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Yuri [45]
4 years ago
6

In January, a customer buys 100 shares of ABC stock at 450. Eleven months later in December, the stock is trading at $60. The cu

stomer buys 1 ABC Feb 60 Put @ $3. In Februrary, the stock is trading at $51 and the customer exercises the put. The tax consequence is:________.
Business
1 answer:
Dmitriy789 [7]4 years ago
8 0

Answer:

The options for this question are the following: A. $700 short term capital gain

; B. $700 long term capital gain

; C. $300 short term capital loss

; D. $300 long term capital loss.

The correct answer is A. $700 short term capital gain.

Explanation:

If a customer acquires shares and does not buy an option on the same day, then the option is not related to the action. The main concern of the IRS is that the client could try to buy a stock that has increased its value to ensure a profit while the tenure period is short term, and then simply wait until the tenure period is long term to sell the shares (either in the market or when exercising the option to sell and paying taxes at the lowest rate of 15%) without having been at risk. So, if the purchase option is purchased when the stock is held in the short term, the IRS cancels the retention period and does not start counting again until the sale option expires (and starts from day 1 at this point).

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A citation identifies the publication in which a legal authority can be found.​
Snezhnost [94]
<span>True. Citations provide a level of credit to the original author of a source and allow for legal and lawful use of a source. Without citations, the use of other sources to produce a work is considered to be plagiarism, a punishable offense at most Universities and workplaces.</span>
5 0
3 years ago
Compared to a perfectly competitive firm, the demand schedule of a monopolistically competitive firm faces is:________
Volgvan

Compared to a perfectly competitive firm, the demand schedule of a monopolistically competitive firm faces <u>downward-sloping demand curves</u>.

A monopolistic market is a theoretical situation that describes a marketplace in which only one agency might also provide products and services to the public. A monopolistic market is the other of a perfectly competitive marketplace, in which an endless variety of companies function.

Monopolistic opposition exists while many businesses offer competing products or services which might be similar, but not best, substitutes. The barriers to access in a monopolistic competitive industry are low, and the choices of anyone firm do now not directly have an effect on its competition.

A monopoly has management over the supply of the product but though it can are seeking to influence the demand, it does not have management over it. In truth, a monopoly has to make a preference. it may set the price, but then it has to just accept the extent of income, consumers is prepared to buy at that fee.

Learn more about monopoly here: brainly.com/question/13113415

#SPJ4

5 0
1 year ago
Which one of the following descriptions best describes horizontal integration? 1) the economic development of the American West
blondinia [14]

Answer:

b

Explanation:

5 0
3 years ago
Clarice became very ill in August of 2019 and was unable to work the rest of the year. She had only $30,000 of income from her j
CaHeK987 [17]

Answer:

total taxable income = $73,000

tax liability = $7,505

Explanation:

Clarice's ordinary income $30,000

Clarice's capital gains:

  • selling of stock = $34,000 - $16,000 = $18,000
  • selling of coin collection = $55,000 - $30,000 = $25,000
  • total long term capital gains = $43,000

Clarice's taxable income = $73,000

Clarice's ordinary income tax rate 2011:

ordinary income = $30,000 - standard deduction $5,800 = $24,200

  • 10% on taxable income from $0 to $8,500  = $850
  • 15% on taxable income over $8,500 to $34,500 = $2,355

ordinary income taxes = $3,205

Clarice's capital gains tax rate 2011 = 10%

capital gains taxes = $43,000 x 10% = $4,300

total tax liability = $7,505

5 0
4 years ago
Assume that in January 2017, Vivendi announced a €1.2 billion bond issuance. The bonds have a coupon rate of 6.75% payable semia
andriy [413]

Answer:

C. The coupon rate on these bonds would have been higher if Standard and Poor's, Moody's, and Fitch had assigned lower credit ratings

Explanation:

Assume that in January 2017, Vivendi announced a €1.2 billion bond issuance. The bonds have a coupon rate of 6.75% payable semiannually. Assume the bonds have been assigned credit ratings of BBB (stable outlook) by Standard and Poor's, Baa2 (stable outlook) by Moody's, and BBB (stable outlook) by Fitch.

Which of the following is not true? The coupon rate on these bonds would have been higher if Standard and Poor's, Moody's, and Fitch had assigned lower credit ratings.

8 0
3 years ago
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