Available-for-sale (AFS) investments that are expected to be held longer than a year are reported as ________
A) equity
B) current assets
C) long-term assets
D) either current assets or long-term assets
C
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Flounder Inc Use the information provided for Flounder Inc to answer the question(s) using the effective interest method. On January 1, 2012, Flounder Inc issued $800,000, 10-year, 9% bonds for $662,356. The bonds pay interest on June 30 and December 31. The market rate is 12%. Refer to the information provided for Flounder Inc The interest expense on the bonds at June 30, 2012, is:
A) $79,482.77. B) $36,000.00. C) $39,741.38. D) $29,806.04.
A merger involves the legal combination of one or more corporations in such a way that only one of the corporations continues to exist
Indicate whether the statement is true or false
Michigan-based Leo Corporation acquired 100 percent of the common stock of a British company on January 1, 20X8, for $1,100,000. The British subsidiary's net assets amounted to 500,000 pounds on the date of acquisition. On January 1, 20X8, the book values of its identifiable assets and liabilities approximated their fair values. As a result of an analysis of functional currency indicators, Leo determined that the British pound was the functional currency. On December 31, 20X8, the British subsidiary's adjusted trial balance, translated into U.S. dollars, contained $17,000 more debits than credits. The British subsidiary reported income of 33,000 pounds for 20X8 and paid a cash dividend of 8,000 pounds on October 25, 20X8. Included on the British subsidiary's income statement was
depreciation expense of 3,500 pounds. Leo uses the fully adjusted equity method of accounting for its investment in the British subsidiary and determined that goodwill in the first year had an impairment loss of 25 percent of its initial amount. Exchange rates at various dates during 20X8 follow: January 11£=$2.10 October 251£= 2.25 December 311£= 2.20 Average for 20X81£= 2.21 Based on the preceding information, the receipt of the dividend will result in a credit to the investment account for: A. $16,800 B. $17,600 C. $18,000 D. $17,680
States of nature should be defined so that one and only one will actually occur
Indicate whether the statement is true or false