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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.
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. No adjustment is necessary because reclassification to/from available-for-sale is strictly prohibited under U.S. GAAP and IFRS.
C. The difference between the fair value and the carrying value on the date of reclassification is recognized in Viper's other comprehensive income.
Answer: C
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)
NEW QUESTION: 2
Your deploy Azure App Service Web Apps that connect to on-premises Microsoft SQL Server instances by using Azure ExpressRoute You plan to migrate the SQL Server instances to Azure.
Migration of the SQL Server instances to Azure must
* Support automatic patching and version updates to SQL Server.
* Provide automatic backup services.
* Allow for high-availability of the instances,
* Provide a native VNET with private IP addressing.
* Encrypt all data in transit
* Be in a single-tenant environment with dedicated underlying infrastructure (compute, storage}.
You need to migrate the SQL Server instances to Azure.
Which Azure service should you use?
A. SQL Server in Docker containers running on Azure Kubermetes Service (AKS)
B. SQL Server in a Docker container running on Azure Container Instances (ACI)
C. SQL Server Infrastructure-as-a-Service (laaS) virtual machine (VM)
D. Azure SQL Database with elastic pools
E. Azure SQL Database Managed Instance
Answer: E
Explanation:
Azure SQL Database Managed Instance configured for Hybrid workloads. Use this topology if your Azure SQL Database Managed Instance is connected to your on-premises network. This approach provides the most simplified network routing and yields maximum data throughput during the migration.
Reference:
https://docs.microsoft.com/en-us/azure/dms/resource-network-topologies
NEW QUESTION: 3
You have an Azure subscription named Subscription1. Subscription1 contains the virtual networks in the following table:
Subscription1 contains the virtual machines in the following table:
The firewalls on all the virtual machines are configured to allow all ICMP traffic.
You add the peerings in the following table:
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
Explanation
References:
https://docs.microsoft.com/en-us/azure/virtual-network/tutorial-connect-virtual-networks-portal
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