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Arisa [49]
3 years ago
14

Consider the following two separate events for a company during the year: 1. Loss on sale of investments = $30. 2. Unrealized ga

in on investment from increase in fair value = $20. The company reports the unrealized gain as a component of other comprehensive income. By how much would these two events affect net income and comprehensive income, ignoring tax effects?
Business
1 answer:
Serggg [28]3 years ago
7 0

Answer:

A.) Net income = $(30); Comprehensive income = $(10).

Explanation:

First, the multiple choices to the question

A.) Net income = $(30); Comprehensive income = $(10).

B.) Net income = $(30); Comprehensive income = $20.

C.) Net income = $0; Comprehensive income = $(10).

D.) Net income = $(10); Comprehensive income = $20.

The question is to determine the effect of the two events listed on the Net Income as well as the comprehensive income

First, we look at event one:

The loss of sales of investment = #30

The effect of this is to debit the income statement because it is a net loss of $30. It brings a reduction to the income side. Income will usually have a credit balance, but a net loss reduces income therefore, it will be debited.

Second, the Unrealized gain on investment from increase in fair value = $20

The effect is $10 which represents $30 from the loss - $20 from the unrealised gain. It will however, also decrease the comprehensive income by the $10.

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Explanation:

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Hence Taxable-equivalent yield =.105/(1-.28)  

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3 years ago
Richard likes to smoke tobacco from a pipe. However, he is very particular about which pipes he uses. He will only buy pipes mad
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<h3>What is specialty product?</h3>

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2 years ago
find the accumulated amount at the end of 9 months on an $800 deposit in a bank paying simple interest at a rate of 6% per year.
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As per the given figure, after calculating the accumulated amount, the figure that has been arrived is $1,232.

<h3>What is the accumulated amount?</h3>

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