1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex777 [14]
3 years ago
9

Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation

shares on June 1, 2022, for $15 million. On September 12, it purchased the C Corporation shares. Required: 1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon's 2022 pretax earnings
Business
1 answer:
mixas84 [53]3 years ago
6 0

The sale of the A Corporation stock and the subsequent purchase of the C Corporation stock on Harlon's pretax earnings results in an unrealized holding gain.

The unrealized holding gain occurs because the Harlon Corporation reinvested the sale proceeds with the purchase of C Corporation stock. While the pretax earnings will increase by the gain (difference between the sale proceeds and the investment's book value), the unrealized holding gain <em>is not taxable.</em>

Thus, the effect of the sale increases the pretax earnings in the financial statements but the purchase of another investment cancels its taxation effect for the current moment.

Learn more: brainly.com/question/24188658

You might be interested in
Describe the importance of positive communication in business.
Murljashka [212]

Answer:Another importance of effective communication in business is improved partnership. Communication is crucial when dealing with suppliers and other external business contacts. Sometimes suppliers need to be regularly updated on all the products so they can determine areas that they need to improve.

Explanation:

6 0
3 years ago
Suppose that a pharmaceutical company wants to grow in size but is constrained in the short run by its production capacity. What
maks197457 [2]

Answer:

hi

Explanation:

7 0
3 years ago
A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the
Oxana [17]

Answer:

A. $50 increase

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

The change in net cash provided by operation is shown below:

= Investment made - purchased goods on credit - paid amount

= $300 - $150 - $100

= $50

4 0
3 years ago
Discuss motown production techniques as applied to motown girl groups of the 1960s, including specific artists and performance/n
Liono4ka [1.6K]

Motown records was created by Berry Gordy Jr. who is an American record executive, record producer, song writer, film producer and television producer.  The Motown record  company played a very important role in the racial integration of popular music as an African-American owned label that got crossover success. Motown was the most successful record label of soul music. Motown producers believed "resolutely" in KISS principle (keep it simple stupid) and they used Pop production techniques such as the use of  orchestral string sections, charted horn sections, and carefully arranged support vocals. Complex arrangements and melismatic vocal riffs were avoided.

8 0
4 years ago
______________ specifies sales revenues and selling distribution and marketing costs.
frez [133]
To answer the question above as the which specifies the sales revenue and selling distribution and marketing costs is letter B, Sales budget. The answer lies in the question itself. Sales revenues,distribution and the marketing cost are all related to the sales budget. Sales budget controls the expenditure or resources related to sales.
3 0
3 years ago
Other questions:
  • Enterprise car rental agency differentiates itself from other similar agencies by providing a delivery service. This delivery se
    9·1 answer
  • "what creates the basis for a simpler compensation system that de-emphasizes structure and places greater importance on flexible
    11·1 answer
  • A high level of interest and attention is sometimes referred to as
    5·1 answer
  • On average, what percentage of the GDP does the U.S. government collect through taxes?
    13·1 answer
  • A company is analyzing its​ month-end results by comparing it to both static and flexible budgets. During the​ month, the actual
    5·1 answer
  • Greg’s Golf Carts produces two models: Model 24 has sales of 500 units with a contribution margin of $40 each; Model 26 has sale
    14·1 answer
  • Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The va
    14·1 answer
  • The term "marginal investor" means an investor who is active in the market and would tend to buy a stock if its price fell and s
    5·1 answer
  • Companies that show profits on the income statement will always show positive cash flows from operating activities.
    7·1 answer
  • Essence of Skunk Fragrances Calculate the average collection period. (Do not round intermediate calculations and round your answ
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!