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3 years ago

7

An inexperienced accountant for Ayayai Corp. showed the following in the income statement: income before income taxes $250,000 a

nd unrealized gain on available-for-sale securities (before taxes) $85,000. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 25% tax rate. Prepare a correct statement of comprehensive income.

1 answer:

Veseljchak [2.6K]3 years ago

8 0

Answer:

Ayayai Corp.

Statement of Comprehensive Income

For the Year Ended xxx, 202x

Net income $187,500

Other comprehensive income:

<u>Unrealized gain on AFS securities $85,000</u>

Comprehensive income $272,500

Explanation:

In order to prepare a statement of comprehensive income we first need to determine net income after taxes = $250,000 x (1 - 25%) = $187,500

Unrealized gains or losses are not taxed until they are actually realized (either make profit or lose money).

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USE THIS INFORMATION FOR THE NEXT THREE QUESTIONS. On Jan. 1st Sally buys a computer with her credit card for $500. This transac

algol [13]

Answer:

Credit card float is the difference in time between the date of purchase and date when the payment is due.

Credit card Float = 54 days

Explanation:

The purchase date is the 1st January but the has only reflected on the credit card on the 3rd but date of purchase remains the 1st.

This is exactly like in depreciation 'available for use date' and 'date of use'

available for use is used to calculate depreciation, so we start on the purchase date.

on the date when payment is due

we have 25th of Feb and the 23rd of Feb the date of payment

we take 23rd the date of payment

just like in assets if an asset has a useful life of 3 years and is sold in the two years the only depreciation or accumulated depreciation we reflect is for the years before it is sold.

Therefore the float period is between 1 jan and 23 feb = 54days

7 0

3 years ago

Superior Company has provided you with the following information before any year-end adjustments: Net credit sales are $131,750.

aleksklad [387]

Answer:

$3,553

Explanation:

Credit losses = Net credit sales × Historical percentage of credit losses

= $131,750 × 3%

= $3,953

Allowance for doubtful account has a credit balance of $400

The estimated bad debt expense can therefore be calculated as:

Bad debt expense = Credit losses - Allowance for doubtful accounts credit balance

= $3,953 - $400

= $3,553

Hence, the estimated bad debt expense using the percentage of credit sales method is $3,553

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3 years ago

You purchased 1,000 shares of the New Fund at a price of $20 per share at the beginning of the year. You paid a front-end load o

Mazyrski [523]

Answer:

6.37%

Explanation:

Rate of return

= (Aggregate investment value after one year - Investment value) / investment value ----- equation 1

Cost of shares =number of shares* price per share

= 1000* $20 =$20,000

Total amount invested = Purchasing cost /(1- front-end load)

= $20,000 / (1-0.04)

=$20,000 / 0.96 = $20,833.333

Investment value after one year

= Total Investment*( 1+ price increase-expense ratio)

= $20,000( 1 +0.12 -0.012)

= $20,000(1.12-0.012) = $20,000 * 1.108 = $22,160

From equation 1 above

Rate of return = ($22,160 - $ 20,833.333) / $20,833.333

$ 1,326.667 / $ 20,833.333

= 0.06368001701

= 0.0637

Since rates of return are expressed as %, we multiply the result by 100 to get

0.0637*100 =6.37%

My rate of return on the fund will be 6.37% if I sell the shares at the end of the year.

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3 years ago

Jerry is an adjuster and has signed a contract with ABC Insurance to adjust claims in an area recently devastated by a hurricane

const2013 [10]

The authority that Jerry has which allows him to complete inspections and settle claims is called an Express authority.

<h3>What is express authority?</h3>

This is a kind of authority that an agent has that is clearly spelled out in writing or given orally.

Jerry has a contract with ABC Insurance that writes what he is allowed to so which means that his powers are expressly given.

Find out more on express authority at brainly.com/question/15008947.

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2 years ago

________ entails even closer economic integration and cooperation than a common market. Group of answer choices A customs union

Goshia [24]

Answer:

An economic union

Explanation:

Economic integration can be defined as a strategic trade arrangement between countries to eliminate or mitigate trade barriers, as well as coordinate fiscal and monetary policy among its members.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time. There are different types of market or trade bloc used in economic integration and these includes;

I. Customs union

II. Free trade area

III. Common market

IV. Political union

VI. Economic union

An economic union can be defined as a trade bloc which comprises of both customs union and a common market.

In a common market, there are free movement of the factors of production and no barrier to trade between member countries. Also, a common market establishes a common external trade policy for non-member countries.

However, an economic union entails even closer economic integration and cooperation among member countries than a common market because it combines customs union and a common market.

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3 years ago