Answer: b.balance sheet as an adjustment to stockholders' equity
Explanation:
Available-for-Sale Investments are investments by the company into other companies by means of owning their bonds or stocks. These bonds or stock are made available for selling and as such the company will not hold them to maturity.
For these types of instruments, the company will record the Unrealized Gains (losses) in Other Comprehensive Income. This is a part of the Equity Section of the balance sheet.
At the end of the period, the Unrealized Gains (losses) resulting from the Available for Sale Securities do not go to the income statement but rather are put into the Accumulated Other Comprehensive Income distinction in the Equity section of the balance sheet. You can find it right below the Retained Earnings line.
Answer:
Land amount= 367,990
Interest amount= 149,010
Explanation:
this question can be solve applying the concept of future value, as it is a zero interest or zero coupon it only, it means the bond does not pay money in the time, so
where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:
solving we have PV=367,990
so the land value is 367,990 and the interest expenses are 517,000 - 367,990=149,010
Answer:
The answer is B $280,000
Explanation:
capital assets includes investment property and property held for personal use (e.g., personal residence and furnishings), but excludes property used in a trade or business (e.g., limousine).
Therefore the capital assets for Joe Hall is $280,000 which is his personal residence and furnishings excluding his limousine which is for business use
Answer:
Predetermined manufacturing overhead rate= $29 per machine hour
Explanation:
Giving the following information:
Estimated machine-hours 33,100
Estimated variable manufacturing overhead $5.72 per machine-hour
Estimated total fixed manufacturing overhead $770,568
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (770,568/33,100) + 5.72
Predetermined manufacturing overhead rate= $29 per machine hour
