Investment : The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment. Other-than-temporary (OTT) impairment : When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment. Fair value : Fair value is the price at which, both seller and buyer agree to exchange the asset. So, fair value is the selling price to the seller and the purchase price for the buyer. Net income: Net income is the excess amount of revenuewhich is arises after deducting all the expenses of a company. In simply, it is the difference between total revenue and total expenses of the company. Other Comprehensive income : OCI includes all financial items which result in changes in the stockholders’ equity , other than stock investments and dividends. To Journalize: The entries to account for fair value changes during 2018 and 2019.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12.18P

To determine

Investment: The act of allocating money to buy a monetary asset, in order to generate wealth in the future is referred to as investment.

Other-than-temporary (OTT) impairment: When the market value of an investment declines to a value lower than its cost, it is referred to as OTT impairment.

Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So, fair value is the selling price to the seller and the purchase price for the buyer.

Net income: Net income is the excess amount of revenuewhich is arises after deducting all the expenses of a company. In simply, it is the difference between total revenue and total expenses of the company.

Other Comprehensive income: OCI includes all financial items which result in changes in the stockholders’ equity, other than stock investments and dividends.

To Journalize: The entries to account for fair value changes during 2018 and 2019.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Compute 007s gross profit percentage and rate of inventory turnover for 2016

Headland Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed. Earnings to Weekly Vacation Pay to Be Employee July 31 Pay Received in August Mark Hamill $5,180 $280 Karen Robbins 4,480 230 $460 Brent Kirk 3,680 190 380 Alec Guinness 8,380 330 Ken Sprouse 8,980 410 820 Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $142,800 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee's wages in excess of $142,800. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the…

The direct materials variance is computed when the materials are purchased