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maks197457 [2]
2 years ago
10

A company buys ten shares of securities at $1,000 each on January 15, year 1. The securities are classified as available-for-sal

e. The fair value of the securities increases to $1,250 per share as of December 31, year 1. The company does not elect to use the fair value option for reporting available-for-sale securities. Assume no dividends are paid and that the company has a 30% tax rate. What is the amount of the holding gain arising during the period that is classified in other comprehensive income for the period ending December 31, year 1?
A) $0
B) $1,750
C) $2,500
D) $7,500
Business
1 answer:
Anit [1.1K]2 years ago
8 0

Answer:

A) $0

Explanation:

Company does not elect to use the fair value option for reporting available-for-sale securities, so they are not required to report any gain or loss because they are report the securities on their initial purchase value or book value. GAAP required eligible items that are elected to use the fair value option for reporting only to report gain / loss in other comprehensive income.

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The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by _
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Answer:

The correct answer is letter "A": the social business environment.

Explanation:

The social business environment includes the society inhabitants' believes, customs, and lifestyles. It determines how businesses are handled in different regions worldwide. When it comes to low costs of labor, it might be beneficial for some companies that can open subsidiaries there to lower production costs but it also represents a struggle for some other firms because their products seem unreachable because of the low wages people earn.

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The balance of Stephanie's average balance checking account at the beginning of last cycle was $200, and the only transaction fo
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2 years ago
What is an appropriate sign-off for this e-mail message? a.The writer’s first name alone is sufficient as long as it is followed
Kisachek [45]

Answer: Incomplete please attach a picture of this email so we can identify the appropriate sign off. Thank you

Explanation:

6 0
2 years ago
Read 2 more answers
Futura Company purchases the 40,000 starters that it installs in its standard line of farm tractors from a supplier for the pric
uysha [10]

Answer:

By producing the starters the company will save $20,000 per year.

Explanation:

                       production costs

direct materials                                      $3.10 per unit

direct labor                                             $2.70 per unit

supervision                                            $60,000

depreciation                                          $40,000

variable manufacturing overhead        $0.60 per unit

rent                                                         $12,000

total production cost                             $9.20 per unit

The engineer is wrong because he is considering fixed costs like depreciation and rent that should not be included because they are independent on whether this project is approved or not. Once you take away depreciation and rent, the cost per unit will fall by $1.30 [= ($40,000 + $12,000) / 40,000 units].

Since the production cost = $9.20 - $1.30 = $7.90, which is lower than $8.40 which is the purchase cost, the company should start producing the starters at least until its sales bonce back.

By producing the starters the company will save ($8.40 - $7.90) x 40,000 units = $20,000 per year

5 0
2 years ago
Select the correct text in the passage. Danny is starting out a new job at an IT firm. Which of the following practices are unet
expeople1 [14]

Answer:

Alex is not at his seat and Danny urgently requires some documents, so he logs in to Alex's computer and mails the file to himself.

Explanation:

Logging in to another employee's system without his/her consent nor informing the boss of the firm is an unethical business practice.

Alex might have some vital and private information or data on his system in which he alone must access it.

8 0
2 years ago
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