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
coldgirl [10]
3 years ago
8

Hawk Corporation purchased 1,000 Diamond Corporation bonds in 2015 for $500 per bond and classified the investment as securities

available for sale. The value of the Diamond investment was $600 per bond on December 31, 2016, and $650 on December 31, 2017. During 2018, Hawk sold all of its Diamond investment at $700 per bond.If Hawk records unrealized holding gains and losses up to the moment of sale, what would be the amount of reclassification adjustment that Hawk would record upon sale?A) A debit of $50,000.B) A debit of $150,000.C) A debit of $200,000.D) A credit of $150,000.
Business
1 answer:
jonny [76]3 years ago
3 0

Answer: C) A debit of $200,000.

Explanation:

In 2018, Hawk sold all the Diamond Investment bonds at $700.

The amount of reclassification adjustment would be;

= Sales price - original purchase price

= (1,000 * 700) - (1,000 * 500)

= $200,000

The amount should be debited to reverse the gains recorded over the other years.

You might be interested in
What is the net loss
RUDIKE [14]
Net loss is when expenses exceed the income or total revenue produced for a given period of time
6 0
3 years ago
Read 2 more answers
In developed countries, at what age do individuals typically become grandparents?
yKpoI14uk [10]

In developed countries, at 40 years of age individuals typically become grandparents.

<h3>What are developed countries?</h3>

A sovereign state that is considered to have a developed economy, a high standard of living, and advanced technological infrastructure is referred to as a developed country.

A developed country, often known as an industrialized country, has a sophisticated economy that is typically gauged by average income per person and/or gross domestic product (GDP). Developed nations have diverse industrial and service sectors as well as cutting-edge technology infrastructure.

The term "developed countries" often refers to wealthy nations, excluding Middle Eastern nations and certain other minor nations. Limitations:

(i) It only addresses the economic element while ignoring issues like peace, health, the environment, lifespan, education, etc.

(ii) The method does not show us how the income is distributed.

To learn more about developed countries refer to:

brainly.com/question/327805

#SPJ4

8 0
2 years ago
Elements of a sucessful entreptrneu
zlopas [31]

  • Knowledge Hungry. There are people whose personality predisposes them to running their own business. However, entrepreneurship like most skills is largely learned and perfected over time.
  • Persistence. The reason many people who’d love to be their own boss end up sticking to their 9-to-5 is because business is tough.
  • Self-Reliant. Great entrepreneurs are good managers. They know how to marshal the troops, rally them toward a cause and ensure everyone in the team is pulling their weight.
  • Change-Ready. The business environment is never static. It’s in a constant state of flux with ever changing technologies, regulations, competitors and customer expectations.
  • Self-Care. When you are an employee, you are part of a team working toward a defined goal. Ergo, you share with others the burden of achieving this goal.

5 0
3 years ago
Read 2 more answers
What is productivity? quantity of input per unit of output quantity of output per unit of input quality of output per unit of in
slava [35]
Productivity is a Quantitative term which can easily be defined as "<span>measured in terms of the rate of output per unit of input"
</span><span>
In short, Your Answer would be Option B

Hope this helps!</span>
7 0
4 years ago
Read 2 more answers
Marwick Corporation issues 15%, 5 year bonds with a par value of $1,070,000 and semiannual interest payments. On the issue date,
Over [174]

Answer:

The bond's issue (selling) price = $1,146,890.2

Explanation:

The selling price of the bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are paid semi anually and the par value of the bond that will be paid at the end of the 10 years.

During the 5 years, there are 10 equal periodic coupon payments that will be made. In each  year, the total coupon paid will be $1,070,000*0.15=$160,500 and this payment will be split into two equal payments equal to  \frac{160,500}{2}=$80,250. this stream of cashflows is an ordinary annuity

The periodic annual market rate is equal to \frac{0.13}{2}=0.065

The  PV of the cashflows = PV of the coupon payments + PV of the par value of the bond

=$80,250*PV Annuity Factor for 10 years at 6.5% + \$1,070,000*\frac{1}{(1+0.065)^10}

=$80,250*7.1888+$1,070,000*0.5327 = $1,146,890.2

7 0
3 years ago
Other questions:
  • Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product Buzz. Labor costs wil
    14·1 answer
  • Investment Advisors, Inc., is a brokerage firm that manages stock portfolios for a number of clients. A particular portfolio con
    12·2 answers
  • Unexpected inflation causes the demand for money to and the interest rate to
    7·1 answer
  • Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $
    11·1 answer
  • A company reports the following amounts at the end of the year:
    8·1 answer
  • Normally when you Print Preview a report it will generate a report with how many pages? a. Only the first two pages b. Only the
    9·2 answers
  • Thomas More Company incurred the following costs during the
    9·1 answer
  • A company's value chain Multiple choice question. is not analytically useful if it is a non-manufacturing company. includes only
    13·1 answer
  • Explain fayols 14 principle of management in any organization
    5·1 answer
  • Stock prices are:____.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!