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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 building of factories and investing in facilities for extraction of natural resources is called _____________ investment.
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The building of factories and investing in facilities for extraction of natural resources is called direct foreign investment.

Manufactured items are used to provide other items and services,called capital items. A nondurable exact lasts for much less than five years whilst sued on a regular foundation. the paradox of price takes place when some requirements have little fee, while a few non-necessities have a much higher price.

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7 0
2 years ago
Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $31,500 f
salantis [7]

Answer:

Date                     Details                                                Debit               Credit

December 31,      Employee benefits expense            $41,150

                             Medical insurance payable                                    $31,500

                             Employee Retirement program                             $9,650

                             payable

Working

= 31,500 + 9,650

= $41,150

7 0
3 years ago
Charging high prices to earn large profits during a time when there is little competitionrepresents a ________ strategy:________
Olin [163]

Answer:

Skimming

Explanation:

Price skimming, also known as skim pricing, is a pricing strategy used by those who face little or no competion, what normally happens is that a firm charges a high price and then gradually may need to lowes the price to attract more customers.

Price skimming is used to earn large profits especiallyn when a new product or service is introduced into the market. The pricing strategy is largely useful iwhen the firm is the first to enter the marketplace. The aim of this is to generate the large profit in the shortest time possible.

6 0
3 years ago
Read 2 more answers
Use context clues to explain the meaning of the word interdependence in your own words.
katrin2010 [14]
Being dependent on multiple things
8 0
3 years ago
Which of the following is a shortcoming of GDP? a. GDP excludes nonmarket transactions. b. GDP excludes business investment spen
Aleks04 [339]

Answer:

The correct answer is A. GDP excludes nonmarket transactions.

Explanation:

The GDP is an indicator that is considered deficient in the measurement of the quality of life of the people, since the aggregate of the production of a country prevails during a year. However, there are other types of transactions that are not considered in the calculation, due to how difficult it would be to detect them, such as work carried out at home and undeclared operations to evade taxes.

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3 years ago
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