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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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Jaguar has full manufacturing costs of their Sminustype sedan of pound​22,803. They sell the Sminustype in the UK with a​ 20% ma
Anika [276]

Answer:

Explanation:

Old Price         27363

Exchange Rate 2.01

USD Value         55000

the company has committed to sale at $55000 existing price for next six months.

No currency hedge contract has been made by jaguar, in such case due to appreciation of pound the value of dollar will decrease but due to commitment by jaguar not to fluctuate the cost the total amount receivable in pounds will decrease as compared to 6 months before

USD Value         55000

Exchange Rate  2.15

Price in Pounds      25581

Decrease in pounds = 27363-25581 = 1782 loss

3 0
3 years ago
Read 2 more answers
On January 1, 2012, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equ
malfutka [58]

Answer:

The correct option is D) $127,000.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

On January 1, 2012, Cale Corp. paid $1,020,000 to acquire Kaltop Co. Kaltop maintained separate incorporation. Cale used the equity method to account for the investment. The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January 1, 2012:

                                          Book  Value        Fair Value

Current assets                      $120,000          $120,000

Land                                           72,000           192,000

Building (20yr life)                  240,000           268,000

Equipment (10yr life)               540,000            516,000

Current Liabilities                      24,000             24,000

Long-term Liabilities                120,000           120,000

Common Stock                       228,000

Additional Paid-in Capital       384,000

Retained Earnings                   216,000

Kaltop earned net income for 2012 of $126,000 and paid dividends of $48,000 during the year.

In Cale's accounting records, what amount would appear on December 31, 2012 for equity in subsidiary earnings?

A) $ 77,000.

B) $ 79,000.

C) $125,000.

D) $127,000.

E) $ 81,800.

The explanation of the answer is now provided as follows:

Total amortization of allocations for 2012 = ((Building fair value – Building book value) / 20 year) + ((Equipment fair value - Equipment book value) / 10 years) = (($268,000 - $240,000) / 20) + (($516,000 - $540,000) / 10) = -$1,000

Amount for equity in subsidiary earnings on December 31, 2012 = Kaltop earned net income for 2012 - Total amortization of allocations for 2012 = $126,000 - (-$1,000) = $126,000 + $1,000 = $127,000

The amount that would appear on December 31, 2012 for equity in subsidiary earnings is $127,000. Therefore, the correct option is D) $127,000.

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Answer:

When we get too hot, sweat glands in the skin release more sweat. The sweat evaporates, transferring heat energy from the skin to the environment. 

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