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Step2247 [10]
2 years ago
5

On January 10, Year 1, Wayne, Inc., purchased 5,000 of Jason bonds at $60 par per bond. The purchase is a long-term investment a

nd is appropriately reflected in Wayne's balance sheet in an available-for-sale securities portfolio at December 31, Year 1. The fair value of Wayne's investment in Jason's bonds are as follows: Fair value Date Per bond Total December 15, Year 1 $47 $235,000 December 31, Year 1 46 230,000 On December 15, Year 1, Wayne determined that the decline in the fair value was attributed to credit loss. What amount should Wayne record as a loss in its income statement for the year ended December 31, Year 1?
Business
1 answer:
Phantasy [73]2 years ago
4 0

Answer:

$70,000 loss

Explanation:

the carrying value at December 31, Year 1 = 5,000 shares x $60 per share = $300,000

the fair market value at December 31, Year 1 = 5,000 shares x $46 per share = $230,000

realized loss/gain = fair market value - carrying value = $230,000 - $300,000 = -$70,000 or $70,000 loss

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The price of Shoes in Japan is Yen 1000. When exchange rate is Yen=$1/100, the Quantity of Imports of Shoes from Japan is 150000
kow [346]

Answer:

- 0.67 (Absolute value = 0.67)

Explanation:

% Change in demand for imports:

= (200,000 ÷ 150,000) - 1

= 1.3333 - 1

= 0.3333

= 33%

% Change in price of imports:

= [(1/200) ÷ (1/100)] - 1

= (100 ÷ 200) - 1

= 0.5 - 1

= - 0.5

= - 50%

Elasticity of imports:

= % Change in demand for imports ÷ % Change in price of imports (exchange rate)

= 33% ÷ (- 50%)

= - 0.67 (Absolute value = 0.67)

4 0
2 years ago
A(n) ______ is any business that has productive activities in two or more countries.
Anastasy [175]

Answer:

Multinational enterprise.

Explanation:

A multinational enterprise is any business that has productive activities in two or more countries.

Generally, a multinational enterprise (MNE) has subsidiaries in other countries and as such derives a high amount of revenue outside its home country by providing goods and services that meets the need of customers through the use of advanced technology.  

For a multinational enterprise (MNE), they have a central corporate facility but their products are not coordinated because their respective foreign markets offer unique products and services.

Some examples of a multinational enterprise (MNE) are Amazon, BNP Paribas, Alcatel-Lucent, Apple, Chevron, Casio, Disney, etc.

5 0
2 years ago
George has been looking into buying a bond for his portfolio. His greatest investment objective is total return. Which of the fo
Elanso [62]

Answer:

A. A bond which has a price of $850, a Yield to Maturity of 4%, and a Current Yield of 3.75%

Explanation:

Since George is focussed on achieving a high total return for his portfolio, he will consider adding a bond whose yield to maturity (YTM) is the highest. Among these options, option A would be ideal since it has a 4% YTM; he would probably not consider if the price of $850 is high or not . This is the annual interest rate paid on the bond investment.

5 0
2 years ago
When a furniture manufacturer buys the lumber and other raw materials, machines and equipment, manufacturing supplies, and offic
boyakko [2]

Answer:

Procurement

Explanation:

The process of "procurement" refers to purchasing the goods and services that will be used in the company's business. This gives the company the ability to choose where and from whom they will buy their supplies. This allows "fairness" and promotes<em> competition. </em>

The act of buying lumber and raw materials by the furniture manufacturer, including its machines, equipment, manufacturing supplies and office supplies belong to the process of procurement. Companies set their <u>own procurement policies</u> in order to ensure that<em> it aligns with the interest of the public.</em>

So, this explains the answer.

6 0
2 years ago
A consulting firm has a predetermined overhead rate of $120 per labor hour. The Smith job required 5 hours to compete. The overh
andriy [413]

Answer:

overhead cost = $600

Explanation:

given data

overhead rate = $120 per labor hour

time required = 5 hours

to find out

overhead cost

solution

we get here overhead cost  that is express as

overhead cost  = overhead rate ×  time required ..............1

put here value and we get

overhead cost = $120 × 5

overhead cost = $600

6 0
2 years ago
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