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NEW QUESTION: 1
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.
If Viper had initially classified its Vega bond investment as available-for-sale, which of the following best describes the most likely effect for the year ended 2009?
A. Higher return on equity.
B. Lower asset turnover.
C. Lower net profit margin.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
A $941,591 unrealised gain (7,941,591 FV- 7,000,000 BV) was included in Viper's net income since the Vega bonds were classified as trading securities. Had the Vega bonds been classified as available-for- sale, the unrealized gain would have been reported as a component of stockholders' equity. In that case, net profit margin would have been lower (lower numerator). (Study Session 5, LOS 21.a)
NEW QUESTION: 2
In a cloud implementation scenario, what does the sales professional must take into consideration regarding the revenue of a business outcomes selling?
A. Revenue from this model is immediate.
B. Revenue from this model is realized over a longer period of time.
C. Revenue from this model could increase in a 25%.
D. Revenue from this model is three times bigger than in the traditional product selling.
Answer: B
NEW QUESTION: 3
You are the Office 365 administrator for a company. You plan to implement Microsoft SharePoint Online, Exchange Online, and Skype for Business Online. End users will only use Outlook on the web for accessing email.
All outbound Internet connections for clients are blocked by default. You create inbound allow rules for the list of IPs that need to be exclude6 for Office 365.
You need to configure the outbound network ports that are required for client devices to connect to Office 365.
Which two ports should you configure? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. 0
B. 1
C. 2
D. 3
Answer: B,C
NEW QUESTION: 4
Which of the following is a key element of the Job Scheduling Service Management Function?
A. Fault Management
B. Directory types
C. Batch architecture
D. Infrastructure optimization
Answer: C
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