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IgorLugansk [536]
2 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]2 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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Which is the type of stock that is commonly traded in stock exchanges? Hint: this is the form of company ownership that does not
Rashid [163]

Answer:

Preferred shares

Explanation:

In simple words, Preferred shares (sometimes known as "preferred") are indeed a type of hybrid security that has both equities and guaranteed income features. A preferred share, like an equity instrument, indicates an ownership stake, has no expiration period and is recorded on the capital side of a corporation 's balance sheet.

5 0
2 years ago
Financial accounting primarily provides information to which group of decision makers?
Anastaziya [24]

Answer:

A) investors

Explanation:

The main aim of financial accounting to provide information to the investors( existing and would-be) about the performance and position of the business at a particular point in time.

Performance relates to net income earned while the position is about the net assets of the company which is an offshoot of all the assets owned and liabilities(obligations) owed to other parties

4 0
3 years ago
A new ad for the shampoo brand Better Not Younger focuses on how its products make aging hair feel softer, which is the ________
Anvisha [2.4K]

Answer: product benefit

Explanation:

When advertising a particular product, the product benefit simply means the benefits that the consumers will enjoy when they bunch such products.

In this case, Better Not Younger focuses on how its products make aging hair feel softer, therefore thus is the product benefit as this is what the consumers will enjoy when they purchase it.

7 0
3 years ago
Christie has just started with a travel agency. and she has been offering clientsand prospective clients a range of packaged tou
Marta_Voda [28]

<u>Full question:</u>

Christie has just started with a travel agency. and she has been offering clients and prospective clients a range of packaged tours. She is concerned. because the commissions she is earning on her sales are lower than she had hoped. Her colleague Peter. who has been with the agency for several years, is having a great deal of success by working closely with the clients. seeking their ideas. and building customized tour packages for each one based on their suggestions.Peter's approach is based on A. transaction-oriented marketing.B. premium C. Vlaue Cocreation D.sales-oriented marketing.

Peter's approach is based on value cocreation.

<h3><u>Explanation:</u></h3>

Value co creation is one of the strategies used in the business. It is a business strategy that helps in creation and promotion of the involvement of the customers actively in creation of on demand and made to order products. By using this strategy they will get the exact product they are in need and they can also involve in understanding how those products are formed.

In the example given, The colleague of Christie, Peter is being working closely with the clients and he offers the services by asking the customer's ideas and their suggestions. Thus the approach followed by Peter is value cocreation.

6 0
2 years ago
The landlord of an office building charges tenants $150 per hour for extra HVAC usage after hours. During the last three years,
lidiya [134]

Answer:

$78,375

Explanation:

Actual HVAC usage = 500 + (500 × 10%) = 500 + 50 = 550

Total HVAC income before credit loss = 550 × $150 = $82,500

Total HVAC income before credit loss =  $82,500 - ($82,500 × 5%) = $82,500 - $4,125 = $78,375

Therefore, the approximate heating, ventilation, and air conditioning (HVAC) revenue the landlord will realize is $78,375.

8 0
3 years ago
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