Hobson Company bought the securities listed below during 2020. These securities were classified as trading securities. In its De
cember 31, 2020, income statement Hobson reported a net unrealized holding loss of $15,500 on these securities. Pertinent data at the end of June 2021 is as follows: Security Cost Fair Value
X $371,000 $343,500
Y 185,000 162,400
Z 424,000 407,800
Required:
What amount of unrealized holding loss on these securities should Hobson include in its income statement for the six months ended June 30, 2021?
When know the net profit of all financial businesses is maximized, and the resource distribution must be effective and achievable, but there must be a consideration, market allocation must be competitive or well
so here when coke prices go up. The consumer will probably increase the consumption of coke and the marginal utility of the coke will decrease, while the overall utility of the coke will increase.
Terminal EV = EV/EBITDA X EBITDA value of final year of forecast.
<h3>What is EBITDA?</h3>
EV stands for Enterprise Value and is the numerator in the EV/EBITDA ratio. A firm’s EV is equal to its equity value plus its debt less any cash debt less cash is referred to as net debt. In finance, the terminal value of a security is the present value at a future point in time of all future cash flows when we expect stable growth rate forever. The perpetual growth method of calculating a terminal value formula is the preferred method among academics as it has a mathematical theory behind it. This method assumes the business will continue to generate Free Cash Flow (FCF) at a normalized state forever. The exit multiple approach is more common among industry professionals, as they prefer to compare the value of something they can observe in the market.
The answer is "management companies". <span>Hotel companies are increasingly opting for management companies..... </span> An management company refers to a company who owns or possesses the regular zones of a multi-unit advancement and keeps up them for the benefit of all the property proprietors. A multi-unit advancement involves houses, lofts or a blend of both. The regular zones incorporate the auto stop, green spaces, mutual foyers and passages in the apartment blocks. The proprietors of property in the advancement progress become members of the administration organization and might be chosen as chiefs.
No, the investment is not increased in any accounting method so it must not be increased.
Explanation:
The reason is that in the cost method, the investment remains the same because the return is treated as income.
In the held for trading, the return received is treated as decrease in the investment because the dividend received decreases the fair value of the investment. Similarly in the equity method the dividend received is treated as cash withdrawal or we can say that dividend received decreases the fair value of the investment.