On January 10, Year 1, Wayne, Inc., purchased 5,000 of Jason bonds at $60 par per bond. The purchase is a long-term investment and is appropriately reflected in Wayne's balance sheet in an available-for-sale securities portfolio at December 31, Year 1. The fair value of Wayne's investment in Jason's bonds are as follows: Fair value Date Per bond Total December 15, Year 1 $47 $235,000 December 31, Year 1 46 230,000 On December 15, Year 1, Wayne determined that the decline in the fair value was attributed to credit loss. What amount should Wayne record as a loss in its income statement for the year ended December 31, Year 1?

$70,000 loss

Explanation:

the carrying value at December 31, Year 1 = 5,000 shares x $60 per share = $300,000

the fair market value at December 31, Year 1 = 5,000 shares x $46 per share = $230,000

realized loss/gain = fair market value - carrying value = $230,000 - $300,000 = -$70,000 or $70,000 loss

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi