1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
The IS curve represents Select one: a. the single level of output where financial markets are in equilibrium. b. the combination
iragen [17]

Answer:

D. the combinations of output and the interest rate where the goods market is in equilibrium.

Explanation:

The IS curve means investment-savings curve.

The IS curve is the combinations of output and the interest rate where the goods market is in equilibrium.

It is a curve which shows the different combinations of income (Y) and the real interest rate (r) such that the market for goods and services is in equilibrium.

This means that, every point on the IS curve is an income/real interest rate pair (Y,r) such that the demand for goods is equal to the supply of goods(Qs=Qd) or equivalently, the desired national saving is equal to desired investment.

7 0
3 years ago
Read 2 more answers
The research department for your company needs to carry out a web conference with a third party. The manager of the research dep
Leya [2.2K]

Answer:

The answer is A, SSL

Explanation:

SSL which is the abbreviation for Secure Sockets Layer, is an encryption-based web security protocol. It is majorly used  to ensuring web space privacy, authentication and also achieve data integrity in Internet communications.

6 0
2 years ago
In 2017, Oriole Corporation reported net income of $1,004,700. It declared and paid preferred stock dividends of $278,600. Durin
nexus9112 [7]

Answer:

$3.62

Explanation:

The dividend distributed to common share = total net income - dividend for preferred stock

=  $1,004,700 -  $278,600

=  $726,100

Earnings per share (EPS) = The dividend distributed to common share / common shares outstanding

= $726,100/ 200700

= $3.62

4 0
3 years ago
Brandes purchases a delivery truck which will be used to deliver products to customers. the delivery truck is a/an?
frozen [14]

Electric bill payable Liability

<h3>Is an electric bill considered a liability?</h3>

In our example, the utility bills for gas and electricity used in December are both an expense and a liability as of December 31.

When the utility bills are paid, the liability is eliminated.

To learn more about liability, refer

to brainly.com/question/24553900

#SPJ4

7 0
1 year ago
all of these are costs of nonconformance except: a. training. b. rework and repair. c. scrap. d. liability judgments.
Juli2301 [7.4K]

All of these are costs of nonconformance rework and repair, scrap,  liability judgments except<u>  </u><u>training.</u>

<u />

What does liability mean?

A person's or organization's financial responsibility for any losses or damages caused to another person or organization is referred to as "liability" in law. It generally refers to the responsibility to pay for any damage caused by one's own actions or negligence.

What does Organization mean?

Organization is the process of structuring and coordinating the activities of people and resources in order to achieve a goal or set of goals. It entails establishing or creating distinct lines of authority, responsibilities, communication, and decision-making. Setting goals, planning, controlling resources, and assessing progress are all part of the process.

Therefore the option A. <u>training</u> is the correct option.

To know more about Liability,

brainly.com/question/14921529

#SPJ4

4 0
1 year ago
Other questions:
  • Firms can take out term life-insurance policies on their top executives. <br> a. True <br> b. False
    14·1 answer
  • Charles and Dina Bloom live in Swarthmore, PA. Dina's father, Gilberto, lives in Sweden. For each of the following transactions
    12·1 answer
  • The current U.S. dollarminusyen spot rate is 125yen​/$. If the 90minusday forward exchange rate is 127 yen​/$ then the yen is se
    9·2 answers
  • Cougar Corporation bought inventory on account on August 23rd. Cougar paid its supplier for the inventory on August 28th. Cougar
    7·1 answer
  • Some americans argue that _____ should be used to keep domestic wages high and unemployment low.
    5·1 answer
  • Electronic Wonders reports net income of $96,500. The accounting records reveal Depreciation Expense of $50,200 as well as incre
    8·1 answer
  • Frasquita acquired equipment from the manufacturer on 6/30/2021 and gave a noninterest-bearing note in exchange. Frasquita is ob
    10·1 answer
  • How much interest will Henry save if he finances the vehicle over 36 months instead
    7·1 answer
  • If the quantity of real domestic output demanded increased by $1,000 at each price level, the new equilibrium price level and qu
    7·1 answer
  • While preparing a bank reconciliation, a bank service charge was discovered. This adjustment would be recorded with a?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!