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dlinn [17]
4 years ago
12

Smith buys and sells equity securities. On December 15, 2021, Smith purchased $522,000 of Jones shares and elected the fair valu

e option to account for the Jones investment. As of December 31, 2021, the Jones shares had a fair value of $578,000. In the 2021 financial statements, Smith will report (ignore taxes):
Business
1 answer:
Fofino [41]4 years ago
4 0

Answer:

Smith will report an investment income of $56,000 in its income statement.

Explanation:

Based on the information given we were told that Smith made a purchased of the amount of $522,000 of Jones shares in which as of December 31, 2021, the Jones shares also had a fair value of the amount of $578,000 this means that Smith will report an investment income of $56,000 ($578,000-$522,000) in its income statement.

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juin [17]

Answer:

Unilateral Mistake

Explanation:

In a contract between two parties, a unilateral mistake occurs when one party in the contract makes a mistake regarding cost, the definition of a term or word, or measurement. The outcome of such a mistake is usually a conflict between the two parties. To resolve this problem, the contract could be canceled (if the other party becomes aware of the mistake), or reformed (if only one party is aware of the mistake).  

When Mark made a mistake about the cost of building the house for David, he made a unilateral mistake as the mistake was committed by him alone. David's refusal of the amended cost is resulting in a conflict that would likely lead to the cancellation of the contract.  

6 0
3 years ago
Jerry lives in New Mexico and makes $52,000 a year. If the median annual income in New Mexico is $53,731 and the median annual i
daser333 [38]
Yes, Jerry is likely to qualify, since his yearly income is below the median annual income of New Mexico.
4 0
4 years ago
Read 2 more answers
Which of the following is NOT a primary activity of the Value Chain model? a. Inbound Logistics b. Operations c. Outbound Logist
vaieri [72.5K]

Answer:

The correct option is d. purchasing

Explanation:

Value chain Model : The value chain model is that model which is used to add the values to the organization.

It comprises of two activities:

1. Primary activities : The primary activities are those activities which includes day to day activities or that activities through which the product can delivered to the final consumer.

It includes inbound logistics, outbound logistics, operations, marketing & sales, and services.

2. Support activities : The activities which support primary activities is called support activities. It includes firm infrastructure, human resource management, technology management, and procurement.

By giving above explanation, the purchasing is not a primary activity of the value chain model

Hence, the correct option is d. purchasing

4 0
3 years ago
When a mortgage loan has been paid in full, it is important for the borrower to be sure that?
Olenka [21]
Of course it is it would be bad if something went wrong and the borrower had to repay it.
7 0
4 years ago
You are considering the purchase of a common stock that paid a dividend of $2.00 yesterday. You expect this stock to have a grow
Blababa [14]

Answer:

D) $62.57

Explanation:

One should be willing to pay the intrinsic value or fair price, computed using the present value of dividends

Intrinsic value or fair Price = 2.3/1.14 + 2.645/1.14^2 + 3.04/1.14^3 + (3.04*(1+10%)/(14%-10%))/1.14^3

                                           = $62.57

Therefore, You should be willing to pay $62.57 for this stock.

3 0
3 years ago
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