Answer:
a. The company will recognize an unrealized holding loss.
Explanation:
An unrealised loss is defined as a decline in an asset theta is held by a business. The asset can be held until it's value appreciates to cancel out the unrealised loss. If such an asset is sold, it will now be a realised loss.
The unrealized loss of (800,000-750,000= $50,000) will be recorded in the accumulated other comprehensive income account under the equity section of the balance sheet.
Unrealised loss is also called paper loss because the loss is only recorded on paper and is not yet realised.
Answer:
Explanation:
Amount of Bolton Company inventory = 38,972
Calculations are attached
1. Find net realizable value, which is selling price - cost of disposal;
2. Then subtract normal profit from net realizable value = [g];
3. Find designated market value by choosing the middle value of cost to replace, net realizable value and [g];
4. Choose lowest between designated market value and selling price;
5. Multiply by quantity.
Answer:
D. of liquidity
Explanation:
The current assets will be listed according to how close are to be converted to cash. and liquidity is the property of an asset to be converted into cash. the land have less liquidity than an account recievable, as the land required a lot of effort an time to be sold, while the account receivable is a know price with a certain colection date.
With the liquidity in mind, the current assets should be listed as follow:
first we list cash, nothing is more liquid than cash.
then we list cash equivalent like marketable securities
the nwe list account receivable
and inventory
why the account receivable have more liquid than inventory?
because the account receivable needthe effort to be colelcted.
while the inventory needs both, the effort to sale the goods and then collected.
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