Over time the average rate of return on stocks is

Bob is 46 and made $45,000 in wages in 2017. he divorced in 2014 and has not remarried. he pays all the cost of keeping up his h

allochka39001 [22]

Bob can claim Sara, but not Joan. To qualify for the Earned Income Credit, a child must be under the age of 19 (or under 24 if a student) or disabled, a child or direct descendant including grandchildren, living as a resident in your home with you for over half the year, having a valid social security number, and not claimed by someone else. Joan is not disabled or under 19, so she does not qualify. Sara is a direct descendant of Bob under 19 with a valid SSN who lives with him more than half the year, so she qualifies as long as Joan does not claim her.

8 0

3 years ago

Read 2 more answers

An investor purchases a stock for $39 and a put for $0.55 with a strike price of $32. The investor sells a call for $0.55 with a

Archy [21]

Answer:

The maximum profit and loss for this position is $3 and -$7 respectively

Explanation:

The computations are shown below:

For maximum profit:

= Strike price at the sale - stock price + put price - call price

= $42 - $39 + $0.55 - $0.55

= $3

For maximum loss:

= Strike price at purchase - stock price + put price - call price

= $32 - $39 + $0.55 - $0.55

= -$7

Simply we take the difference between the strike price ,and the stock price and after that the put and call price are adjusted

3 0

3 years ago

Bill Mitselfik has purchased a bond that was issued by Acme Chemical. This bond has a face value of $1,000 and pays a dividend o

kramer

Answer:

$1,068.02

Explanation:

For computing the selling price of the bond we need to use the Future value formula or function i.e to be shown in the attachment below:

Given that,

Present value = $1,000

Rate of interest = 10% ÷ 2 = 5%

NPER = 3 years × 2 = 6 years

PMT = $1,000 × 8% ÷ 2 = $40

The formula is shown below:

= FV(Rate;NPER;PMT;-PV;type)

The present value comes in negative

So, after applying the above formula, the selling price of the bond is $1,068.02

7 0

3 years ago

A company borrowed $40,000 cash from the bank and signed a 6-year note at 7% annual interest. the present value of an annuity fa

Anna [14]

The present value (PV) of an annuity of P equal periodic payments for n years at r% is given by:

$PV=Pa_{n\rceil r}$

where $a_{n\rceil r}$ is the present value of an annuity factor for n years at r%.

Given that a company borrowed $40,000 cash from the bank and signed a 6-year note at 7% annual interest and that the present value of an annuity factor for 6 years at 7% is 4.7665.

Then

$40000=4.7665P \\ \\ P= \frac{40000}{4.7665} =8,391.90$

Therefore, the annual annuity payments equals $8,391.90

6 0

3 years ago

Chambersburg Corp Between 2016 and 2017, Chambersburg sold some equipment that had an original cost of $57,500 . Which statement

DedPeter [7]

Answer:

Detailed Question lifted from google: 

Use the information presented below for Chambersburg Corp for 2017 and

2016 to answer the questions that follow. Chambersburg uses the straight-line depreciation method. 2017 2016 Property, plant, and equipment $ 250,000 $190,000 Accumulated depreciation 100,000 85,000 Depreciation expense 62,500 47,500 Net sales 1,000,000 900,000 Average Total assets 625,000 475,000 Refer to the information for

Chambersburg Corp Between 2016 and 2017, Chambersburg sold some equipment that had an original cost of $57,500 . Which statement is most likely true concerning transactions that must have occurred during the period?

a. Chambersburg also purchased additional equipment during the year.

b. The selling price of the equipment sold was reported with net sales.

c. The equipment that was sold had a book value of $12,500.

d. The equipment sold had not been reported with Chambersburg's property, plant and equipment.

The only applicable answer based on the question is A, Chambersburg also purchased additional equipment during the year.

Explanation:

A. Between 2016 and 2017 Property, plant, and equipment increased by $60,000 (which is $250,000 minus $190,000)

B. Between 2016 and 2017 Depreciation expense on Property, plant, and equipment increased by $15,000 (which is $62,500 minus $47,500)

Meaning attributable depreciation to the new addition to PPE of $60,000 is actually $15,000.

3 0

3 years ago