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NEW QUESTION: 1
In open market transactions, Gold Corp. simultaneously sold its long-term investment in Iron Corp. bonds
and purchased its own outstanding bonds. The broker remitted the net cash from the two transactions.
Gold's gain on the purchase of its own bonds exceeded its loss on the sale of the Iron bonds. Assume the
transaction to purchase its own outstanding bonds is unusual in nature and has occurred infrequently.
Gold should report the:
A. Net effect of the two transactions as an extraordinary gain.
B. Effect of its own bond transaction gain in income before extraordinary items, and report the Iron bond
transaction as an extraordinary loss.
C. Effect of its own bond transaction as an extraordinary gain, and report the Iron bond transaction loss in
income before extraordinary items.
D. Net effect of the two transactions in income before extraordinary items.
Answer: C
Explanation:
Choice "d" is correct, these are two separate transactions because Gold Corp. (1) sold Iron Corp. bonds
(an investment) for a loss, and, (2) bought back its own (Gold) Corp. bonds (a debt) for a gain. This is not
a "refinancing" (where one would sell new bond debt to buy back old bond debt outstanding).
The gain from the purchase of its own bonds is an "extraordinary gain" because it is both unusual in
nature and infrequently occurring (per APB Opinion No. 30 and SFAS No. 145). The Iron Corp.
transaction is a loss in "income before extraordinary items."
Choices "a" and "b" are incorrect. The two transactions are separate and cannot be netted.
Choice "c" is incorrect. Just the opposite. The sale of the investment is a loss in "income before
extraordinary items," while the purchase of its bond debt is an "extraordinary gain" according to the
provisions of APB Opinion No. 30.
NEW QUESTION: 2
Drag and drop each DMVPN in the left to the correct statement in the right.
Select and Place:
Answer:
Explanation:
Explanation
NEW QUESTION: 3
Which of the following is NOT one of the three main types of triggers that Dataflow supports?
A. Trigger based on time
B. Trigger based on element size in bytes
C. Trigger based on element count
D. Trigger that is a combination of other triggers
Answer: B
Explanation:
There are three major kinds of triggers that Dataflow supports: 1. Time-based triggers 2.
Data-driven triggers. You can set a trigger to emit results from a window when that window has received a certain number of data elements. 3. Composite triggers. These triggers combine multiple time-based or data-driven triggers in some logical way Reference: https://cloud.google.com/dataflow/model/triggers