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Deffense [45]
3 years ago
7

Beresford Inc. purchased several investment securities during 2015, its first year of operations. The following information pert

ains to these securities. The fluctuations in their fair values are not considered permanent. Fair Value Fair Value Amortized Cost Amortized Cost Held to Maturity Securities: 12/31/2015 12/31/2016 12/31/2015 12/31/2016 ABC Co. Bonds $375,000 $400,000 $367,500 $360,000 Available for Sale Securities: LMN Co. Debt Securities $130,500 $150,400 $145,000 $140,000 Fair Value Fair Value FV through NI Securities: 12/31/2015 12/31/2016 Cost DEF Co. Stock $48,000 $59,500 $66,000 GEH Inc. Stock $47,000 $77,000 $39,000 IJK Inc. Stock $44,000 $38,500 $32,900 What balance sheet amount would Beresford report for its total investment securities at 12/31/2015?
Business
1 answer:
Minchanka [31]3 years ago
6 0

Answer:

$637,000

Explanation:

The computation of the  total investment securities reported is shown below:

= ABC Co. bonds amortization cost for year 2015 + DEF Co fair value for year 2015 + GEH Inc fair value for the year 2015 + IJK Inc fair value for the year 2015 + LMN co stock fair value for the year 2015

= $367,500 + $48,000 + $47,000 + $44,000 + $130,500

= $637,000

We simply applied the above formula

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chubhunter [2.5K]

Answer:

a

Explanation:

6 0
2 years ago
Assume that Jing Company earned $29,400 cash revenue and incurred $18,500 in cash expenses in Year 3. The company uses the strai
ElenaW [278]

Answer:

Explanation:

In every single company, the main aim of installing an office equipment is to make profit. After the office equipment made a revenue of $29400, Jing Company incurred expenses of $18500. The value of the equipment was $29400- $18500= $10900. It was sold for $10400 meaning that the net income of the equipment was $10400-$10900= -$500. Therefore, it will incur a net loss of $500.

8 0
3 years ago
An investor will choose between Asset Q with an expected return of 6.5% and a standard deviation of 5.5%, Asset U with an expect
MakcuM [25]

Answer:

Asset U

Explanation:

Reward-to-volatility ratio for Asset Q = Expected return / standard deviation

Reward-to-volatility ratio for Asset Q = 6.5% / 5.5%

Reward-to-volatility ratio for Asset Q = 1.1818

Reward-to-volatility ratio for Asset U = Expected return / standard deviation

Reward-to-volatility ratio for Asset U = 8.8% / 5.5%

Reward-to-volatility ratio for Asset U = 1.6

Reward-to-volatility ratio for Asset B = Expected return / standard deviation

Reward-to-volatility ratio for Asset B = 8.8% / 6.5%

Reward-to-volatility ratio for Asset B = 1.3538

The  investor should prefer Asset U because its has the highest reward to volatility ratio among the three options.

8 0
3 years ago
The expansionary phase of the business cycle is characterized by
Leokris [45]

Answer:

<u>increasing real output and reducing unemployment</u>

Explanation:

The expansionary phase of the cycle is business characterized by the i<em><u>ncreasing real output and reducing unemployment.</u></em>

<em> Business cycle refers to that cycle in which there is increase and decrease or fall and rise of output of goods and services.</em>

<em> Business cycle has main four stages expansion ,peak , contraction and trough.</em>

The main cause of business cycle is the forces of supply and demand , expectation of future and it availability of the capability may also cause the business cycle.

Economic cycle is another name of Business cycle . Business cycle plays a crucial rule in the economy as it influence the demand of the consumer.

4 0
2 years ago
Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $100,000 in sales during the seco
nydimaria [60]

Answer:

c) $20,000.

Explanation:

The computation of the estimated ending inventory is shown below:

We know that

Cost of goods sold = Beginning inventory + purchase made - ending inventory

And, the

Sales - gross profit = Cost of goods sold

$100,000 - $100,000 × 30% = Cost of goods sold

So, cost of goods sold would be

= $100,000 - $30,000

= $70,000

Now the ending inventory would be

$70,000 = $18,000 + $72,000 - ending inventory

$70,000 = $90,000  - ending inventory

So, the ending inventory would be

= $90,000 - $70,000

= $20,000

5 0
2 years ago
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