an organisation

Explanation:

The external environment of an organisation represents the factors outside the environment that is capable  of influencing  the decision of the organisation.  It consists of the outside factors that influences the organisation.  e.g social cultural, political, economic, technological  factors among others.

One of these factors is the Political/ Legal factor:

The political / legal factor focuses on the influence of government on business organisations. It reviews how government laws, policies, and rules affects the operation of business. The rules and regulations or policies put in place by the government has the capacity to influence the business decision.

In the case of ACME global hiring a director of safety, they are doing so in other to comply to the occupational safety and Health Act that is most definitely enacted by the government.

Therefore we can say that  the action of ACME global represent the influence of  Government  in the external environment of an organisation

5 0
3 years ago
A company sold PP&E for $200 cash. Prior to the sale, the net book value of the PP&E on the financial statements was $24
madam [21]

Answer:

The operating cash flow in this transaction is zero

Explanation:

Please see attachment.

6 0
4 years ago
Toys, Trinkets and More requires a minimum rate of return of 12% on its average operating assets. The toy department currently h
Serggg [28]

Answer:

Residual Income = $6,000

Explanation:

Residual income is the excess income of a firm leftover the opportunity cost of capital or over the desired income.

Given,

The minimum rate of return 12%

Average operating assets = $300,000

Net operating income = $42,000

We know,

Residual Income = Net Operating Income - (Average operating assets x the minimum rate of return)

Residual Income = $42,000 - ($300,000 x 12%)

Residual Income = $42,000 - $36,000

Residual Income = $6,000

6 0
4 years ago
If a finance lease contains a bargain purchase option, the lessee should amortize the leased asset: Multiple Choice Over the ter
Finger [1]

Answer:

Over the economic life of the asset.

Explanation:

An asset obtained under a financial lease must be depreciated in the same way as the company would depreciate any other similar fixed asset. E.g. a leased truck should be depreciated similarly to other trucks owned by the company.

In a financial lease, the lessor amortizes the asset's value, while the lessee depreciates the assets as common fixed assets (a lessee doesn't amortize).

3 0
3 years ago
Which one of the following should NOT be included in the project analysis of the manufacturing of a new product? A) Change in ne
trasher [3.6K]

Answer:

Option(c) is the correct answer to the given question

Explanation:

The project analysis means finding the cost of project ,project is working properly as the customer need and other factor are used to check the manufacturing of new product.

Following are features of project analysis in the new product

  • Improve in net working capital of associated with the release of a new program.
  • The capital expenditures of a new project which work in the favour of a company's business working capital.
  • The variations in the working capital of a company with or without a specific project.

All the other option are related to project analysis of the manufacturing of a new product that's why they are incorrect according to the question .

3 0
3 years ago
Read 2 more answers
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