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Makovka662 [10]
3 years ago
9

Bloom now believes it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recov

er their fair value. Of the $400,000 decline in fair value, Bloom attributes $250,000 to credit losses, and $150,000 to noncredit losses. Record the entry to reclassify the unrealized loss recorded in the year 2020.
Business
1 answer:
kow [346]3 years ago
6 0

Answer:

Other than Temporary Impairment loss (Dr.) $400,000

Discount on bond investment (Cr.) $400,000

Fair value Adjustment (Dr.) $150,000

Net unrealized holding gain/losses - OCI (Cr.) $150,000

Explanation:

To record impairment loss on bond we debit the Other than temporary impairment loss account debit and discount on bond investment as credit by $400,000 which is the decline in fair value of Taylor bond.

To record the impairment loss recognized due to fair value method we debit the Fair value adjustment account as debit and Unrealized holding gains/losses as credit by $150,000.

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The eleven southern New Jersey stores of Elder Dry Goods have been hurt in recent months by a large increase in shoplifting loss
Ronch [10]

Answer: loss control and retention

Explanation:

The options to the question are:

A. retention

B) loss control and retention

C) transfer through insurance

D) avoidance

Based on the information given in the question, management techniques would be most appropriate for this problem is the loss control and retention.

Loss control also referred to as risk reduction can be done through the prevention of loss by reducing the probability of risk, thereby minimizing the loss. This will be vital in this scenario as the shoplifting will reduce.

4 0
3 years ago
Businesses that engage in ultrahazardous activities are strictly liable for any injuries.
3241004551 [841]
I think the answer is true.
7 0
3 years ago
Explain how the amount of a down payment affects your monthly mortgage payments.
madam [21]

Answer:

The more money you put down, the smaller your principal value becomes. Having a smaller principal value will make your monthly payments smaller.

Explanation:

The amount of a down payment you pay will affect your monthly mortgage payment. If you put a larger down payment on your mortgage/loan you will pay less in monthly mortgage payments. If you put a smaller down payment you will end up paying more monthly.

7 0
3 years ago
If a company is considering the purchase of a parcel of land that was acquired by the seller for $96,000 is offered for sale at
Marta_Voda [28]

Answer:

correct option is b. $159,000

Explanation:

given data

purchase land = $96,000

offer sale = $172,000

assessed for tax purposes = $106,000

recognized  purchaser worth = $162,000

purchased = $159,000

solution

we know that when we purchase a parcel of land then

the price paid for by the purchaser is the amount  and that amount is to be recorded in the books

so that land will record in the purchaser books is  $159,000

so correct option is b. $159,000  

5 0
4 years ago
Explain how negative externalities and, more specifically, pollution often result from a lack of clear property rights.
vichka [17]

Answer:

An externality exists if a financial transaction affects the benefit to third parties. Externalities can be both positive and negative, depending if these affect the benefit to third parties on a positive or negative way.  

An example of a negative external effect is air pollution; a factory owner may lack the incentive to limit air pollutant emissions because the damage mainly affects someone else, that is, it doesn't affect his property, but someone else's property or common property (such as the case of the environment).

Therefore, if there were more specific regulations regarding property and the effects of the misuse of this right, contamination could be avoided.

3 0
3 years ago
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