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ivann1987 [24]
2 years ago
6

Bella Company purchased debt securities with a face amount of $500,000 for $480,000 and classifies them as trading securities. D

uring the first year, the company amortized $2,000 of the associated discount. At the end of the period, the fair value is $504,000. Bella should recognize a fair value adjustment of
Business
1 answer:
alexdok [17]2 years ago
3 0

Answer:

$22,000

Explanation:

Given:

Face amount = $500,000

Amount paid = $480,000

Discount amount = $2,000

New Face amount = $504,000

Find:

Fair value adjustment

Computation:

Fair value adjustment = New Face amount - Amount paid - Discount amount

Fair value adjustment = $504,000 - $480,000 - $2,000

Fair value adjustment = $22,000

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Despite tuition skyrocketing, a college education is still valuable. Recent calculations by the Federal Reserve Bank in San Fran
gladu [14]

Answer:

s = $13,014.22

Explanation:

Sample values: $40,632, $35,554, $42,192, $33,432, $69,479 and $43,589

Sample size = 6

The standard deviation of a sample (s) is given by:

s=\sqrt{\frac{\sum(x_i-X)^2}{n-1}}

Where X is the sample mean, n is the sample size, and xi is each value in the sample.

The sample mean is given by:

X=\frac{\$40,632 +\$35,554+\$42,192 +\$33,432 +\$69,479 +\$43,589}{6} \\X=\$44,146.33

The standard deviation is:

s=\sqrt{\frac{\sum(x_i-\$44,146.33)^2}{6-1}}\\s=\$13,014.22

5 0
2 years ago
A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage
s344n2d4d5 [400]

Answer: Segmentation by usage

Explanation: Segmentation by usage splits customers according to how often they use a product. Using segmentation by usage, customers can be classified into non - users, who don't use the product at all, light and medium users, who can range from little usage of the product to average use of the product, and heavy users, who mostly use these products.

From thr first paragraph it is clear that usage segmentation is used to separate the user's into different classes based on their usage, and identify which class to target when it comes to sales. At Estelle Cosmetics Company, it was deduced that of this company's total sales, less than 7% of this market are heavy users. These users purchase nearly 71% of the company's products. This company will probably focus their marketing efforts on the heavy users, as they contribute to the majority of sales within their company.

7 0
2 years ago
Before your first day of work, it is a good idea to _____.
liraira [26]
Before your first day of work, it is a good idea to : C. Drive to work to see how long it takes

One of the most important thing to do in your first day of work is to display a good first impression, and coming late to your work at the first day will destroy your boss' first impression about you, in order to avoid that, you should check out the amount of time needed to get to work
3 0
2 years ago
Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of the net assets purchased equals $
Fed [463]

Answer:

Explanation:

Goodwill is defined as the excess in amount of the purchase price of a company over the fair value at acquisition.It is intangible in nature , meaning it can not be physically separated from the other assets. Example are patent , brand name , good employee relation.

1.

Goodwill calculation

Purchase price - $2,500,000

Fair value -          $1,800,000

Goodwill -               $700,000        

2.

No

Under the IAS 36, impairment of assets , goodwill is not amortized but annually tested for impairment as amortization is applicable to intangible assets with a definite useful life while intangible assets with indefinite useful life are annually tested for impairment to evaluate a loss in value experienced.

3

No

Under IAS 38 , Internally generated goodwill are not recognized as no related cost is incurred towards achieving a future benefit

7 0
2 years ago
Bob Neff, owner of an automotive dealership, pays one of his salesmen, Mike, a $1,300 draw per week plus 6% on all commission sa
Dmitriy789 [7]
The correct answer is 11 1/3. Hope this helps.<span>
The mixed number would be 11 1/3. This is because 3 goes into 34 11 times. 3 multiplied by 11 would equal 33. You have 1/3 left over after , so you get 1/3.</span>
5 0
2 years ago
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