Answer:
$10,000.
The investment is written down to fair value, and the impairment loss is recognized in net income.
Explanation:
Given that
Purchase value of the bond = $100,000
Decline value = $70,000
Decrease in fair value = $30,000
Credit losses = $10,000
Non credit losses = $20,000
Based on the above information, the before tax net income for year 2016 is reduced by $10,000 as Nicholds wants to hold the bond till maturity date. So the non credit part of decrease in fair value would not be adjusted
Therefore only credit losses should be relevant
As it is mentioned in the question that the debt investment fair value is to be considered as an available-for-sale investment and viewed as an other than temporary therefore the written down of investment to fair value and the loss of impairment should be recorded in the net income
Answer:
informal teams
Explanation:
that way the job can be a little fun and not to serious.
Answer:
C) a formal contract that specifies a firm's obligations to the bondholders.
Explanation:
In terms of public offerings of bonds, an indenture is a formal contract that specifies a firm's obligations to the bondholders. It is typically a legal and binding contract between a firm (bond issuer) and its bondholders, which provides detailed information on terms and clauses.
The indenture specifies the essential features of a bond, these includes callabilty of bonds, interest payments time, maturity date of the bond, interest calculation method etc.
Hence, in case there's a conflict between the bond issuer and the bondholders; the indenture would be the reference document to be used for conflict resolution.
Answer:
a. See attachment below
b. 60 seconds per unit
c. 4 workstations
d. See attachment below
e. Efficiency = 81.25%
Explanation:
b.
Time required = 60 units per hour
Task time = Time required to for production per units
Since 1 hour is required for 60 units and there are 3600 seconds in one hour (60 * 60)
This is calculated by.
3600seconds/60 units
= 60 seconds per unit
c. Theoretical Number of workstations is calculated by:
Total Time Taken/Task Time
=(30 + 50 + 25 + 10 + 25 + 15 + 10 + 30)/60
= 195/60
= 3.25
This is round up to 4 workstations
d. See Attachment Below
e. Efficiency is calculated as:
(Total Time Taken)/ (Theoretical Workstations * Task Time)
= 195/(4 * 60)
= 195/240
= 0.8125
= 81.25%
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Actual:
Cost per hour=18
Labor hours per unit= 1.5
Standard:
Labor cost per hour= $17.50
Labor hours per unit= 1.4
During March, Padmaja produced 2,100 units.
To calculate the labor efficiency variance we need to use the following formula:
Direct labor efficiency variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor efficiency variance= (2,100*1.4hours - 2,100*1.5 hours)*17.50
Direct labor efficiency variance= $3,675 unfavorable