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aliya0001 [1]
3 years ago
8

Bonita Inc. has an investment in available-for-sale securities of $65000. This investment experienced an unrealized loss of $610

0 during the current year. Assuming a 40% tax rate, the effect of this loss on comprehensive income will be
Business
1 answer:
Serga [27]3 years ago
6 0

Answer:

Decrease by $6100

Explanation:

Any gain or loss adjustment on an investment in available-for-sale securities is accounted for under the title Other Comprehensive Income in the Statement of Profit and Loss and Other Comprehensive Income. Thus, the effect of this loss on comprehensive income will be a Decrease by $6100.

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Suppose the government introduces a new incentive for individuals to save money for retirement. How would this affect the market
masya89 [10]

The supply of loanable funds would increase and interest rates would fall.

For instance, they may lower or do away with taxes on savings interest. More people would be motivated to cut back on their present levels of consumption and increase their savings as a result of the enhanced tax benefits associated with saving.

This will result in a rise in the amount of loanable money available (shift to the right.) The interest rate at equilibrium will decrease. People and businesses will have more motivation to borrow as the interest rate declines, pushing up the demand curve and increasing the equilibrium amount of borrowing and lending in the market.

Learn more about interest rates here:

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5 0
2 years ago
Which of the following is a characteristic of both the sales approach for service-type warranties and the expense approach for a
user100 [1]

Answer: Unearned warranty revenue

Explanation:

Unearned warranty revenue is usually shown as an unearned revenues in the accrued liabilities during the preparation of the balance sheets.

It should be noted that the unearned warranty revenue is a characteristic of both the sales approach for service-type warranties and the expense approach for assurance-type warranties.

3 0
3 years ago
Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. Suppose also that the expected re
iogann1982 [59]

Answer: 10%

Explanation:

The Capital Asset Pricing Model or CAPM for short can be used to calculate expected return in the following manner,

Expected return = Rf+B(Rm-Rf)

Rf = Risk free rate

B = Beta

Rm= Market return.

Plugging the figures in we have

Expected return = Rf+B(Rm-Rf)

= 0.04 + 1(0.1 - 0.04)

= 0.1

= 10%

5 0
3 years ago
When a business cycle enters a trough of a recession or depression, the federal government can use _______ and ________ to offse
Korolek [52]

Answer: Monetary and fiscal policies

Explanation: Monetary and fiscal policies are two tools of the governments all over the world to stabilize economy in times of depression or recession.

These two can be explained as follows :-

1. Monetary policy refers to the decisions taken by the govt. to stabilize economy by adjusting the interest rates on short term borrowings or by changing the supply of money in the economy as per the need.

2. Whereas in fiscal policy federal govt. use tax collection and expenditure control for coping with depression or recession.

7 0
3 years ago
You buy a new piece of equipment for $7,360, and you receive a cash inflow of $1,000 per year for 10 years. what is the internal
-Dominant- [34]
The internal rate of return is

6%
3 0
3 years ago
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