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8090 [49]
3 years ago
6

If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is view

ed as "other than temporary" because the company has incurred a credit loss on the investment:
a. The investment is not written down to fair value.b. The investment is written down to fair value, and the impairment loss is recognized in net income.c. The investment is written down to fair value, and the impairment loss is recognized in accumulated other comprehensive income.d. The investment is written down to fair value, and only the noncredit loss is included in net income.
Business
1 answer:
olganol [36]3 years ago
7 0

Answer: The investment is written down to fair value, and only the credit loss component of the impairment loss is recognized in net income.

Explanation: The fair value of the debt is simply its value if you adjust the price of the debt so that a buyer would be earning the market rate of interest. If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is viewed as "other than temporary" because the company has incurred a credit loss on the investment then the investment is written down to fair value, and only the credit loss component of the impairment loss is recognized in net income.

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Logan Nettles approached Kevin Lang about becoming a partner in a firm that destroys environmental waste. While Logan would like
Stells [14]

Answer:

<em>c. limited partner.</em>

Explanation:

<em>In the presented scenario, Logan Nettles should become a</em> <u>limited partner</u>.

Limited partner is the partnership in which one  limited partner is been required compulsory. This is slightly different from general partnership. In this profit of the business is limited and the debt and dis-advantage on the amount of investment is also limited.

So we can see that Logan is also concerned about his disadvantage which is known as liability.

5 0
3 years ago
Tommy Richards is paid $20.50 an hour for a regular 40-hour week. He earns time and a half if he works overtime. This week Richa
RoseWind [281]

Answer:

$1,094.50

Explanation:

Regular pay is $20.50

Over time pay is $20.50 x 1.5 = $30.75

Tommy earned as follows.

Regular hours : 40 x $20.50 = $820

Overtime hours: 9 x $30.75 =$274.50

Total amount earned

= $820 + $274.50

=$1,094.50

7 0
3 years ago
As a manager, two of Sylvia's strengths are her ability to communicate goals clearly, and her ability to guide, coach, and motiv
lesya692 [45]

Answer:

D, Leading

Explanation:

If Sylvia excels in communicating goals, guiding, coaching, and motivating, I would say that she would be best at D, leading. Leading is a synonym for guiding.

3 0
3 years ago
Simon Software Co. is trying to estimate its optimal capital structure. Right now, Simon has a capital structure that consists o
lidiya [134]

Answer:

14.35%

Explanation:

Simon Software Co

rs= 12%

D/E = 0.25

rRF= 6%

RPM= 5%

Tax rate = 40%.

We are going to find the firm’s current levered beta by using the CAPM formula which is :

rs = rRF+ RPM

12%= 6% + 5%

= 1.2

We are going to find the firm’s unlevered beta by using the Hamada equation:

=bU[1 + (1 −T)(D/E)]

Let plug in the formula

1.2= bU[1 + (0.6)(0.25)]

1.2=(1+0.15)

1.2= 1.15bU

1.2÷1.15

1.0435= bU

We are going to find the new levered beta not the new capital structure using the Hamada equation:

b= bU[1 + (1 −T)(D/E)]

Let plug in the formula

= 1.0435[1 + (0.6)(1)]

=1.0435(1+0.6)

=1.0435(1.6)

= 1.6696

Lastly we are going to find the firm’s new cost of equity given its new beta and the CAPM:

rs= rRF+ RPM(b)

Let plug in the formula

= 6% + 5%(1.6696)

= 14.35%

3 0
3 years ago
Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0
gogolik [260]

Answer:

2080 dollars

Explanation:

Given that Cardinal Industries purchased a generator that cost $11,000

cost of generator = 11000

Estimated life       = 5 years

Residual value     =1000

Hours                    =5000

Depreciation per unit hour = (Cost - residual value)/total lifetime hours

=\frac{11000-1000}{5000} \\=2

For first year the generator was used for 1,040 hours.

Hence depreciation to be charged in I year

= 1040(2)\\=2080

answer is 2080 dollars.

3 0
3 years ago
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