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fenix001 [56]
3 years ago
12

On July 31, Beatrice Co. purchased 2,000 shares of SimmTech stock for $16,000. This investment is considered to be an available-

for-sale investment. On October 31, which is Beatrice's year-end, the stock had a market value of $20,000. Beatrice should record a:
Business
1 answer:
Natalka [10]3 years ago
4 0

Answer: a. Credit to Unrealized Gain-Equity for $4,000.

Explanation:

Because the investment is an AVAILABLE FOR SALE investment, gains and losses made on it are recorded under COMPREHENSIVE INCOME in the Equity section as Unrealized gains or losses.

Because this is profit, it is treated as Unrealized gains and is Credited in the Equity section under Comprehensive income.

You however only record the gains or losses and not the whole amount because the investment is recorded at Fair Value as an asset.

Therefore in this scenario, the gain is $20,000-$16000 which is $4000. That is what is recorded as an Unrealized gain.

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irina [24]

Answer:

Operating cash flows

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NPV is a capital budgeting method used to determine profitable investments

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3 years ago
Paulina believed that the new hires in her department were lazy for failing to make use of the company's expert software system,
Andrei [34K]

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<h3>What is fundamental attribution bias?</h3>

Fundamental attribution bias  can be defined as the way in which a person judge another person without considering the situation factors.

Based on the giveing scenario Paulina is using fundamental attribution bias on the new employ by ignoring the reason why the new hire did not use the company's expert software system.

Therefore this is an example of fundamental attribution bias.

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8 0
2 years ago
Which of the following taxes are paid by the employee and the employer? a.FUTA b.Federal withholding taxes c.SUTA d.FICA
vlabodo [156]

Answer:

The correct answer is letter "D": FICA.

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The FICA (<em>Federal Insurance Contributions Act</em>) is a U.S. law that requires a paycheck deduction to be paid to <em>Social Security</em> and <em>Medicare</em>. Employers and employees share half the payment unless an individual is self-employed meaning the full amount must be covered by that person.

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What is the main difference between ballon mortgage and arm
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The International Energy Agency provides insights into energy use and carbon emissions for the future in the form of exploring different scenarios, which are not actual projections.

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5 0
2 years ago
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