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Alchen [17]
3 years ago
9

oreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the invest

ments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 482,000 $ 404,000 $ (78,000 ) ANC Corporation 451,000 482,000 31,000 Totals $ 933,000 $ 886,000 $ (47,000 ) Long term: Drake Corporation $ 482,000 $ 561,000 $ 79,000 Aaron Industries 719,000 661,000 (58,000 ) Totals $ 1,201,000 $ 1,222,000 $ 21,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry
Business
1 answer:
denpristay [2]3 years ago
4 0

Answer:

1. Record the adjusted for Dec 31 2021

Dr Unrealized holding loss—OCI 26,000

Cr Fair value adjustment 26,000

2.

No amounts would be reported in the income statement at December 31, 2021 .

Amount $ 0

Explanation:

1.

Fair-value adjustment of $0 to ($26,000):

Fair Value Adjustment

Balance on 1/1/2021 $0

± Adjustment needed to update fair value?

Balance needed on 12/31/2021 ($21,000 − $47,000) = ($26,000)

Fair-Value Adjustment

1/1/2021 $0

Change needed $26,000

12/31/2021 $26,000

2.No amounts would be reported in the income statement at December 31, 2021 because the accumulated net holding gains and losses are reported as a component of shareholders' equity while changes in the balance are reported as other comprehensive income in the statement of comprehensive income rather than as part of earnings.

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Some spending and taxes increase or decrease with the business cycle. This event often has an effect on the economy that is simi
spayn [35]

Answer: Automatic stabilizers

Explanation:

 The automatic stabilizers are one of the type of fiscal policy that which are design for the economical fluctuation. It is mainly authorized by the government and also by the policy makers.

The automatic stabilizer is also known as the economical policy and the activity is done without any government intervention. In this system, the income and taxes are get decreased or increased in the business cycle.

Therefore, Automatic stabilizers is the correct answer.

6 0
3 years ago
The entity that collects economic data at a regional level is the:___________
Scorpion4ik [409]

Answer:

<u>the World Bank</u>

<u>Explanation:</u>

The <u>World Bank</u> is an international financial institution that monitors the financial activities of most countries. Regional economic data collection is done by means of a World Bank initiative called the International Comparison Program.

An example of this economic data collected is the gross domestic product (GDP) of the regions.  

6 0
2 years ago
Ortega Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as foll
Nadya [2.5K]

Answer:

A. $30,000 decrease

Explanation:

Ortega Industries

Direct materials $ 150,000

Direct labor 240,000

Variable manufacturing overhead 90,000

Fixed manufacturing overhead 120,000

Total Manufacturing Costs for 15000 units is  $ 600,000

Total Manufacturing Costs per unit=  Total Costs/ Total units= $600,000 / 15000= $ 40

An outside supplier has offered to sell the component to Ortega for $34.

Profit per unit = $ 6

Profit for 15000 units = $6*15000= $ 90,000

The fixed manufacturing overhead reflects the cost of Ortega's manufacturing facility= $ 120,000 Which cannot be used for any other facility.

Unavoidable Fixed Costs= $ 120,000

Less Profits=                           $ 90,000

Decrease in operating Profits $ 30,000

If Ortega Industries purchases the component from the outside supplier, the effect on operating profits would be a  $30,000 decrease because after the profit of $ 90,000 cancel the effect of fixed costs of $ 90,000  the fixed costs of $ 30,000 will still be unavoidable and cannot be used for any other facility.

4 0
3 years ago
Turnover Pulse hypothesis states that ____ eaters faced high rates of extinction during the ice ages
Alisiya [41]

The turnover Pulse hypothesis states that generalist eaters confronted excessive charges of extinction during the ice a long time.

The pulsed climate variability framework indicates there are durations of extreme weather variability every 400 or 800 kyr pushed via the eccentricity maxima while lakes rapidly develop and fill tons of the Rift Valley and then unexpectedly disappear.

Phylogenetic turnover quantifies the evolutionary distance among species assemblages and is principal to expertise the main drivers shaping biodiversity. its miles affected each by means of the geographic and environmental distance between websites.

The theory is that the savannah became increasing because of increasingly more arid situations, which then drove the hominin version.

Learn more about Pulse hypothesis here: brainly.com/question/23086833

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5 0
2 years ago
You are an economist studying the small country of Mardodus. As you look at the data, you see Mardodus has experienced an influx
WINSTONCH [101]

Answer: Natural rate of unemployment will decrease because the productivity growth in the short term has passed up wage growth.

Explanation:

The natural unemployment rate simply means the lowest unemployment rate where the inflation in the economy is stable.

Based on the information given in the question, if the natural unemployment rate for this time frame.is analyzed, the natural rate of unemployment will reduce due to the fact that the productivity growth in the short term has passed up wage growth.

3 0
2 years ago
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