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Answer:
Explanation:
Viper Motor Company, a publicly traded automobile manufacturer located in Detroit, Michigan, periodically invests its excess cash in low-risk fixed income securities. At the end of 2009, Viper's investment portfolio consisted of two separate bond investments: Pinto Corporation and Vega Incorporated.
On January 2, 2009, Viper purchased $10 million of Pinto's 4% annual coupon bonds at 92% of par. The bonds were priced to yield 5%. Viper intends to hold the bonds to maturity. At the end of 2009, the bonds had a fair value of $9.6 million.
On July I, 2009, Viper purchased $7 million of Vega's 5% semi-annual coupon mortgage bonds at par. The bonds mature in 20 years. At the end of 2009, the market rate of interest for similar bonds was 4%. Viper intends to sell the securities in the near term in order to profit from expected interest rate declines.
Neither of the bond investments was sold by Viper in 2009.
On January 1,2010, Viper purchased a 60% controlling interest in Gremlin Corporation for $900 million.
Viper paid for the acquisition with shares of its common stock.
Exhibit 1 contains Viper's and Gremlin's pre-acquisition balance sheet data.
Exhibit 2 contains selected information from Viper's financial statement footnotes.
What is the appropriate adjustment, if any, if the Pinto bonds are reclassified as available-for-sale securities during 2010?
A. Any unrealized gain or loss, as of the date of reclassification, is immediately recognized in Viper's net income.
B. The difference between the fair value and the carrying value on the date of reclassification is recognized in Viper's other comprehensive income.
C. No adjustment is necessary because reclassification to/from available-for-sale is strictly prohibited under U.S. GAAP and IFRS.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Reclassifying a hcld-to-maturity security to availablc-fbr-sale involves siating the investment on the balance sheet at fair value and recognizing the difference in the fair value and the carrying value as other comprehensive income. (Study Session 5, LOS 21.a)
Your company has purchased a Full Rack X-6 Exadata Cloud Service. It is your responsibility to create the Exadata Cloud Service instance for it. You need 160 TB of usable database storage and 100 OCPUs.
Which two statements are true?
A. When provisioning the service, you need 12 additional OCPUs.
B. When provisioning the service, you should not choose the database backups on Exadata storage option.
C. When provisioning the service, you should pick the high memory option.
D. When provisioning the service, you do not need any additional OCPUs.
E. When provisioning the service, you should pick the normal redundancy option to allow for the required space.
F. When provisioning the service, you should choose the database backups on Exadata storage option and
12 additional OCPUs.
Answer: B,C
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