Answer:
When issuing a check to a creditor as is being done here, you need to debit the creditors account (Accounts Payable) to show that you are paying off the debt.
You also need to credit cash because a credit will show that cash was used to pay for something and so has reduced.
Date Account Title Debit Credit
XX-XX-XXX Accounts Payable - Saurya Stores Rs. 39,000
Cash Rs. 39,000
What is the difference between economic profit and producer​ surplus? A. Economic profit includes opportunity costs but producer surplus does not. B. Producer surplus includes variable costs but economic profit does not. C. Economic profit includes fixed costs but producer surplus does not. D. Economic profit includes marginal costs but producer surplus does not. E. Economic profit includes government taxes but producer surplus does not.
Answer:
c
Explanation:
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
Economic cost is accounting profit less implicit cost
Accounting profit= total revenue - explicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Agent Thurmond has a listing that is in a flood hazard area that floods often and has been deemed ineligible for flood insurance.That condition would make the property ineligible for typical federally-related first mortgage financing. Agent Thurmond is representing only the seller in this transaction. Agent Thurmond has received an offer from a potential buyer that plans to pay cash and would not be required to have flood insurance because he is not getting a mortgage. Agent Thurmond must:
Answer: disclose the material fact about the flood hazard to the buyer.
Explanation:
Based on the information given in the question, Agent Thurmond must disclose the material fact about the flood hazard to the buyer.
It is advisable and ethical for Agent Thurmond to tell the buyer about the issue with regards to the flooding. This is appropriate in order to avert any controversy or case that may eventually result in the future when the buyer becomes aware of the flood hazard.
Hewlett-Packard founders David Packard and William Hewlett strived to create a close-knit organizational culture that gave a lot of responsibility to employees and fostered innovation within the company. Individual responsibility and the importance of innovation are Group of answer choices diverse perspectives. focused values. enacted values. espoused values. analytics.
Answer:
Espoused values
Explanation:
From the question we are informed
Hewlett-Packard founders David Packard and William Hewlett who strived to create a close-knit organizational culture that gave a lot of responsibility to employees and fostered innovation within the company. Individual responsibility and the importance of innovation are Espoused values.
Espoused values can be regarded as values which is been expressed on behalf of a particular organization, it could also be values that is been
attributed by senior managers of an organization in public statements
to that particular organization. Theses statement could be annual reports of the firm. These values are practical results of values been espoused through members of an organization.
To limit sexual harassment in the workplace, managers should strive to ________. recognize that sexual harassment occurs in most work environments provide general guidelines about sexual harassment, but avoid detailed explanations instantly terminate anyone accused of sexual harassment reassure employees that they will not encounter retaliation if they file a complaint investigate only the most serious complaints
Answer:
reassure employees that they will not encounter retaliation if they file a complaint.
Explanation:
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information.
On a related note, managers are required to engage their staff members (entire workforce) in the most efficient and effective manner.
To limit sexual harassment in the workplace, managers should strive to reassure employees that they will not encounter retaliation if they file a complaint.
The Fed can reduce the federal funds rate by a. decreasing the money supply. To decrease the money supply it could buy bonds. b. increasing the money supply. To increase the money supply it could sell bonds. c. increasing the money supply. To increase the money supply it could buy bonds. d. decreasing the money supply. To decrease the money supply it could sell bonds.
Answer:
c. increasing the money supply. To increase the money supply it could buy bonds.
Explanation:
In the case when fed wants to decreased the rate related to the federal funds so here the money supply should be increased also in order to increased the money supply we need to purchased the bonds
Moreover, the increase in money supply should be equivalent to the reduction in the interest rate
Therefore the option c is correct
Over the past 50 years, many countries have experienced an annual growth rate in real GDP per capita greater than that of the United States. Some examples are China, Japan, South Korea, and Taiwan. Does that mean the United States is regressing relative to other countries? Does that mean these countries will eventually overtake the United States in terms of the growth rate of real GDP per capita? Explain.
Answer:
No, the U.S. is not regressing
No, it will not take over the U.S.
