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DIA [1.3K]
3 years ago
11

Fabio corporation is considering eliminating a department that has a contribution margin of $26,000 and $74,000 in fixed costs.

of the fixed costs, $18,000 cannot be avoided. the effect of eliminating this department on fabio's overall net operating income would be:
Business
1 answer:
Sophie [7]3 years ago
5 0
Fabio's overall net operating income would increase by $30,000 if Fabio corporation eliminates the department. This change can be found by determining the difference between the contribution margin and the avoidable fixed cost of the eliminated department<span>. The department has $56,000 (74,000-18,000) of avoidable fixed cost and $26,000 of contribution margin. The difference between them is $30,000.</span>
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oreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the invest
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Answer:

1. Record the adjusted for Dec 31 2021

Dr Unrealized holding loss—OCI 26,000

Cr Fair value adjustment 26,000

2.

No amounts would be reported in the income statement at December 31, 2021 .

Amount $ 0

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± Adjustment needed to update fair value?

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