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
Stells [14]
3 years ago
7

Craftsman Corporation began operations on January 1, 2020 when $200,000 was invested by shareholders of the company. On March 1,

2020, Craftsman purchased for cash $120,000 of debt securities that it classified as available-for-sale. During the year, the company received cash interest of $8,200 on these securities. In addition, the company has an unrealized holding loss on these securities of $12,800 net of tax. Determine the following amounts for 2020: (a) net income, (b) comprehensive income, (c) other comprehensive income, and (d) accumulated other comprehensive income (end of 2020). (Enter negative amounts using either a negative sign preceding the number e.g. -15 or parentheses e.g. (15).)
Business
1 answer:
ICE Princess25 [194]3 years ago
5 0

Answer:

a.  $8,200

b. -$4,600

c. -$12,800

d. -$12,800

Explanation:

a. The computation of the net income is shown below:

Cash interest = net income

So, the net income is $8,200

b.  The computation of the comprehensive income is shown below:

= Net income - unrealized holding loss on these securities

= $8,200 - $12,800

= -$4,600

c.  The computation of the other comprehensive income is shown below:

unrealized holding loss = other comprehensive income

So, other comprehensive income is -$12,800

d.  The computation of the accumulated other comprehensive income is shown below:

Since there is no beginning balance so the ending would be considered as an unrealized holding loss i.e -$12,800

You might be interested in
Norwalk Corporation issued 10,000 shares of $50 par preferred stock at $74 a share. A stock warrant attached to each preferred s
Studentka2010 [4]

Answer:

$70,000

Explanation:

In this question, we are asked to calculate the amount credited to common stock warrants at issuance of the preferred stock.

A mathematical approach is needed to compute this.

Mathematically the amount credited to common stock warrants at issuance is calculated by multiplying the selling price of a warrant by the number of warrants.

The selling price of a warrant according to the question is $7. The number of shares issued is 10,000.

The amount credited to common stock warrants at issuance = $7 * 10,000 = $70,000

7 0
3 years ago
Which of the following would be a disadvantage of releasing cash flow to buy out an investor?
DedPeter [7]

Explanation:

what are the options? (:

5 0
3 years ago
angston Labs has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary w
masya89 [10]

Answer:

The correct answer is project A, B and D.

Explanation:

According to the given scenario, the given data are as follows:

Low risk WACC project = 8%

Average risk WACC project = 10%

High risk WACC project = 12%

As the company always prefer the projects that exceeds the WACC projects.

So,

  • Project A has 15% which exceeds the high risk WACC project.
  • Project B has 12% which exceeds the average risk WACC project
  • Project C has 11% which does not exceeds the high risk WACC project, hence it is not the correct answer.
  • Project D has 9% which exceeds the low risk WACC project.
4 0
3 years ago
Which of these are ways to protect yourself against identity theft
Free_Kalibri [48]

Answer:

All of the above except: Don't tell people your dog's name

Explanation:

Hope this helps!

6 0
2 years ago
A man is planning to retire in 25 years. He wishes to deposit a regular amount every three months until he​ retires, so​ that, b
WARRIOR [948]

Answer:

He would probably need to deposit 35k

Explanation:

He would need to deposit 35k cause the other 45k would be used to buy stuff like food clothes etc. And thats the recommended amount to deposit

4 0
3 years ago
Other questions:
  • Monica wants to pursue a degree in psychology and has enrolled in the bachelor of arts program at ashford. her ultimate goal is
    12·1 answer
  • Which of the following can explain the upward slope of the short-run aggregate supply curve? a. nominal wages are slow to adjust
    13·1 answer
  • If cost of goods sold under FIFO was $8,000 and was $10,000 under LIFO, assuming a tax rate of 40%, how much tax savings resulte
    14·1 answer
  • Public domain which group of consumers would find this ad offensive? middle class homemakers small business owners assembly line
    11·1 answer
  • Alamos Co. exchanged equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment we
    8·1 answer
  • Which Of the following is the most important academic skill that you would need in a scientific career?
    13·2 answers
  • Laura has an equity portfolio valued at $11.2 million that has a beta of 1.32. She has decided to hedge this portfolio using SPX
    8·1 answer
  • Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per
    8·1 answer
  • The income statement of Pharoah Company is shown below.
    8·1 answer
  • The Fashion Shoe Company operates a chain of women's shoe shops around the country. The shops carry many styles of shoes that ar
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!