Explanation:
No, the United States is not regressing because the poor country can boost their growth rate by taking the advanced technology from the developed countries like the United States. So it is easy to poor countries to increase their growth rate but for the developed nations who already using the advance technology is difficult to increase growth rate.
No, the country will not take over the United States because the percentage increase in GDP can be greater but actual value of GDP will be very high in developed nations.
Organizations must continually train their employees because: a. the importance of satisfying certification requirements has increased. b. employees' productivity decreases with time. c. the legislation on providing ethnocentric training to workers has become stringent. d. organizational training has a positive relationship with employee turnover rates.
Answer:
b. employees' productivity decreases with time
Explanation:
In the case when the organization trained to the employees on the continuity basis so this can be done because the productivity of an employees could be decreased as per the time
So in order not to decreased the productivity so the organization trained their employees on continuity basis
Therefore the option b is correct
Bonita Real Estate received a check for $28440 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $28440. Financial statements will be prepared on July 31. Bonita Real Estate should make the following adjusting entry on July 31:
A. Debit Cash, $28440; Credit Rent Revenue, $28440.
B. Debit Rent Revenue, $4740; Credit Unearned Rent Revenue, $4740.
C. Debit Unearned Rent Revenue, $4740; Credit Rent Revenue, $4740.
D. Debit Unearned Rent Revenue, $28440; Credit Rent Revenue, $28440.
Answer:
C. Debit Unearned Rent Revenue, $4740; Credit Rent Revenue, $4740.
Explanation:
When money is collected in advance for service yet to be rendered, we credit unearned revenue and debit cash. As the service becomes rendered, we debit unearned revenue with the amount earned and credit revenue.
Since the money was received on 1 July and the Financial statements will be prepared on July 31, by the date of the preparation, the company has earned 1 month rent. This rent is equivalent to
= $28440/6
= $4760
Hence the adjusting entry on July 31 will be
C. Debit Unearned Rent Revenue, $4740; Credit Rent Revenue, $4740.
When consumers and businesses have greater confidence that they will be able to repay in the future, _______________________. Question 5 options: the quantity demanded of financial capital at any given interest rate will remain unchanged. the quantity demanded of financial capital at any given interest rate will shift to the left. the quantity demanded of financial capital at any given interest rate will shift to the right. the quantity demanded of financial capital at any given interest rate will achieve equilibrium.
When consumers and businesses have greater confidence that they will be able to repay in the future, the quantity demanded of financial capital at any given interest rate will shift to the right.
The Human Resources department is happy to announce a career development workshop the workshop will be led by Joseph Pelletier. Joseph has 20 years of experience in career development training he will help you gain a clearer understanding of your career goals and will also discuss tools to work toward your career goals. The workshop will take place November 10 and 11 in the conference room nearest the parking lot on the third floor of the building. From 9:30 a.m. in the morning to 5:30 p.m. in the evening unless it goes longer or ends more quickly than expected. There will be coffee and tea in the morning, and then there will be lunch provided in the afternoon. Respond to this e-mail to sign up if you are interested in this career development workshop led by Joseph Pelletier. Because there are only 40 spots. How could you improve this message
Answer:
Correct run-on sentences
Reduce sentence lengths
Correct fragments
Explanation:
The Human Resources department is happy to announce a career development workshop the workshop will be led by Joseph Pelletier. Joseph has 20 years of experience in career development training he will help you gain a clearer understanding of your career goals and will also discuss tools to work toward your career goals. The workshop will take place November 10 and 11 in the conference room nearest the parking lot on the third floor of the building. From 9:30 a.m. in the morning to 5:30 p.m. in the evening unless it goes longer or ends more quickly than expected. There will be coffee and tea in the morning, and then there will be lunch provided in the afternoon. Respond to this e-mail to sign up if you are interested in this career development workshop led by Joseph Pelletier. Because there are only 40 spots. How could you improve this message.
Correct run-on sentences.
Reduce sentence lengths.
Correct fragments.
