User Account

All Pages

What is the effect of the sale of the a corporation shares

Assignment Help Accounting Basics
Reference no: EM13996175

The investments of Harlon Enterprises included the following cost and fair value amounts:
Harlon Enterprises sold its holdings of A Corporation shares on June 1, 2012, for $15 million. On September 12, it purchased the C Corporation shares.

Required:

1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon's 2012 pretax earnings?

2. At what amount should Harlon's securities available-for-sale portfolio be reported in its 2012 balance sheet? What adjusting entry is needed to accomplish this? What is the effect of the adjustment on Harlon's 2012 pretax earnings?

Reference no: EM13996175

Questions Cloud

Effects on relevant financial variables : Suppose that the Fed intervenes in the foreign exchange market to lower the value of the dollar. Assuming that domestic and foreign assets are perfect substitutes, use T accounts of the Fed to show how an unsterilized foreign-exchange intervention di..
How much will have for a mortgage down payment : You are planning to purchase a house in 5 years and want to save for a down payment. If you deposit $5,000 each year into an account earning 3% interest, how much will have for a mortgage down payment?
What is the chemical structure for benzene : What is the chemical structure for benzene? A re there any other naming things that i should remember for this class.
The debt capacity of the governmental entity is determined : Explain how the debt capacity of the governmental entity is determined. Evaluate the effect of refunding or reorganizing existing debt obligations. Analyze various funding alternatives that can be used to support debt obligations.
What is the effect of the sale of the a corporation shares : What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon's 2012 pretax earnings?
Social security and medicare for the elderly : Social Security Do you think the federal government should increase spending on Social Security and Medicare for the elderly? If not, how should the elderly fund retirement and medical costs? Provide research support for your positions.
Important part of studying for organic chemistry 2 : What is the most important part of studying for organic chemistry 2?
State government levy tariffs on imports : Why not have State governments levy tariffs on imports, or tax other states' products. Would this be a sensible way to raise revenues? What are the advantages/disadvantages? Provide research support for your positions
What is the associated average total annual cost : Demand for phones at an on-line retailer is 5,000 per month. The annual inventory carrying rate for the retailer is 25 percent, and the retailer incurs a fixed order cost of $15,000 for each order placed with the supplier in Taiwan. How many phones s..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Active business income

In the current year, Spring Corporation, a closely held personal service corporation, has $120,000 of passive losses, $70,000 of active business income, and $50,000 of portfolio income. How much of the passive loss may Spring deduct in the current..

  Difference between a permutation and a combination

Compare and contrast permutations and distinguishable permutations. Provide a formula for each. State the fundamental counting principle and explain it in your own words.

  How would you explain the difference between financial and

how would you explain the difference between financial and managerial accounting? explain the distinguishing features

  Determine amount the college must obtain from other sources

Christmas for the Needy is a civic organization that provides Christmas presents to disadvantaged children. The annual costs of this activity are $5,000, plus $10 per present. Determine the number of presents the organization can provide with $20,..

  Melissa recently paid 775 for round-trip airfare to san

melissa recently paid 775 for round-trip airfare to san francisco to attend a business conference for three days.

  Prepare a production budget for january

Prepare a production budget for January through June of 2012. Prepare a material purchases budget for the same period, assuming that each pound of raw material costs $ 22.

  Basis of the adjustment data in the work sheet

Prepare an income statement, a statement of owner's equity, and a balance sheet and on the basis of the adjustment data in the work sheet, journalize the adjusting entries.

  Calculate the interest revenue from this transaction

What interest rate should be used to calculate the interest revenue from this transaction for the years ended December 31, 2011 and 2012, respectively?

  Method of process costing system

How does the FIFO method differ from the average costing method of process costing system? Provide an example of FIFO and explain.

  Assume research in motion invested 834 million to expand

assume research in motion invested 834 million to expand its manufacturing capacity. assume that these assets have a

  An accounting system that provides information that

an accounting system that provides information that management can use to evaluate the profitability andor cost

  Prepare a flowchart which demonstrates how accural

prepare a flowchart which demonstrates how accural accounting and cash flows are linked for a merchandise sale. analyze

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd