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RUDIKE [14]
3 years ago
12

Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the inves

tments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Inc. $ 520,000 $ 385,000 $ (135,000 ) ANC Corporation 470,000 520,000 50,000 Totals $ 990,000 $ 905,000 $ (85,000 ) Long term: Drake Corporation $ 520,000 $ 580,000 $ 60,000 Aaron Industries 700,000 680,000 (20,000 ) Totals $ 1,220,000 $ 1,260,000 $ 40,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry
Business
1 answer:
rosijanka [135]3 years ago
6 0

Answer and Explanation:

1. The adjusting entry is

Net unrealised holding gain or loss $45,000 ($85,000 - $40,000)  

        To Fair value adjustment $45,000

(being net unrealized holding gain or loss is recorded)

2. In the income statement, the amount that should be reported is zero as the net unrealized gain or loss would be reported as an other comprehensive income also it is a part of the stockholder equity

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Which of the following is considered the output in the systems thinking example of a decision support system?
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Answer:

6) Forecasts:

Explanation:

Considering the available options the output in the systems thinking example of a decision support system is FORECASTS

Given that the Direct Support System's output is any form of representation that is a proud t of DSS input. It is usually in form of graphical objects, forms, or tables. This output shows the information that is derived from input analysis. It is used to support the decision-making process.

Hence, in this case, the correct answer is "Forecasts"

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2 years ago
What are examples of withdrawals from the circular flow of income? Check all that apply. A sharp increase in taxes affects many
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A sharp increase in taxes affects many middle-class families.

A sports-apparel company cuts jobs as a result of slow sales.

A fast-food chain goes out of business and shuts down all of its restaurants.

Explanation:

The circular income or circulated flow is a model for the economy where the big transactions between the market participants are represented as cash flows, goods and services, etc. The cash and goods flows transferred in a closed circuit complement the interest but are going in the reverse direction.

Retirements are factors in an economy that escapes from distributed labor flows and reduces national income sizes.

Withdrawals include: savings, taxes and imports.

6 0
3 years ago
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Finke Company's employees are paid each Friday for hours worked the previous week. At the end of the accounting period, Finke Co
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Answer:

d. Claims exchange transaction

Explanation:

Claims exchange transaction -

It refers to any discrepancy in the claims , is referred to as claims exchange transaction .

In this case the claim of one reduces and others increases and hence the total claim remains constant .

Hence , from the given scenario of the question ,

The correct option is d. Claims exchange transaction .

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3 years ago
Seven sources of waste use resources that do not add value to the product or service. Which activity represents waste: Select on
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D packaging finished goods.
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3 years ago
Markets always allocate resources in ways that meet ideal economic efficiency.
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Answer:

False. Markets can sometimes fail to reach efficiencies when there are externalities, public goods, monopoly, or serious information asymmetries

Explanation:

Invisible hand (effective allocation of resources in a laissez faire economy) sometimes works because when market function effectively and send correct price as signal of values (to society) to producers.

However, when goods can't be traded on markets (public goods) or its values are not correctly reflected on markets (externalities, information asymmetries) or competition is not ensured (monopoly), markets cannot ensure effective allocation of resources.

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3 years ago
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