Brian owns a parcel of land that is encumbered by a mortgage held by the First International Bank. Brian agrees to sell the land to Piercel for $350,000. Brian and Pierce together go to the First International Bank to discuss the sale and purchase with the banker. Brian, Pierce, and the banker sign an agreement stating that Pierce will assume the mortgage and that Brian will be discharged from all further liability on the mortgage. In this case:
a, the bank can collect from Brian if Plerce defaults.
b. the bank is a third party donee beneficiary,
c. the agreement among the three is a novation.
d. Brian is a third party beneficiary of the agreement between Pierce and the bank.
Answer: c. the agreement among the three is a novation.
Explanation:
A novation refers to a situation whereby a party to a contract is replaced by another party. That means that the duties and benefits of the party being replaced will be passed on to the new party to the contract.
In this scenario, Brian was replaced in the mortgage contract by Pierce and Pierce assumed all liability related to the land in question. This is therefore a novation.
How does asset utilization ratios impact financial decision making?
Answer:
Answer to the following question is as follows;
Explanation:
The asset utilisation ratio determines how much income a firm earns for every dollar of assets it possesses. An increase in asset utilisation indicates that the firm is getting more value out of each dollar of its assets. This metric is commonly used to compare the effectiveness of a company over tenure.
Which of the following refers to analyzing what customers think of your brand?
Brand audit
Brand equity
Brand positioning
Brand survey (Not the answer)
Answer:
Brand survey.
Explanation:
Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.
Similarly, secondary market research can be defined as a method designed to determine the demographics of a particular target market.
Hence, brand survey is a form of market research and analysis that involves making inquiries from the users of a company's product to find out whether or not they are satisfied and to determine how to better the service and product.
This ultimately implies that, brand survey is a strategic process that typically involves analyzing what your customers think of your brand.
Answer:
Brand Equity
Explanation:
Just took the test
Susan has three credit cards - 1) an Old Navy card she got her last year of high school and now doesn't use that much, 2) a Visa card she got while in college and pays an $50 annual fee for benefits she doesn't use that much, and 3) a Mastercard she opened last month which has no annual fees. Susan has decided that she only needs two credit cards, which one should she get rid of
Answer: Visa card
Explanation:
Since Susan has decided that she only needs two credit cards, then she should keep the old Navy card she got her last year of high school and the Mastercard that she opened last month which has no annual fee.
In this case, since she doesn't use the Visa card that she got while in college and th e card pays an $50 annual fee for benefits that she doesn't use that much, thus means that the card isn't beneficial to her. Therefore, she should get rid of the Visa card.
When companies adopt the strategy formulation, strategy execution process, the first step is to Group of answer choices develop a strategic vision, mission, and values. execute the company's chosen strategy efficiently and effectively. adopt a proven business model, decide on the company's top management team, and craft a strategy. set objectives and develop a profitable business model to meet those objectives. monitor internal and external developments and initiate corrective adjustments to the business model when necessary.
Answer:
develop a strategic vision, mission, and values.
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;
I. Value.
II. Vision.
III. Mission.
On a related note, when companies adopt the strategy formulation, strategy execution process; the first step is to develop a strategic vision, mission, and values that would effectively and efficiently help it in achieving its aim, goals, objectives, and procedures in order to enhance the survival, growth, and overall effectiveness of a business firm.
Which behavior demonstrates teamwork?
A) Write a blog post about the value of teamwork.
B) Go out to lunch with coworkers.
C) Collaborate with coworkers to solve a technical problem.
D) Read a book about what one can learn from participating in team sports.
Answer:
c
Explanation:
collaborate with coworkers to solve a technical problem that's definitely teamwork
Collaborate with coworkers to solve a technical problem, behavior demonstrates teamwork. Therefore, option C is correct.
What is the technical problem ?Technical problems are unanticipated equipment issues, including hardware malfunctions or software defects, that make it difficult or impossible to carry out a desired operation.
Important disputes are resolved through collaboration, especially those that have an impact on relationships between groups. Integrating solutions, advancing perspectives, securing commitments, and learning more about the other parties and the conflict itself are the main collaborative actions.
