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sergey [27]
3 years ago
12

At the end of the first year of operations, the total cost of the trading securities portfolio is $245,000. Total fair value is

$250,000. The financial statements should show
A. an addition to an asset of $5,000 and a realized gain of $5,000.
B. an addition to an asset of $5,000 and an unrealized gain of $5,000 in the stockholders
Business
1 answer:
Korvikt [17]3 years ago
7 0

Answer:

B. an addition to an asset of $5,000 and an unrealized gain of $5,000 in the stockholders

Explanation:

There is a cost of $245,000 and the value that can be received today in case the trading securities are sold = $250,000

Thus, there can be gain in case if it is sold of $5,000.

Since it is not sold right now, and is current in nature because it is valued at fair price and not at historical cost, the gain is unrealized in nature.

Thus, this increase in value would increase the value of assets in the books, and that the gain shall be recorded as other income as unrealized gains from securities.

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A market maker who acts as a dealer in one or more securities on the floor of the nyse is called a:
Anna71 [15]
The answer is Specialist.

The brainest answer would be appreciated.
4 0
3 years ago
The production possibility frontier is used to illustrate the concept of A) the laissez-faire economy. B) opportunity costs. C)
julia-pushkina [17]

Answer:

B) opportunity costs.

Explanation:

The production possibility frontier is used to illustrate the concept of <u>opportunity costs</u>. The production possibility frontier shows the combination of goods which can be produced by making use of all the available resources in an economy. In order to produce an extra unit of one good, some amount of other good has to be sacrificed. This is known as opportunity cost.

6 0
3 years ago
On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and
Marrrta [24]

Answer:

Bad debt expense $5.125

Explanation:

Initial Balance    

Accounts Receivable  $ 43.000  

Allowance for Uncollectible Accounts   $ 1.250

Entry    

Allowance for Uncollectible Accounts  $ 775  

Accounts Receivable   $ 775

New Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 475

Entry Adjustment

Bad debt expense  $ 5.125  

Allowance for Uncollectible Accounts   $ 5.125

END Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 5.600

7 0
3 years ago
The recording of the factory labor incurred for general factory use would include a debit to:
DanielleElmas [232]
It would be a debit to FOH (Factory Overhead).
7 0
3 years ago
A simple scoring model is used to decide among three projects that we'll call A, B, and C. The total score for project A is 30,
Flauer [41]

Answer: D) Project A is better than project B for this company at this point in time.

Explanation:

Option D is the best option because we do not know that the basis for the scoring model directly translates to earnings. The scoring of Project A at 30 does not necessarily mean that it's expected to earn those amounts of revenue and therefore triple that of Project C. We do not know because the information is not complete.

What we do know is that A has the highest score out of all projects and this is why it is better to do Project A as opposed to Project B.

4 0
3 years ago
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