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Otrada [13]
3 years ago
13

g Consider the following two separate events for a company during the year: 1. Gain on sale of investments = $10. 2. Unrealized

gain on investment from increase in fair value = $20. The company reports the unrealized gain as a component of other comprehensive income. By how much would these two events increase net income and comprehensive income, ignoring tax effects?
Business
1 answer:
Nina [5.8K]3 years ago
7 0

Answer:

B.) Net income = $10; Comprehensive income = $30.

Explanation:

The computation and effect of these two events increase net income and comprehensive income is shown below:

Since there is a gain on sale of investment so it increased the net income

So the net income would be increased by $10

And, there is an Unrealized gain on investment from an increase in fair value of $20

So, the comprehensive income increased by

= $10 + $20

= $30

Hence, the correct option is B

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On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million, $1.00 par, common shares, t
Verizon [17]

Answer:

1. Dr Stock dividends $60 million

Cr Common stock $60 million

2. $1

Explanation:

Preparation of the journal entry that summarizes the declaration and distribution of the stock split

Journal Entries for Siewert Inc

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1. Based on the information given we were told that On June 13, the board of directors of the company declared a 2-for-1 stock split on its 60 million which means that the Journal entry will be recorded as :

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(To record issue of stock dividend)

2. The Par value per share after split =$1 reason been that split are often in form of stock dividend.

8 0
3 years ago
Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a
aleksklad [387]

Answer:

5.01%

Explanation:

The bond nominal yield to call is  5.01%

4 0
3 years ago
Read 2 more answers
Mondo Corporation is a U.S. firm that invoices some of its exports in Japanese yen. If it expects the yen to weaken, it could __
Allisa [31]

Answer:

The answer is 'sell future contracts on yen

Explanation:

Futures contract is a form of derivative that is standardized. It occurs through the exchange rather than over the counter. It is safe from default or counterparty risk because the clearing house guarantees any loss.

Futures contract obligates the parties involved to either buy or sell the underlying security.

Because Mondo corporation is expecting some of its exports in yen and it is afraid of fall in exchange of yen relative to US dollar, to hedge the risk, it must sell future contracts on yen.

5 0
3 years ago
What was the opening price of Dow Jones Industrial Average on Nov 29, 2018 in the format of XXXXX.XX?
bezimeni [28]
21029.47 is the answer darlin
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2 years ago
Which of the following describes what the Fed would do to pursue an expansionary monetary​ policy? A. use discount policy to rai
koban [17]

Answer:

Option (B) is correct.

Explanation:

Open market operations is a monetary policy instrument that is used by the Federal reserve for controlling the money supply in an economy. If there is a need to decrease the money supply in an economy then fed sells the government securities to the public and on the other hand if there is a need to increase the money supply in an economy then fed purchases the government securities from the public.

So, here the expansionary policy is to purchases the treasury bills from the public.

7 0
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