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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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United Technologies is a good example of a​ ________ strategy because it uses individual or separate family brand​ names, includ
Andrew [12]

Answer:

e. house of brands

Explanation:

House of brands is when a company has many brands. Each one is independent, with its own target audience. They each communicate a unique brand value to customers.

United Technologies has adopted this strategy by developing various brands: Otis Elevators, Carrier Heaters and Air-conditioners, Sundstrand Aerospace, and Sikorsky Helicopters.

8 0
3 years ago
Sadler Corporation purchased equipment to be used in manufacturing. The purchase was made at the beginning of 2015 by paying cas
il63 [147K]

Answer:

The journals entry to record depreciation on the equipment for 2016 will be:

Debit Depreciation expense $14,000

Credit Accumulated depreciation $14,000

<em>(To record depreciation expense for Year 2016)</em>

Explanation:

Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($150,000 - $10,000) / 10 years = $14,000 yearly depreciation expense. This applies to Years 2015 and 2016.

The change in the estimate in Year 2017 will not affect the depreciation expense for 2016 based on the previous parameters,

6 0
3 years ago
The growth of industrial manufacturing affected skilled tradesmen by:.
alina1380 [7]

answer:

removing control of their labor and their sense of independence.

8 0
2 years ago
Effective December 15th, 2018, the operating leases will be recorded: A) as an asset and liability on the balance sheet of the l
Shalnov [3]

Answer: C) on the balance sheet of the lessee with value equal to the present value of future lease payments.

Explanation:

According to IFRS 16 and US GAAP ASC 842 which commenced Jan 1, 2019 and Dec 15, 2018 respectively, Lease payments are to be recognized on the balance sheet of the Lessee at the present value of the future payments on the lease.

The discount rate to be used will be implicitly stated in the lease agreement if both parties were able to determine it.

4 0
3 years ago
Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to gro
aleksandrvk [35]

Answer:            ke = D1/Po + g

                 0.1025 = D1/57.50 + 0.06

        0.1025-0.06 = D1/57.50

            0.0425     = D1/57.50

                      D1    = 0.0425 x 57.50

                      D1    = $2.444

           

Explanation: Cost of equity is equal to dividend in 1 year's time divided by the current market price plus the growth rate. Other variables were provided in the question except the dividend at the end of the year (D1).

Thus, D1 becomes the subject of the formula. The appropriate cost of equity is $2.44. The correct answer is B.

6 0
3 years ago
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