1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tia_tia [17]
3 years ago
7

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:
zimovet [89]3 years ago
4 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.

You might be interested in
Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2017 for $75,000. The land original
Ierofanga [76]

Answer:

$15,000

Explanation:

In leo company books, the gain recognized would be $75,000 - $60,000 = $15,000 as they are selling the land $15,000 more than it initially cost them

7 0
3 years ago
ou are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days.
Taya2010 [7]

The net present value of this lockbox arrangement is $1,205,378.06.

Since you are considering implementing a lockbox system for your firm, and on an average day, your firm receives 1,370 checks with an average value of $ 880 each, and the daily interest rate on Treasury bills is 0.01 percent, and the bank charge per check would be $ 0.25, to determine what is the net present value of this lockbox arrangement, the following calculation must be performed:

  • ((1370 x 880) x 1.0001) - (1370 x 0.25) = X
  • 1,205,720.56 - 342.5 = X
  • 1,205,378.06 = X

Therefore, the net present value of this lockbox arrangement is $1,205,378.06.

Learn more about maths in brainly.com/question/25903947

5 0
2 years ago
Colliers, Incorporated, has 100,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the
VladimirAG [237]

a. The amount that will go to the preferred stockholders is $400,000.

b. The amount of the declared dividend that will be available for common stock dividends is $200,000 ($600,000 - $400,000).

Data and Calculations:

Cumulative Preferred Stock Outstanding = 100,000 shares

Dividends per share = $2

Cumulative Preferred Dividend last year = $200,000 (100,000 x $2)

Preferred Dividend this year = $200,000 (100,000 x $2)

Total preferred dividend to be paid this year = $400,000

Thus, the Preferred Stockholders will be paid $400,000 ($200,000 for last year and $200,000 for this year).

Learn more: brainly.com/question/24297088

6 0
2 years ago
Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The cost in dollars of producin
Bad White [126]

Answer:

9 in Aynor and 31 in Spartanburg

Explanation:

we need to build the following:

    A              B           C

           units    COST

Aynor          9           =93 + 80*B2 + POWER(B2;2)*7

Spartanburg 31           =147 + 20*B2 + POWER(B2;2)*3

             =b2 + b3   = c2 + c3

We stablish that we want to minimize c3

changing cell b2 and b3

with the restriction that must be integer solution and b4 should equal 40

5 0
3 years ago
"Slumming" meant:
Andru [333]

Answer:

A.

Explanation:

The word 'slumming' can be defined as an act of going to socially low-level area and spending time there either with the purpose to do charity or just out of curiosity.

Harlem is a city located in the neighbourhood of New York City after blacks migrated to the place the city became a restricted area to go.

But in the early 1920s, the whites began slumming to Harlem. They left their sophisticated ways to get a share of black life. They packed themselves in speakeasies, dancehalls, jazz clubs, etc.

So, the correct answer is option A.

8 0
3 years ago
Other questions:
  • Which of the following is a benefit of doing business with an online bank? A. 24 hours/7 days a week business hours
    11·2 answers
  • The abrupt end of long distance cattle drives in 1885 was primarily due toa. the development of railroad cars that could haul ca
    5·1 answer
  • On January 1 of the current year, the Barton Corporation issued 8% bonds with a face value of $73,000. The bonds are sold for $7
    9·1 answer
  • Using the information below, calculate cost of goods sold for the period: Sales revenues for the period$1,312,000 Operating expe
    15·1 answer
  • Sea and Sand has a maximum 14 feet of front shelf space to devote to the four beverages combined. Tommy wants to use a minimum o
    13·1 answer
  • A​ company's production department was experiencing a high defect rate on the assembly​ line, which was slowing down production
    7·1 answer
  • Smith Office Equipment​ Company's budgeted manufacturing overhead is $ 4 comma 500 comma 000. Overhead is allocated on the basis
    6·1 answer
  • The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $
    5·1 answer
  • Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manu
    11·1 answer
  • ____________ is the study of how individuals, institutions, governments, and businesses acquire, spend, and manage money and oth
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!