Answer:
Capital Structure.
Explanation:
Toyota deciding to issue $175 million in long-term debt is an example of Capital Structure of corporate financial decisions.
<em>Capital Structure is the distribution of the debt and equity that makes the finance of the company.</em>
<u>Capital Structure can be obtained by two ways and both ways of obtaining funds are further divided-</u>
1. Shareholder's Funds
a. Equity Capital
b. Preference Capital
c. Retained Earning
2. Borrowed Funds
a. Debenture
b. Term loans
c. Public Deposit
Answer:
There will be no recorded change because the equity method comes into play from the acquisition date
Explanation:
In the event that Hawkins Company purchases or acquires another 30 percent of Larker, Inc. to add to their initial 10 percent holding, there will be no change in the investor report. This is because using the equity method, any investor report only starts taking into effect from the day the acquisition was made. Older statements and reports are not tampered with, as the investor did not have up to 40% of the company at that point in time.
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Answer:
A. Unrealized Holding Loss - Trading 3,400
Fair Value Adjustment - Trading 3,400
Explanation:
Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:
Dr Unrealized loss on trading security 3,400
Cr Debt investments 3,400
This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.
