True is the answer to the question I just had it
Answer:
Unroasted, or green, coffee beans comprise one of the most traded agricultural commodities in the world; the commodity is traded in futures contracts on many exchanges, including the New York Board of Trade, New York Mercantile Exchange, New York Intercontinental Exchange, and the London International Financial Futures ..
Explanation:
~Jane~
If that happen, other investors that bet for the opposite cause of your investment would be the one that gained that money, and you will still able to keep that stocks to collect dividend as long as you don't sell it.
(this circumtances won't happen if the reason you lost the money is the firm going into bankruptcy)
In terms of evaluating balance sheet, the two primary
questions that are being formulated are the following;
-
The assets are financially secure or stable
-
The firm has assets that are sufficient and are
short term in means of having debts that are only short and temporary.
Answer:
Common Stock $90,000 (debit)
Retained Earnings $135,000 (debit)
Revaluation Reserve $75,000 debit)
Investment in Subsidiary $300,000 (credit)
Explanation:
The Parent (Investor) acquires the Assets and Liabilities (or Equity) of the Subsidiary (Investee) at their Acquisition date fair values.
Any excess of the Purchase Consideration over the Net Assets/ Equity taken over is known as Goodwill and is shown in the Consolidated financial Statements of the Group.
The above shows the elimination journal entry that would be prepared at the acquisition date. The Revaluation reserve has been created to adjust the fair value of PPE. There is no goodwill.
