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Virty [35]
3 years ago
15

Amex Corporation invests excess cash to purchase $25,000 in corporate bonds on March 30, 2018. In addition to the $25,000, Amex

also paid a brokerage fee of $1,000. Amex intends to hold the bonds until maturity and has the ability to do so. When the bonds mature on March 30, 2020, Amex plans to use the cash for its business expansion. Which of the following is included in the journal entry on March 30, 2018?A) a debit to Held-to-Maturity Debt Investments for $25,000B) a debit to Trading-Debt Investments for $25,000C) a debit to Held-to-Maturity Debt Investments for $26,000D) a debit to Trading-Debt Investments for $26,000
Business
1 answer:
Yanka [14]3 years ago
6 0

Answer:

C. a debit to Held-to-Maturity Debt investments for $26,000

Explanation:

In as much Amex corporation is intending to place on hold the bonds till they mature; total investments must be recorded i.e price of bonds including commission for brokerage, as held to securities until they mature.

Classification of investments in securities are ; Held-to-maturity, meaning that the company is not planning to sell the investments hence hold on to them till they mature. They are however classified as non current assets. Investment in securities could also be made available for sale or held for further trading.

The journal entry is therefore;

Dr Held-to-Maturity debts investments $26,000

Cr Cash $26,000

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A second mover: a.is typically ineffective in its response to a first mover. b.attempts to provide a product with greater custom
Viktor [21]

Answer:

b. attempts to provide a product with greater customer value than the first mover.

Explanation:

In marketing, it is believed that the first mover gains an edge over the followers. A first mover is the initial entrant and provider of products and services catering to a marketing segment.

A second mover refers to the immediate next of the first mover. The advantage second mover has over the first mover being, it can analyze the response the first mover generated and effectively gauge what went right and what went wrong for the first mover.

This way, the second mover can provide improved products than the first mover by not committing same errors as the first mover.

5 0
3 years ago
NeNe is an accountant and a U.S. citizen who has accepted a permanent position in Madrid, Spain, for a Spanish financial service
s2008m [1.1K]

Question options:

a) NeNe can exclude all of the housing payment because she worked more than 330 days overseas

b) 16,128

c) 23,872

d) 14,112

e) None of her salary can be excluded from gross income

Answer:

a) NeNe can exclude all of the housing payment because she worked more than 330 days overseas

Explanation:

US citizens working and living abroad would still have to remit taxes to the US, albeit with exclusions.

Under US tax law, IRS states that US citizens may deduct/exclude the value of meal and lodging expenses granted to them by the employer. Under the foreign housing exclusion, Nene qualifies for the benefits of housing exclusion because she has a foreign earned income and has lived at least 330 days within a period of 12 consecutive months in the foreign country.

4 0
3 years ago
Jensen Co. expects to pay €50,000 in one month for its imports from France. It also expects to receive €200,000 for its exports
Julli [10]

Answer:

-$5,873

Explanation:

For computation of maximum one month loss in dollars first we need to find out the net exposure and maximum one month loss in percentage which is shown below:-

Net exposure = Received amount - Paid amount

= €200,000 - €50,000

= €150,000

Maximum one - month loss in Percentage = Next month percentage - (Alpha × Euro percentage)

= 2% - (1.96 × 2.5%)

= -2.9%

Maximum one - month loss in Dollars = Net exposure × Current spot rate of the euro × Maximum one - month loss in Percentage

= €150,000 × $1.35 × (-0.029)

= -$5,873

5 0
3 years ago
Which selection below is not a leadership style
EastWind [94]
Autocratic
All the other options are a type of leadership
6 0
3 years ago
Fern invested $6400 into a continuously compounded account with an interest rate of 1.5%. After 10 years, how much is the accoun
777dan777 [17]

Answer:

FV= $7,435.74

Explanation:

Giving the following information:

Initial investment= $6,400

Interest rate= 1.5%

Number of periods= 10 years

<u>To calculate the value of the account in ten years, we need to use the following formula:</u>

FV= PV*e^(i*n)

FV= 6,400*e^(0.015*10)

FV= $7,435.74

6 0
3 years ago
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