B1-29 Reporting change in fair value Obj.2 Explain how a change in fair value of an equity investment with less than 20% ownership is reported on the investor's (a) income statement and (b) balance sheet.

Dd.15.

Requirement General Journal General Ledger Trial Balance Fair Value Adj Transaction Analysis Fin St Impact For each transaction, indicate the change, if any, in total assets and total equity.  If equity changes, indicate whether the change was reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet.  Remember that the change in total assets must agree with the change in total equity.   Show less             Change in Change in equity:   Total assets As a component of net income As a direct component of stockholders' equity Total change in equity Apr. 16) Purchased 4,000 shares of Smith Co. stock at $30 per share. $0 $0   $0 Jul. 7) Purchased 2,500 shares of Edmunds Co. stock at $55 per share. 0     0 Jul. 20) Purchased 1,200 shares of Delray Co. stock at $22 per share. 0     0 Aug. 15) Received an $1.00 per share cash dividend on the Smith Co. stock.       0 Aug. 28) Sold 2,400…

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question 39 choose the correct answer from the choices

A1) For a given financial institution, its Income Gap and its Duration Gap always have the opposite sign. True or False A2) Duration Gap helps find the change in a______, whereas Income Gap analysis finds the change in b______. a. expense on liability, b. income from asset b. net worth, b. asset value c. net worth, b. income from assets d. asset value, b. liability value A3) In an interest rate swap, a RSA- financial institution such as the Friendly Finance Company would swap away _a___ in favour of _b___ in a contract. (RSA:r ate sensitive assets, FRA: fixed rate assets) A . RSA, b. FRA B . FRA, b. FRA C . RSA, b. RSA D . FRA. b. RSA A4)An interest rate swap designed to reduce the level of bank interest rate risks also guarantees profits at the same time. True or False A5)An interest rate swap designed to reduce the level of bank interest rate risks involves swapping A)only the underlying principal B)both the income flow and the principal C)none D)only the flow of income on an…