The Analytical Framework Used to Evaluate Transactions Is Reproduced Below

question 32

Essay

The analytical framework used to evaluate transactions is reproduced below:
$\begin{array}{llllll}\text { Cash }+ \text { Non-Cash } =\text { Liabilities }+ \text { Contributed }+\text { AccunulatedOther }+\text {Retained}\\\quad \quad\quad\quad\text { Assets }\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Capital } \quad\quad\quad\text { Comprehensive }\quad\quad\quad\text {Earning:}\\\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Income}\end{array}$
Using this analytical framework indicate the effect of each of the following transactions for TX Corporation:
1. TX Corporation purchased marketable securities for $150,000 for cash.
2. At the end of the period TX Corporation revalued the securities to $125,000.
3. During the next period TX Corporation sells the securities for $165,000.

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Definitions:

Bylaws

A set of governing rules adopted by a corporation or other association.

Organizational Meeting

An initial gathering designed to establish the structure or operation of an organization, committee, or project.

Corporation Adopts

The process through which a corporation formally adopts policies, procedures, or changes in structure.

Declaring Dividends

The action by a company's board of directors to distribute a portion of earnings to shareholders as a reward for their investment.