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Yuri [45]
3 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]3 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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Anderson Compounds produces two industrial chemical compounds, Gorp and Gumm, from the same process, which last year, cost $480,
Olin [163]

Answer:

b. 320000

Explanation:

In order to calculate the joint cost of Gorp we need to understand what the method means and how it's used to calculate it. The adjusted sales method is used to allocate joint costs based on the prices the products are sold.

First of all we need to calculate the percentage of Selling price of Gorp to that of the total selling price of both Gorp and Gumm.

I.e: 60 ÷ (60+30) × 100

SP % of Gorp= 66.67%

Now we calculate joint cost allocated to Gorp.

Total joint cost of both Gorp and Gumm = $480000

Joint cost of Gorp = $480000 × 66.67%

Joint cost of Gorp = $320,000

3 0
3 years ago
Smaller bags of items are generally priced lower per unit than larger bags.
Pepsi [2]
<span>B. FALSE yes
Hi
GOOD BYE

</span>
3 0
3 years ago
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 46,000 mini refrigerators, of whi
notsponge [240]

Answer:

                                                                     $

Sales                                                       8,800,000

Less: Cost of goods sold (W1)               5,241,739.13

Contribution                                          3,558,260.87

Less: Fixed manufacturing cost               598,000

Less: Fixed selling and admin cost          320,000

Net Income                                            2,640,260.87

<em>(W1) Cost of goods sold</em>

Direct Material                                  3,450,000

Direct Labour                                    1,196,000

Variable manufacturing cost              782,000

Variable selling cost                            600,000

Total variable cost                            6,028,000

Less:closing inventory                     786,260.87 (6,028,000/46,000*6,000)

COST OF GOODS SOLD                  5,241,739.13

8 0
3 years ago
"IFRS uses a fair value test to measure impairment loss. However, IFRS does not use the first-stage recoverability test under GA
stiv31 [10]

Answer:

As a result, the IFRS test is more strict than U.S. GAAP.

3 0
3 years ago
________ and ________ are typically the most easily identifiable aspects of a company's business model.
Ket [755]

The parts of a company's business model that are often easiest to identify are market strategy and market opportunity.

A market opportunity is a newly identified demand that a company could use to grow; often, this is because competitors aren't filling it.

A marketing strategy is a long-term plan for achieving a company's goals through comprehending customer needs and creating a distinct, sustainable competitive advantage. Everything is covered, from selecting the channels to use to get in touch with your customers to identifying them.

The target market for the venture, a competitive analysis, marketing strategies, estimated launch expenses, and funding sources should all be included in the business model of a new company.

For more information, Market strategy and market opportunity

brainly.com/question/28305473

#SPJ4

3 0
2 years ago
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