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4 years ago

12

A customer buys a municipal bond in the secondary market at 96 that has 4 years to maturity. Two years later, the customer sells

the bond at 99. The tax consequences of this investment are:

1 answer:

Stolb23 [73]4 years ago

3 0

the correct answer will there in the book left page

You might be interested in

How many dollars does Johnson & Johnson make every 20 seconds?

Alex Ar [27]

Answer:

Johnson & Johnson make $51,433.28 every 20 seconds

Explanation:

<u><em>The complete question is</em></u>

I'm playing a riddle game thing and one of the questions is

"How many dollars does Johnson & Johnson make every 20 seconds?"

I found that they make 81.1 billion dollars yearly, but I have no clue how to get it to 20 seconds.

Remember that

1 year=365 days

1 day=24 hours

1 hour=60 minutes

1 minute=60 seconds

so

Convert year to seconds

$(365)(24)(60)(60)=31,536,000\ sec$

1 billion=1,000 millions

1 billion=1*10^9

81.1 billion dollars=81.1*10^9 dollars

we have

$81.1*10^{9} \frac{\$}{year}$

Convert to $/sec

$81.1*10^{9}\frac{\$}{year}=81.1*10^{9}/31,536,000=2,571.66\frac{\$}{sec}$

Multiply by 20 sec

$2,571.66(20)=\$51,433.28$

therefore

Johnson & Johnson make $51,433.28 every 20 seconds

3 0

3 years ago

Opinion: You have an opportunity to attend a four-year college for free. However, you are required to major in a career area tha

juin [17]

Answer:

I would go ahead and avail this opportunity. Although it is a wide spread phenomenon that one should only acquire a degree in a field which is at a boom and is possibly going to be successful in the future. But times keep changing. Fields and phenomenon which did not have a chance in the past have now become most successful with unfulfilled potential.

On the other hand, acquiring college education is a luxury. 4 years without paying for it is a chance that nobody should miss. You can come up with creative ideas to make that degree work. Besides, people do not actually get the jobs according to their degrees. So there is a possibility that I would land a job.

7 0

3 years ago

You're trying to choose between two different investment, both of which have up – front costs of $45,000. investment g returns $

DochEvi [55]

Amount invested in both schemes is $45,000
returns in investment g is 75,000 in 6 years.
yearly return is:
75000/6=12,500

returns in investment h is 105,000 in 9 years
yearly return is:
105,000/9
=11,666.67

from the above results we can conclude that investment g has the higher returns.

4 0

3 years ago

In 2019, Carla Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Carla had reve

dimulka [17.4K]

Answer:

Diluted earnings per share for 2020. is 93 cents

Explanation:

Diluted Earnings per share shows the<em> future position</em> of the Earnings per shareholders once the potential shareholders begin exercising their rights.

Potential Shareholders exists due to Financial Instruments that <em>might be converted into ordinary shares</em>. Examples are Convertible Bonds, Options, Convertible Preference shares.

<em>Step 1 Calculate Basic Earnings Per Share</em>

Basic Earnings Per Share = Earnings Attributable to Ordinary Shareholders / Weighted Average Number of Ordinary Shares in Issue during the period.

<u>Profits attributable to Ordinary Shareholders :</u>

Earnings ( $14,700 - $6,900) $7,800

<em>Less</em> After tax Interest on Bonds (60×$1,000×8%×80%) ( $3,840)

Profits attributable to Ordinary Shareholders $ 3960

<u>Weighted Average Number of Ordinary Shares</u>

Common stock outstanding 2,400 shares

Basic Earnings Per Share = $ 3960/ 2,400

= 165 cents

<em>Step 2 Calculate Diluted Earnings Per Share</em>

Diluted Earnings Per Share = Adjasted Basic Earnings per Share Earnings/ Adjasted Number of Ordinary Shares

<em></em>

<u>Adjusted Basic Earnings per Share Earnings</u>

Profits attributable to Ordinary Shareholders $ 3960

Add Savings on Interest (60×$1,000×8%×80%) $3,840

<em>Adjusted Basic Earnings per Share Earnings $7,800</em>

<u>Adjusted Number of Ordinary Shares</u>

Common stock outstanding 2,400 shares

Add 60× 100 shares of Convertible Bonds 6,000 shares

<em>Adjusted Number of Ordinary Shares 8,400 shares</em>

Diluted Earnings Per Share = $7,800/8,400 shares

= 93 cents

7 0

3 years ago

__________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell

ira [324]

Answer:

Franchise

Explanation:

This is a business arrangement where the owner of a successful business gives the right (through special business and legal arrangement) to another, to run such business in a specified location using his brand name in accordance with agreed terms and conditions. Under this arrangement, technical support and training are always provided by the franchiser.

The franchisor charges the franchisee a fee for the right which in most cases is periodic. The franchise is renewable.

7 0

3 years ago