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melamori03 [73]
2 years ago
5

Yankton Company began the year without an investment portfolio. During the year, it purchased investments classified as trading

securities at a cost of $13,000. At the end of the year, the market value of the securities was $11,000. Yankton Company's financial statements for the current year should show:_______.
a. a loss of $2,000 on the income statement and available-for-sale investments of $13,000 on the balance sheet.
b. no loss on the income statement, available-for-sale investments netting to of $11,000, and an unrealized loss of $2,000 as a stockholders' equity adjustment on the balance sheet.
c. no loss on the income statement and available-for-sale investments of $13,000 on the balance sheet.
Business
1 answer:
evablogger [386]2 years ago
6 0

Answer:

The answer is B.

Explanation:

Available-for-sale is an equity or debt instrument that is not held to maturity. They are held for the purposes of trading or selling before its maturity. Businesses look for active buyers. They are being reported at their fair value.

If the fair value of this security (available-for-sale instrument) increases, the carrying amount is debited and changes in fair value in shareholders' equity is credited. If the fair value of the investments decreases, the carrying amount is debited and changes in fair value in shareholders' equity is debited.

Therefore, the loss of $2,000 is an adjustment in stockholders' equity on the balance sheet.

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A mission statement defines the company vision and objectives.

A vision statement focuses more on the future goals and is usually longer than a mission statement because it covers things company purpose, goals, how it will be achieved, etc.

3 0
3 years ago
Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 560,000 units are e
andrew11 [14]

Answer:

d. $11.11 per unit

Explanation:

Plant wide overhead rate = Total manufacturing cotsts / Total direct labor hours

Plant wide overhead rate = ($2,530,000 + $900,000) / (168,000+110,000)

Plant wide overhead rate = $3,430,000 / 278,000

Plant wide overhead rate = $12.34 per DLH

Overhead cost per unit = Plant wide overhead rate * Direct hours per unit

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Overhead cost per unit = $11.11 per unit

7 0
3 years ago
According to Lucas and​ Sargent, workers and firms have rational​ expectations, and therefore if the Fed pursues an expansionary
NeX [460]

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D. agents will immediately adjust their expectations of inflation up.

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Expansionary monetary​ policies are geared towards stimulating economic growth. The Fed can impose lower interest rates or purchase bonds and securities in open market operations as expansionary tools. Lowering interest rates encourages banks and other lending institutions to lend money to firms and households.  

Purchasing bonds and securities adds money to the banking system. The increased money will be loaned out to businesses and individuals. The availability of low-cost credit motivates firms to borrow and expands their business capacities. When households borrow with ease, it leads to an increase in consumption expenditure.  These actions result in too much money in circulation, which is inflation.

4 0
3 years ago
Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,400 on January 15, 2017. On December 31, 2019, she sold all 1,000
Setler [38]
Her loss is her loss
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3 years ago
__________ is an example of a capability that is based in the functional area of distribution. Group of answer choices Effective
ICE Princess25 [194]

<u>Effective use of logistics management techniques</u> is an example of a capability that is based in the functional area of distribution.

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3 years ago
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