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ladessa [460]
3 years ago
7

Valet Corporation began operations in 2021. An analysis of Valet's debt securities portfolio acquired in 2021 shows the followin

g totals at December 31, 2021 for trading and available-for-sale debt securities:
Trading Available-for-Sale
Securities Securities
Aggregate cost $180,000 $220,000
Aggregate fair value 160,000 190,000
What amount should Valet report in its 2021 income statement for unrealized holding loss?
Business
1 answer:
Alexxandr [17]3 years ago
3 0

Answer:

$20,000

Explanation:

Calculation for What amount should Valet report in its 2021 income statement for unrealized holding loss

Using this formula

2021 income statement for unrealized holding loss=Aggregate cost -Aggregate Fair value

Let plug in the formula

2021 income statement for unrealized holding loss=$ 180,000-$ 160,000

2021 income statement for unrealized holding loss=$20,000

Therefore the amount that Valet should report in its 2021 income statement for unrealized holding loss is $20,000

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Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also i
Mnenie [13.5K]

Answer:

1. $46,000

2.$46,000

Explanation:

According to the scenario, computation of the given data are as follows,

Inventory price = 230,000 pesos

1. Consolidated balance sheet amount = Inventory price × Rate on November 1, 2017

= 230,000 × $0.20

= $46,000

2. Consolidated statement cost of goods sold for the year ending December 31, 2018  = Inventory price × Rate on November 1, 2017

= 230,000 × $0.20

= $46,000

3 0
3 years ago
Matt Enterprises issued $200,000 of ten percent, five-year bonds with interest payable semiannually. Determine the issue price i
Julli [10]

Answer:

$200,000 ; $234,120.81  ; and $185,279.83

Explanation:

For computing the issue price we need to applied the future value which is shown in the attachment below:

a. Given that,  

Future value = $200,000

Rate of interest = 10%  ÷ 2 = 5%

NPER = 5  years  × 2 = 10 years

PMT = $200,000 × 10%   ÷ 2 = $10,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, applying the formula the issued price is $200,000

b. Given that,  

Future value = $200,000

Rate of interest = 6%  ÷ 2 = 3%

NPER = 5  years  × 2 = 10 years

PMT = $200,000 × 10%   ÷ 2 = $10,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, applying the formula the issued price is $234,120.81

c. Given that,  

Future value = $200,000

Rate of interest = 12%  ÷ 2 = 6%

NPER = 5  years  × 2 = 10 years

PMT = $200,000 × 10%   ÷ 2 = $10,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, applying the formula the issued price is $185,279.83

5 0
3 years ago
What is the name of the document that companies use to report quarterly financial results?.
Fynjy0 [20]

Answer:

 Form 10-Q

Explanation:

5 0
2 years ago
Following are summary financial statement data for Nordstrom Inc. for fiscal years ended 2014 through 2016.
Gwar [14]

Answer:

Nordstrom Inc.

a. Return on Assets (ROA) for the fiscal years ended 2019 and 2018:

= Net income/Total Assets

2019 = 7.15%

2018 = 5.39%

b. Profit Margin (PM) for fiscal years ended 2019 and 2018:

= Net income/Sales * 100

2019 = 3.56%

2018 = 2.82%

c. Asset Turnover (AT) for fiscal years ended 2019 and 2018:

= Total Sales / Average Assets

2019 = 1.98x

2018 = 1.94x

Explanation:

a) Data and Calculations:

$ thousands       2019       2018        2017

Sales              $15,860   $15,478   $14,757

Net income          564          437         354

Total assets      7,886         8,115      7,858

Average assets 8,001        7,986

Equity                   873          977          870

a. Return on Assets (ROA) for the fiscal years ended 2019 and 2018:

= Net income/Total Assets

2019 = $564/$7,886 * 100 = 7.15%

2018 = $437/$8,115 * 100 = 5.39%

b. Profit Margin (PM) for fiscal years ended 2019 and 2018:

= Net income/Sales * 100

2019 = $564/$15,860 * 100 = 3.56%

2018 = $437/$15,478 * 100 = 2.82%

c. Asset Turnover (AT) for fiscal years ended 2019 and 2018:

= Total Sales to Average Assets

2019 = $15,860/$8,001 = 1.98x

2018 = $15,478/$7,986 = 1.94x

b) Return on Assets (ROA) indicates the relative profitability of assets, which indicates the ability of management to generate earnings from the entity's assets.

The Profit Margin (PM) measures the degree to which a dollar-sales is turned into profit.

Asset Turnover (AT) measures the efficiency achieved by the entity in generating sales from its assets.

7 0
3 years ago
Which depreciation method does not use an asset's residual value to calculate depreciation expense?
ira [324]

Declining-balance depreciation method does not use an asset's residual value to calculate depreciation expense.

<h3>What is depreciation?</h3>
  • In accountancy, depreciation refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used.
  • Depreciation is thus the decrease in the value of assets and the method used to reallocate, or "write down" the cost of a tangible asset (such as equipment) over its useful life span.
<h3>What does accounting depreciation mean?</h3>
  • During the asset's anticipated useful life, depreciation is allocated in order to charge a fair percentage of the depreciable amount in each accounting period.
  • Amortization of assets with predetermined useful lives is included in depreciation.

Learn more about depreciation here:

brainly.com/question/15085226

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3 0
2 years ago
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