Answer:
$10,000.
The investment is written down to fair value, and the impairment loss is recognized in net income.
Explanation:
Given that
Purchase value of the bond = $100,000
Decline value = $70,000
Decrease in fair value = $30,000
Credit losses = $10,000
Non credit losses = $20,000
Based on the above information, the before tax net income for year 2016 is reduced by $10,000 as Nicholds wants to hold the bond till maturity date. So the non credit part of decrease in fair value would not be adjusted
Therefore only credit losses should be relevant
As it is mentioned in the question that the debt investment fair value is to be considered as an available-for-sale investment and viewed as an other than temporary therefore the written down of investment to fair value and the loss of impairment should be recorded in the net income
It's because they <span>showed reckless disregard for Hill City’s residents and others
the company fully known that worker's concentration tend to decrease after woring for a certain hours.
By knowingly allow this to happen, Fleet trucking company is directly involved for the spilled chemicals accident and should take all responsibilities for it.
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The answer is True. You have more samples, the result is more accurate.
Answer and Explanation:
The journal entries are shown below:
On Mar 12
Account receivable Dr $9,100
To Service revenue $9,100
(Being the service provided on the account is recorded)
For recording this we debited the account receivable as it increased the assets and credited the service revenue as it also increased the revenue
On Mar 20
Cash $8,918
Sales discount ($9,100 × 2%) $182
To Accounts receivable $9,100
(Being cash received recorded)
For recording this we debited the sales discount and cash as it increased the discount and assets and credited the account receivable as it reduced the assets
