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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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Jabari​ Manufacturing, a widgets manufacturing​ company, divides its production operations into three processeslong - Department
lora16 [44]

Answer:

Cost per unit of widget produced = $6.52

Explanation:

As for the provided information:

Total units produced = 4,600 units

Total cost of production = costs for Department 1 + Department 2 + Department 3

= $18,000 + $8,000 + $4,000 = $30,000

It does not matter how many units are sold as the cost of sales will include, selling and administrative cost also.

Therefore, all the cost will be considered.

Thus total cost of production = $30,000 for 4,600 units.

Cost per unit of widget = \frac{30,000}{4,600} = 6.52

5 0
3 years ago
You have recently graduated from college with an MBA. Upon graduation, you start working for Roosevelt Power Plant. The boss, Mr
kvv77 [185]

Explanation:

Honesty in the workplace:

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  • Will stay focused on the work and the environment
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These these factors will help Mr. Jones to understand that fraud will be prevented and detected.

3 0
3 years ago
Charles wants to promote his gym and attract more elderly men to visit and become members. which of the following do you think w
8090 [49]

Out of the following answers, option A. seems most fitting. Elderly customers would likely want a calm environment where they can work at their own pace. The other options cater to other demographics. So A. would be an appropriate emphasis for Charles' message.

8 0
2 years ago
Read 2 more answers
Define bank run in your own words.​
lina2011 [118]

Answer:

A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency. As more people withdraw their funds, the probability of default increases, prompting more people to withdraw their deposits.

5 0
2 years ago
What is a credit limit?
Sati [7]
A credit limit<span> is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit (sometimes called a credit line, line of credit, or a tradeline).</span>
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3 years ago
Read 2 more answers
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