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prohojiy [21]
3 years ago
8

Ayayai Co. has a held-to-maturity investment in the bonds of Schuyler Corp. with a carrying value of $56,800. Ayayai determined

that due to poor economic prospects for Schuyler, the bonds have decreased in value to $48,100. It is determined that this loss in value is uncollectible. Prepare the journal entry, if any, to record the reduction in value.
Business
1 answer:
Mumz [18]3 years ago
6 0

Answer:

journal entry are as given below

Explanation:

given data

carrying value = $56,800

bonds decreased value = $48,100

solution

we know that here impairment loss for organization when future estimate value of assets is less than carrying value of assets

and all loss and expenses are debit

and by the impairment loss value of investment decline so maturity id credit

so here

impairment loss is

impairment loss = carrying loss - decrease value ............1

impairment loss = $56,800 - $48,100

impairment loss = $8700

so journal entry are as

date           title                                            Debit                   Credit

              Impairment loss                           $8700

              investment held to maturity                                     $8700

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6 0
3 years ago
Collings College has annual fixed operating costs of $12,500,000 and variable operating costs of $1,000 per student. Tuition is
hjlf

Answer:

2,575,0000

Explanation:

The Fixed cost will remain fixed i.e : $12500000.

The variable cost is $1000 per student and the projected enrollment is 1500 students, hence the total variable cost is: 1000*1500 = $1500000.

The tuition fee is $8000 per student and projected enrollment is 1500 students, hence the total tuition fee will be: 8000*1500 = $12000000.

Hence the total cost is : 12500000+1500000+12000000 = 26000000.

The College received grants equalled to = 250000.

Hence the required amount is = 26000000-250000 = 25750000.

Hope this Helps

Thank You.

5 0
3 years ago
A major reason why it is difficult to lower the barriers to free trade is A. the loss of jobs without any gain of jobs from free
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Answer:

B) the uneven distribution of gains and losses from free trade.

Explanation:

One of the most important reasons why governments impose trade barriers is to protect domestic jobs (and domestic industries). We are part of a society (country), and society's most important component is people, not money. Generally the economic gains of free trade are larger than the economic losses, but the economic losses hurt the most.

Imagine if no trade barriers actually existed, how many millions of jobs would be lost in the US. Trade barriers are nothing new, the current president didn't invent them. He just incinerated them.

How does a leader tell the people that 10 or 20 million must lose their jobs and probably will not be able to find any similar jobs in the future just because the rest of society will benefit from cheaper products. The lives of 20 million households (50-80 million people) would be destroyed, while 280 million people would benefit.

The amount of harm done to the people that lose their jobs is much greater than any individual benefit.

6 0
4 years ago
Journalizing Transactions Monroe Company rents and sells electronic equipment. During September, Monroe engaged in the transacti
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fresh avocado

Explanation:

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4 0
2 years ago
Mary Willis is the advertising manager for Concord Shoe Store. She is currently working on a major promotional campaign. Her ide
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Answer:

Current break even units = $17,125

New break even point in units = $21,200

Explanation:

The computation of current break-even point in units and comparison with break-even point in units is shown below:-

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= $411,000 ÷ ($60 - $36)

= $411,000 ÷ $24

= $17,125

New break even point in units =  Fixed cost ÷ Contribution margin per unit

= ($411,000 + $34,200) ÷ ($57 - $36)

= $445,200 ÷ $21

= $21,200

8 0
3 years ago
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