Reference no: EM131743973
Problem - Elaina co. has the following investments as of Dec. 31, 2017: Investments in common stock of Laser Co.-$1,500,000; Investments in debt securities of FourSquare Co.-$3,300,000. In both investments, the carrying value and the fair value of these two investments are the same at Dec. 31, 2017. Elaina's stock investments does not result in significant influence on the operations of Laser Co.. Elaina's debt investments is considered held-to-maturity. At Dec. 31, 2018, the shares in Laser Co. are valued at $1,100,000; the debt investment securities of FourSquare Co. are valued at $2,500,000. Assume that these investments are considered impaired.
a) Prepare the journal entries to record the impairment of these two securities at Dec. 31, 2018.
b) Assuming the fair value of Laser shares is $1,400,000 and the value of its debt investment is $2,950,000, what entries, if any, should be recorded in 2019 related to impairment?
c) Prepare the journal entries at Dec. 31, 2018, assuming these securities are not impaired (Ignore interest revenue entries).
d) Assume that the debt investment in FourSquare Co. was available-for-sale and that the expected credit loss was $90,000. Prepare the journal entry to record this I'mpairment on Dec. 31, 2018.
|
What happens to a bond current market value
: What happens to a bond's current market value, paying 5% interest, when interest rates go up
|
|
What lessons could employees learn from phil experience
: Compliance Officer and Confidentiality The employee who decides to place confidence and trust in a corporate compliance officer must understand the following.
|
|
What should the hrd employee do at the given point
: What should the HRD employee do at this point? Explain how you will implement the decision made and reflect on whether this option was the most effective.
|
|
What symbolic codes are used in american media today
: What are some symbols you've noticed in your environment and from your culture
|
|
Prepare the journal entries to record the impairment
: Elaina co. has the following investments as of Dec. 31, 2017: Prepare the journal entries to record the impairment of these two securities at Dec. 31, 2018
|
|
Options with a contract value
: You are managing a $25 million stock portfolio with a beta of 1.2, which you decide to hedge by buying index put options with a contract value of $150,000.
|
|
Calculate the npv and irr
: Annual net cash flows include depreciation expenses. Calculate the NPV and IRR for each type of truck, and which to recommend.
|
|
Determine how to improve processes and systems
: Shoot the Consultant Justin, a new consultant, was assigned to review an organization's human resources department and provide recommendations.
|
|
Discuss the progress you''ve made in academic writing
: discuss the progress you've made in academic writing, specifically - argument writing. How have you improved in developing a claim for an issue
|