Sparrow corporation has recently acquired notes receivable that have a fair value of $405,000 and a carrying amount of $310,000. sparrow decides on december 31, 2017, to use the fair value option for the first valuation of these receivables. which of the following is incorrect?

(a) an unrealized holding gain of $95,000 will be reported as part of net income for the year ended december 31, 2017.
(b) interest revenue will be reported as part of net income for the year ended december 31, 2017.
(c) sparrow must value these receivables at fair value in all subsequent periods in which it holds these receivables.
(d) sparrow must value all similar receivables at fair value in all subsequent periods in which it holds this type of receivable.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

For the year ended december 31, a company has revenues of $323,000 and expenses of $199,000. the company paid $52,400 in dividends during the year. the balance in the retained earnings account before closing is $87,000. which of the following entries would be used to close the dividends account?

Which of the following has the largest impact on opportunity cost