Technical problems are equipment issues. The knowledge and skills required to carry out particular activities are known as technical skills. They are applicable and frequently have to do with mathematical, scientific, information technology, or mechanical jobs. Knowledge of design software, mechanical tools, or programming languages are a few examples.
Thus, option C is correct.
To learn more about the technical problem, follow the link;
https://brainly.com/question/1874645
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The current controllable margin for Henry Division is $48000. Its current operating assets are $300000. The division is considering purchasing equipment for $90000 that will increase annual controllable margin by an estimated $5000. If the equipment is purchased, what will happen to the return on investment for Henry Division?
Answer:
8.36% Increase
Explanation:
Calculation to determine what will happen to the return on investment for Henry Division
First step is to determine the return on investment using this formula
Return on investment = (Controllable margin ÷ Operating assets) × 100
Let plug in the formula
Return on investment= ($48,000 ÷ $300,000) × 100
Return on investment= 16%
Second step is to determine the new controllable margin
New controllable margin= $90,000 + $5,000
New controllable margin= $95,000
Third step is to calculate the new operating assets
New operating assets= $300,000 + $90,000
New operating assets= $390,000
Fourth step is to calculate new return on investment
New return on investment = ($95,000 ÷ $390,000) × 100
New return on investment =24.36%
Now let determine what will happen to the return on investment for Henry Division
Return on investment = 16% - 24.36%
Return on investment= 8.36% Increase
Therefore what will happen to the return on investment for Henry Division will be 8.36% Increase.
Marginal benefit is the * 1 point a) increase in net benefit that a person receives from consuming another unit of a good. b) additional efficiency from producing another unit of a good. c) increase in profit from producing another unit of a good. d) change in total benefit that occurs when a person consumes another unit of the good. e) total benefit from consuming all the units of the good or service.
Answer:
d) change in total benefit that occurs when a person consumes another unit of the good.
Explanation:
Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.
Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity.
Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.
This ultimately implies that, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.
Furthermore, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.
Marginal benefit can be defined as the highest amount of money (in dollars) that a consumer (buyer) is willing to pay to a seller in order to acquire an additional unit of a product i.e one more unit of the product.
Hence, marginal benefit would be described as the change in total benefit that occurs when a person consumes another unit of the good.
Inventory records for Dunbar Incorporated revealed the following: DateTransactionNumber of UnitsUnit Cost Apr.1Beginning inventory 480 $2.48 Apr.20Purchase 440 2.75 Dunbar sold 550 units of inventory during the month. Ending inventory assuming weighted-average cost would be:
Answer:
$965
Explanation:
Calculation to determine what Ending inventory assuming weighted-average cost would be:
First step is calculate the Weighted-average cost
Weighted-average cost = [(480 x $2.48) + (440 x $2.75)] / (480+440)
Weighted-average cost =1,190.4+1210/920
Weighted-average cost = 2400.4/920
Weighted-average cost =2.6091
Now let determine the Ending inventory
Ending inventory = (920-550) x 2.6091
Ending inventory = 370x 2.6091
Ending inventory =$965
Therefore Ending inventory assuming weighted-average cost would be $965
How can decision-making skills help me achieve my goals?
Answer:
Put forward objectives that you need to achieve. To be roused to really accomplish your objectives, they should be founded on the data that you considered during the dynamic interaction. Stage 2: Consider your objectives mindfully to guarantee that they don't negate one another.
Answer:
It helps you be more experienced when it comes to making tough decisions
Explanation:
The reason decision making skills can help you achieve your goals is by making you focus on what you need to do to be able to complete whatever obstacle you need to cross. Imagine you didn't have any decision making skills at all. One day you will come across some sort of situation where you would need to make a decision, for example lets say that you are a manager at an office building and there is an office worker who just doesn't do their job. There is another person who wants to work there and they are more hardworking than the lazy worker but there is no positions available. Your decision making skills would help you decide whether to fire the lazy worker so that the hard worker gets the job, or if you would let the lazy worker keep working there and the lazy worker does nothing productive for the company.
Hope this helps and wasn't too confusing.
Tom is head of the marketing department and must decide how to allocate a fixed amount of funds. There are two top projects that Jim believes hold the most promise. Recently, the majority of funds have been allocated to Project A, but Tom wonders if it is time to provide Project B with a larger share of the money. Tom decides to assign a particular individual, Janice, to thoroughly criticize the proposal for Project B, looking for every possible flaw. Which technique is Tom using to help him make a better decision
Answer: Devil's advocacy
Explanation:
Devil's advocacy could be defined as having a critique on a team, board of administration who most times goes against the decision of the group. It has been realized that this helps the groups to have unbiased decisions, reduces expenses and avoid pitfalls.
This decision making method is involved mostly in areas that has to do with finance and budget.
Tom deciding to choose Janice to criticize the project is playing out the Devil's advocacy.
What formula would be used to add two cells together after the equal sign?
A. Column#Row#-Column#Row#
B. Row#Column#+Row#Column#
C. Row#Column#+Column#Row#
D. Column#Row#+Column#Row#
Answer:
D. Column#Row#+Column#Row#
Explanation:
A spreadsheet can be defined as a file or document which comprises of cells in a tabulated format (rows and columns) typically used for formatting, arranging, analyzing, storing, calculating and sorting data on computer systems through the use of Microsoft Excel.
Microsoft Excel is a software application or program designed and developed by Microsoft Inc., for analyzing and visualizing spreadsheet documents.
In Microsoft Excel, the SUMIF function is a function that is designed to used to sum cells that meet criteria such as text, dates, and numbers. Also, this function can be used with the following logical operators; <, >, and =.
On a related note, the formula that would be used to add two cells together after the equal sign is Column#Row#+Column#Row#.
For example, A10B2 + A14B3.
15. Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians. Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs. A real estate broker in Mumbai who will only rent or sell a home to a vegetarian as defined that group as its:
Answer: Target market
Explanation:
Target market could be defined as those group who a producer deem fit to use his or her product. When a producer makes an item, he has a group of people in mind that would buy because they need it, those group of people are the target market. Every producer considered this.
The real estate agent target market are vegetarian because he's renting the houses for what it was specified to be
Juan argued that bluegrass is the best food for cattle in the Midwest. Sammy objected by citing how the authorities at the U.S. Department of Agriculture recommended alfalfa over bluegrass for Midwestern cattle. If Juan counters this objection by arguing that the U.S. Department of Agriculture is a bloated bureaucracy with too much fat that deserves to be cut in the next federal budget bill, then Juan has
Answer:
committed the fallacy of avoiding the issue.
Explanation:
The fallacy of avoiding the issue is also called the fallacy of irelevant conclusion or a red herring.
It occurs when an individual avoids dealing with an issue that he has a problem with.
In the given scenario the issue is whether bluegrass is better than Alfa Alfa for cattle in the Midwest.
Instead of Juan to address the issue he is arguing that the U.S. Department of Agriculture is a bloated bureaucracy with too much fat that deserves to be cut in the next federal budget bill.
He is not addressing the main issue
Elizabeth works at an auto firm, which recently shut down for five weeks to change machinery. However, during the shutdown, Elizabeth was able to maintain her standard of living because of the firm's _______________. A. supplemental unemployment benefits B. workers' compensation insurance C. supplemental health benefits D. disability insurance
Answer:
Option a: Supplemental unemployment benefits
Explanation:
Types of Employee Benefits and Services
1. Mandatory benefits
2. Retirement income
3. Health benefits
4. Pay for time not worked
5.Employee services
6.Miscellaneous benefits
Benefit plans
This is simply put in place just for retirement income and it is based on a proportion of the employee's pay at the time of retirement.
Supplemental unemployment benefits (SUBs)
This simply means an employer-provided benefit that extends government-provided unemployment benefits. It is made to a dismissed employee as a source of supplemental income. It is available only to an employee who is laid off owing to a training programme, a temporary layoff, or other health purpose.
Employment benefits.
