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maks197457 [2]
3 years ago
10

A company buys ten shares of securities at $1,000 each on January 15, year 1. The securities are classified as available-for-sal

e. The fair value of the securities increases to $1,250 per share as of December 31, year 1. The company does not elect to use the fair value option for reporting available-for-sale securities. Assume no dividends are paid and that the company has a 30% tax rate. What is the amount of the holding gain arising during the period that is classified in other comprehensive income for the period ending December 31, year 1?
A) $0
B) $1,750
C) $2,500
D) $7,500
Business
1 answer:
Anit [1.1K]3 years ago
8 0

Answer:

A) $0

Explanation:

Company does not elect to use the fair value option for reporting available-for-sale securities, so they are not required to report any gain or loss because they are report the securities on their initial purchase value or book value. GAAP required eligible items that are elected to use the fair value option for reporting only to report gain / loss in other comprehensive income.

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Answer:

$7,000

Explanation:

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Net increase in Temporarily Restricted Net Assets = Increase in Temporarily Restricted Net Assets - Amount of the conference room furniture purchased = $17,000 - $10,000 = $7,000

Note that the conference room furniture purchased is deducted because the donor did not stipulate a time restriction on holding the furniture.

Therefore, total amount should be recorded as an increase to Temporarily Restricted Net Assets is $7,000.

 

4 0
2 years ago
Consider the following financial statements about DANIEL Co. for the current year 2015
neonofarm [45]

Answer:

a.  For the Year Ended December 31, 2015

Cash flows from operating activities:  

Cash received from customers                15586

Cash paid to suppliers                              -10260  

Cash paid for operating expenses           -3910

Cash paid for interest                                -220

Cash paid for income taxes                       -560

Net cash flow from operating activities      636

<u>Working: </u>

Sales                                                       16000

Less: Increase in accounts receivable -380

Less: Decrease in unearned revenue   -34

Cash received from customers             15586

Cost of goods sold                                 10000

Add: Decrease in accounts payable      360

Less: Decrease in inventory                    -100

Cash paid to suppliers                             10260

Operating expenses                                 4000

Less: Noncash expenses  

Depreciation expense                                -150

Impairment loss                                          -200

Cash operating expenses                          3650

Add: Increase in prepaid expenses           80

Add: Decrease in accrued liabilities           180

Cash paid for operating expenses             3910

Interest expense                               200

Add: Decrease in interest payable  20

Cash paid for interest                      220

Income tax expense                               600

Less: Increase in income tax payable   -40

Cash paid for income taxes                   560

(b)        Partial Cash Flow Statement (Indirect Method)

             For the Year Ended December 31, 2015

Cash flows from operating activities

Net income                                                  1200

Adjustments to reconcile net

income to operating cash flows:  

Depreciation expense                   150  

Impairment loss                              200  

Increase in accounts receivable -380  

Decrease in inventory                     100  

Increase in prepaid expenses       -80  

Decrease in accounts payable      -360  

Decrease in accrued liabilities       -180  

Decrease in interest payable         -20  

Decrease in unearned revenue      -34  

Increase in income tax payable      40              -564

Net cash flow from operating activities          636

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Answer: Attitude inoculation

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Answer: A

Explanation: Ap.ex

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