question answered Solution 1. Since the investments are held for sale and are for less than a year, the investment in Yacht Inc would be classified as trading securities.. 2. Further, the Journal entries to record these transactions would be as follows: April 03 Investment in Yacht Inc.

1. question: based on past experience, a bank believes that 7% of the people who receive loans will
not make payments on time. The bank has recently approved 200 loans.
c) what's the probability that over 10% of these clients will not make timely payments?
Solution
p =0.07
n =200
mean = n*p = 200 * 0.07 = 14
x = 0.1 * 200 =20
sd = sqrt(p*(1-p)*n) =sqrt(200*0.07*0.93) = 3.61
z = (20 - 14) / 3.61 = 1.66
P(z>1.66) = 1 - P(z<1.66) = 1 - 0.9515 = 0.0485