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
maks197457 [2]
4 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]4 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.

You might be interested in
When initiating communication in a business environment, the first step is to:
irina1246 [14]
Define the markets, people, and environments you are addressing 
6 0
3 years ago
You are doing a sales presentation for Ms. Duarte and her son. Ms. Duarte has some cognitive impairment and her son informs you
Jet001 [13]

Answer:

Yes he can execute the enrollment for her

Explanation:

The power of attorney is a legal document that given the authority to act in place on another person. It can be represented on behalf of other people so that the act could be done.

Here the individual can act legal with respect to the financial issue, property matters, etc

Therefore according to the given situation yes he can be executed

4 0
3 years ago
A portfolio is invested 22 percent in Stock G, 50 percent in Stock J, and 28 percent in Stock K. The expected returns on these s
Fittoniya [83]

Answer:

The expected return of the portfolio is 12.8%

Explanation:

A portfolio is invested 22% on stock G, 50% on stock J and 28% on stock K.

The expected return on stock G is 7%, on stock J is 13% and on stock K is 17%.

Weighted return on stock G

= 0.22*7%

=1.54%

Weighted return on stock J

=0.50*13%

=6.5%

Weighted return on stock K

=0.28*17%

=4.76%

The expected return on the portfolio

=Weighted return on stock G+Weighted return on stock J+Weighted return on stock K

=(1.54+6.5+4.76)%

=12.8%

8 0
3 years ago
V. Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect:
Murrr4er [49]

Answer:

3. Supply of flour to increase.

Explanation:

The situation above is showing a<em> direct proportional relationship</em> between the "wheat," as a main ingredient of flour, and the flour itself.

If the price of wheat <em>decreases</em>, <u>suppliers will be interested in buying more of it in order to produce more quantities of flour at a </u><em><u>lower cost </u></em>because it will more likely lead to a<em><u> higher profit</u></em>. This will, therefore, increase the supply of flour in the market.

6 0
3 years ago
Generally speaking, a narrow span of management implies that the height of the organization will be ____; a wide span of managem
Pani-rosa [81]
<span>a narrow span of management implies that the height of the organization will be long; a wide span of management implies that the height of the organization will be short.

This is because in a narrow span of management, less people work under each manager and therefore, there will be more levels of hierarchy making the height of the organization longer and the vice versa applies.
</span>
6 0
3 years ago
Other questions:
  • For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP
    15·1 answer
  • The given treasury bill was sold in april of this year. find (i) the price of the t-bill, and (ii) the actual interest rate paid
    13·1 answer
  • The first federal retirement benefits were give to veterans of
    12·2 answers
  • The form of a business organization that is not affected by the withdrawal or death of an owner and can continue forever is
    6·1 answer
  • In a payday loan, what happens at the date of loan maturity?
    6·2 answers
  • The costs of international logistics are higher than the costs of domestic logistics. They are estimated as ____________________
    13·1 answer
  • 4. Consider the game of chicken. Two players drive their cars down the center of the road directly at each other. Each player ch
    10·1 answer
  • What uses a systematic approach in an attempt to improve business effectiveness and efficiency continuously? static process dyna
    7·1 answer
  • Theo quan điểm hiện đại khi tiếp cận chi phí chất lượng, chi phí chất lượng thấp nhất là khi
    15·1 answer
  • Companies like my​ gym, which seek to do business in new markets for manufacturing​ and/or marketing​ purposes, have many potent
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!