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Leto [7]
3 years ago
5

Nichols Enterprises has an investment in 30,500 bonds of Elliott Electronics that Nichols accounts for as a security available-f

or-sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $14 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $18 per bond. Nichols should carry the Elliott investment on its balance sheet at:a. $442,000, the midpoint of Nichols' range of reasonably likely valuations of Elliott.b. $468,000c. $416,000d. Either $416,000 or $468,000 as either are defensible valuations.
Business
1 answer:
Alja [10]3 years ago
6 0

Answer:

30,500 bonds x $14 per bond = $427,000

Explanation:

Nicols Enterprises must carry the Elliot investment on its balance sheet using the fair market value of the stocks (value given by the stock market).

The reliability principle states that only transactions that can be proven have to be recorded. So how can Nichols prove that Elliott's stock is worth $18, or maybe $1,000 or even $1 million. They can´t prove any of that, that is why they have to use the fair market value.

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During 2021, its first year of operations, Ashbaugh Industries recorded sales of $21,000,000 and experienced returns of $1,400,0
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Answer:

Credit to refund liability of $280,000.

Explanation:

The year end adjusting entry would be

Sales Return $280,000 ($21 million × 8% - $1,400,000)    

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(Being the anticipated sales return is recorded)

Here the sales return is debited as it increased the sales return and the refund liability is credited as it increased the liabilities

The same is to be considered

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2 years ago
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3 years ago
The balance in the finished goods inventory account on july 1, 2006, was
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4 0
3 years ago
Bonnie made the final payment to Big Bank on the 30-year mortgage loan she had on her home. Shortly thereafter Big Bank, to prov
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Because she had repaid the mortgage fully, the Big Bank filed a satisfaction of a mortgage with Bonnie to discharge her lien.

<h3>What is a satisfaction of mortgage?</h3>

This refers to a document that serves as evidence the debtor has paid the mortgage in full and also releases the lien associated with the loan from your property and transferring the title to them.

Hence, because she had repaid the mortgage fully, the Big Bank filed a satisfaction of a mortgage with Bonnie to discharge her lien.

Read more about mortgage

<em>brainly.com/question/22598793</em>

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5 0
2 years ago
Maggie purchased a life insurance policy. She was concerned that if she became disabled, she would no longer be able to pay the
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Answer:

The correct answer is letter "B": rider.

Explanation:

While talking about insurance, riders are provisions added to the regular coverage for life, home, or auto policies. The insured can request adding the rider under a determined fee which is usually low because there is little underwriting involved. Riders are customizable amendments that fulfill very specific needs of the policyholders.

<em>In Maggie's case, a rider was added to protect her in the case she becomes disabled because she is concerned that event can happen.</em>

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