" The order can be accepted as given, and can be executed at the discretion of the brokerage firm at any time or day " is TRUE about the handling of this order.
Explanation:
In this case "Discretion" applies to free trading when a broker conducts business in an user's account without any of the customer being contacted first.
It typically means that the broker will determine how many stock, commitments or other securities to purchase or sell, at what cost, without customer input.
For example, a consumer might approve only blue-chip investments. If an investor prefers socially responsible investments, the broker may not bet in stocks or under-funded businesses. The investor can advise the broker, but allow the broker to spend as the broker sees fit, to preserve a certain stock to bond ratio. A broker handling a discretionary account shall follow (if applicable) the customer's explicit orders and limitations.
Answer:
Paid in capital treasury stock = $1,600
Explanation:
Paid in capital treasury stock = (Market value - purchase value) × Number of share reissued.
Given,
Reacquired treasury stock = 2000 shares
As the shares were reacquired for $20,
Reacquired total treasury stock = 2,000 shares × $20 = $40,000
Reissued number of shares = 800
Market price of those treasury stock is $22 per share.
Therefore, paid in capital - treasury stock = $(22 - 20) × 800 shares
Paid in capital - treasury stock = $1,600
Answer:B-
Anna has a $250,000 tax basis for her partnership interest.
Explanation:
Since the e substituted basis rules of section 722 and 723 applys, Jason's basis for his partnership interest will be the same as his $180,000 basis for the property contributed. Anna will have a $250,000 tax basis for her partnership interest, Also the partnership will have a $200,000 adjusted basis for the land contributed by Anna and neither Jason nor Anna will recognize a gain or loss on their property contributions.
Explanation:
The solution can be made in tabular form as given below for better comprehension. This easily calculates gross profit for each of the four costing methods.
Particulars FIFO LIFO Avg cost Spec. ID
Sales 50900 50900 50900 50900
Cost of goods sold 31800 32920 32248 32540
Gross Profit 19100 17980 18652 18360
