Answer:
The trader has incurred a loss because the price of crude oil futures has increased.
Loss = (Today's closing price - Yesterday's closing price) * 10 * 100
Loss = (57 - 55.30) * 100 Per contract
Loss = $170 per contract
Loss for 10 contracts = 170 * 10 = $1,700
Now the account balance = Current margin balance - Loss for 10 contracts
The account balance = 28,000 - 1,700
The account balance = $26,300
Maintenance margin for 10 contracts = 2,500 * 10 = $25,000
Since the account balance is greater than the required maintenance margin for 10 contracts, the investor is not required to deposit money into the margin account.
Explanation:
Answer:
711,300
Explanation:
Net cash generated from operating activities can be calculated by deducting and adding back the cash and non-cash items respectively from the net income for the year. Such as depreciation will be added back in net income due to it is a non-cash expense
Net Income 624,000
Depreciation and amortization 87,000
Decrease in accounts receivable 22,000
Increase in inventories (9,200)
Increase prepaid expenses (8,500)
Increase in salaries payable 10,000
Decrease in income taxes payable (14,000
)
Net cash generated from operating activities 711,300
Answer:
Dr Cash 800,100
Cr Preferred stock 622,300
Cr Additional paid in capital, preferred stock 177,800
Explanation:
Preferred stocks and common stocks are part of stockholders' equity. Whenever they are sold above par value, the difference must be recorded as additional paid in capital. You must also specify which stocks were sold at a higher value.
Answer:
The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.
Explanation:
The distribution company distinguishes profit on the distribution, which is included in E&P netting of tax and decreases E&P by rhe lands fair market value fewer the liability believed by the shareholders.
Therefore, The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.
