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QveST [7]
3 years ago
12

Multico is a securities dealer whose principal market is with other securities dealers. To take advantage of a perceived opportu

nity, on December 31, the end of its fiscal year, Multico acquired a financial asset in a market other than its principal market for $50,000. At that date, the identical instrument could be sold in Multico's principal market for $50,100 with a $200 transaction cost. Which of the following amounts would constitute fair value to Multico for the financial asset at December 31?
Business
1 answer:
Delvig [45]3 years ago
3 0

Answer:

$50,100

Explanation:

Given that

Acquired value of a financial asset other than principal market = $50,000

Sale value of the identical instrument in principal market = $50,100

Transaction cost = $200

For reporting the fair value, we have to exclude the transaction cost i.e $200 and consider that cost which is to be received while exchanging i.e $50,100

This sale value would be equal to the fair value i.e $50,100 should be reported as a fair value

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Problem Page Watson Company's employees earn $290 per day and are paid on Friday for a five-day work week. This year, December 3
vredina [299]

Answer:

<u>inocme statment:</u>

wages expense: understate

<u>net income</u> overstate

<u>blanace sheet</u>

wages payable: understate

Retained Earnings: overstate

Explanation:

If the adjusting entry is not made, then the expenses will be lower than it should.

Thereofre the net income will be overstate as there are more expenses but weren't recorded.

the balance sheet will not represent accurate the liabilities as there is wages payable which are not recorded.

also, in the blaance sheet the Retained Earnings account will be overstate as it include the net income which is overstate.

5 0
3 years ago
Kilroy Corporation provides services to a customer for $1,000. The customer complained that there was a slight defect in the ser
nordsb [41]

Answer:

debit to Sales allowance of $50

Explanation:

When some defect in a product is revealed or notified by the buyer, the seller usually grants the customer an allowance which is termed as sales allowance.

It is usually allowed when the customer agrees to keep the product instead of returning the defective product which would constitute sales returns.

Following journal entry is recorded for recording sales allowance

Sales Allowance A/C                                     Dr. $ 50

    To Accounts Receivable                                          $50

(Being allowance for defects recorded)

Sales allowance is deducted from gross sales before the customer makes payment.

8 0
3 years ago
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next seven years, because
umka2103 [35]

Answer:

The price of the stock today will be $66.19

Explanation:

To calculate the price of a stock whose dividends will grow at a constant rate forever is calculated using the constant growth model of dividend discount model approach. To calculate the price of the stock today using this model, we use the following formula,

P0 = D1 / r - g

We will first calculate the price of the stock at t=8 using D9 because we use the next period's dividend to calculate the price of a stock. We will then discount back the price at t=8 to today's price.

P8 = 14.25 * (1+0.06)  /  (0.14 - 0.06)

P8 = $188.8125

The price of the stock today will be,

P0 = 188.8125 / (1+0.14)^8

P0 = $66.189 rounded off to $66.19

3 0
3 years ago
The closing is conducted by the sellers agent
torisob [31]

Answer:

False

Explanation:

As we know that the closing would be conducted by the closing agent not with the seller agent. The closing agent could be the worker or the employer etc

Therefore the given statement is false

Hence, it is not a true statement

So the same is to be relevant

6 0
3 years ago
Factors influencing the rate of elimination of alcohol include _________.
pychu [463]
The correct answer is C
3 0
3 years ago
Read 2 more answers
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