This is simply regarded as the non-monetary remuneration that an employee receives after agreeing to an employment contract.
In the accounting system of Apogee Company, the quantities counted by the receiving department and entered at a terminal are transmitted to the computer, which immediately transmits the amounts back to the terminal for display on the terminal screen. This display enables the operator to Establish the validity of the account number. Verify that the amount was entered accurately. Verify the authorization of the disbursement. Prevent the overpayment of the account.
Answer:
Apogee Company
This display enables the operator to
Prevent the overpayment of the account.
Explanation:
This display means that the computer calculates the amount due on the account based on a predetermined and preset unit price in accordance with the local purchase order for the transaction. It is a verification of the amount that should be paid to the supplier. The receiving department can match this computer generated amount with the invoice amount before transferring the invoice to the payment department.
How are production limits used in practice to raise the prices of the following goods or​ services: Taxi​ rides? A. The government requires that each cab has a medallion​ (a license to​ operate). Assuming the number of taxis is greater than it would be without​ regulation, those taxis in the market may charge a​ lower-than-competitive price. B. The government requires that each cab has a medallion​ (a license to​ operate). Assuming the number of taxis is less than it would be without​ regulation, those taxis in the market may charge a​ higher-than-competitive price. C. The government requires that each cab has a medallion​ (a license to​ operate). Assuming the number of taxis is greater than it would be without​ regulation, those taxis in the market may charge a​ higher-than-competitive price. D. The government requires that each cab has a medallion​ (a license to​ operate). Assuming the number of taxis is less than it would be without​ regulation, those taxis in the market may charge a​ lower-than-competitive price.
Answer:
B. The government requires that each cab has a medallioned (a license to operate). Assuming the number of taxis is less than it would be without a regulation, those taxis in the market may charge a higher-than-competitive price.
Explanation:
In the case when the production limits are applied in order to increased the prices of goods and services so here the government need that each and every cab need a license for its operation also we presume that no of taxis should be lower as it would be with no regulation also those type of taxis could charged the high competitive price
Therefore the option b is correct
What is the answer?? No links
Answer:
c
Explanation:
get big brain kid not good kid get better bro
. Suppose the market for personal computers in country A is monopolistically competitive. Country A exports as well as imports personal computers from the rest of the world. After full adjustment to the opening of trade, a firm in this industry which enjoys scale economies will: A. receive a higher price for its product. B. receive a lower price for its product. C. enjoy a greater market share. D. ultimately go out of business. __________ 16. The clustering of
Answer: B. receive a lower price for its product
Explanation:
Monopolistic competition is a market structure whereby the elements of both monopoly and competitive markets are combined. In such market structure, there are many producers in the market but they're selling differentiated products.
In this case, due to the fact that there's freedom of entry and exit, there'll be more firms coming into the market due to the supernormal profit which is made at first but in the long run, a lower price will be received for goods and services as there are many sellers in the market. Therefore, a normal profit will be made.
During 20X5 Peterson Company experienced financial difficulties and is likely to default on a $500,000, 15%, three-year note dated January 1, 20X4, payable to Forest National Bank. On December 31, 20X5, the bank agreed to settle the note and unpaid interest of $75,000 for 20X5 for $50,000 cash and marketable securities having a current market value of $375,000. Peterson's acquisition cost of the securities is $385,000. Ignoring income taxes, what amount should Peterson report as a gain from the debt restructuring in its 20X5 income statement
Answer:
The amount that Peterson should report as a gain from the debt restructuring in its 20X5 income statement is $150,000.
Explanation:
This can be calculated as follows:
Details Amount ($)
Principal 500,000
Interest accrued 75,000
Net carrying amount 575,000
Settlement price:
Cash (50,000)
Current market value of marketable securities (375,000)
Gain from debt restructuring 150,000
Therefore, the amount that Peterson should report as a gain from the debt restructuring in its 20X5 income statement is $150,000.
Note: The gain calculated above is a gain before tax. The applicable tax rate to Peterson Company in its country of operation has to be used by it to determine its gain after tax.
