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Stels [109]
3 years ago
12

On July 1, 2016 Harold paid $10000 for a Ten year bond with a stated interest rate of 5%, payable annually on July 1. On April 1

, 2017, 274 days after purchasing the bond, Harold sold the bond to Sam for 10050. Which of the following should be reported on Harold’s return.
a. $0 of interest income and $50 of short term capitol gains
b. $125 of interest income and $50 of short term capital gain
c. $375 of interest income and $50 short term capital gain
d. $376 of interest income and $375 of short term capital loss.
Business
1 answer:
Darina [25.2K]3 years ago
3 0

Answer:

c. $375 of interest income and $50 short term capital gain

Explanation:

The question is to determine the income and the capital gains to be reported by Harold on his 10 year bond.

Capital Gains represent are gains or loss can either be generated as a result of selling your bond fund before its maturity or when the bond is held to maturity.

Furthermore, the rule specifies that to treat the capital gains on the bond as long term it must be held for at least a year.

In this question:

The bond was purchased on the 1st of July, 2016 at $10,000

The bond was sold April 1, 2017 at $10,050. Since, the bond was only held for 274 days. It will only get short term capital gain

Short term capital gain = $10,050- 10,000 = $50

Also, The interest on bond income = (10,000 x 5%) x ( 274/ 365 days)  

= 500 x 0.75

=$375 Interest Income

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Before polling students in the School of Business, the researcher divides all the current students into groups based on their cl
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Stratified random sampling.

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Startified random sampling is one that divides the total population into subpopulations and analysis of each subpopulation is done to measure variations between them.

Each subpopulation is adequately represented in the whole sample used for study. For example when a population bis divide based on age into 18-30 years, 31-50 years, and 51 years and above.

The researcher divides all the current students into groups based on their class standing (freshman, sophomores, etc.). Then, she randomly draws a sample of 50 students from each of these groups to create a representative sample of the entire student body in the school.

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3 years ago
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At a cocktail party, you can expect the average person to eat how many hors d'oeurves in two and a half
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The Atlantic Company sells a product with a break-even point of 6,220 sales units. The variable cost is $83 per unit, and fixed
Varvara68 [4.7K]

Answer:

a. Sales price per unit = $118

b. Break-even point in sales units = 8,139

Explanation:

a. Determine the unit sales price. Round answer to nearest whole number. $fill in the blank 1

Break-even point in sales units = Fixed costs / (Sales price per unit - Variable cost per unit) …………….. (1)

Substituting the relevant values from the question into equation (1) and solve for Sales price per unit, we have:

6,220 = $217,700 / (Seles price per unit - $83)

6,220 (Seles price per unit - $83) = $217,700

(6,220 * Sales price per unit) - (6,220 * $83) = $217,700

(6,220 * Sales price per unit) - $516,260 = $217,700

(6,220 * Sales price per unit) = $217,700 + $516,260

(6,220 * Sales price per unit) = 733,960

Sales price per unit = 733,960 / 6,220

Sales price per unit = $118

b. Determine the break-even point in sales units if the company desires a target profit of $67,165. Round answer to the nearest whole number. fill in the blank 2 units

Break-even point in sales units = (Fixed cost + Targeted profit) / Seles price per unit - Variable cost per unit) …………….. (2)

Substituting the relevant values into equation (2), we have:

Break-even point in sales units = ($217,700 + $67,165) / ($118 - $83) = $284,865 / $35 = 8,139

3 0
2 years ago
This famous Act banned all combinations and practices that restrained free trade. It ended up banning monopolies, vertical integ
jolli1 [7]

Answer:

The Sherman Antitrust Act.

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So, the correct answer is the Sherman Antitrust Act of 1890.

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