Answer:
$0
Explanation:
According to US GAAP the reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset is reduced than the book value of the asset.
Amortized Cost / Book value = $50,000
Market Value = $53,000
Discounted Value = $51,000
There is no Impairment loss on this asset as the fair market value is more than the book value of the asset.
Answer:
expectations theory
Explanation:
Expectations theory is defined as the prediction of what short-term interest rates will amount to in future based on the current long-term interest rates on an investment.
The theory suggests or states that "an investor will earn the same amount of interest by investing in two consecutive one-year bond investments that in one two-year bond investment".
Simply put, the theory say that one can invest twice in a one year bond and still make the same interest rate as investing once in a two-year bond.
This theory helps investors to make profits faster and even higher through multiple investments on bonds.
Cheers.
Answer:
Equivalent units of production= 68,000 units
Explanation:
Giving the following information:
Units started and completed= 80,000 - 20,000= 60,000
Units in ending inventory= 20,000 nits that were 40% complete in the ending work in process inventory at the end of January.
<u>To calculate the equivalent units for conversion costs, we need to use the following formula:</u>
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 60,000 + (20,000*0.4)
Equivalent units of production= 68,000 units
