Answer:
$7,500
Explanation:
A few points must be considered in order to calculate ther realized gain.
1. Although Robert's stock in Lebec Corporation was $15,000 at cost, it was sold to Karen (his sister and related party) for $8000. Since it is related party transaction, the loss of $7000 ($15,000-$8,000) cannot be reported as a loss.
2. Karen's basis for the stock is $8000 (the amount she bought it from her brother).
3. Karen sold the stock to Dana for $15,500. The realized gain since Dana is not related is $15,500-$8,000= $7,500. This becomes the realized gain since it is an unrelated party transaction.
Hello There! The Answer to this problem is: B, C, E, G
Explanation:
Answer:
d. 4%.
Explanation:
The computation is shown below;
We know that
Expected stock return = Risk free rate + Beta × Market risk premium
So,
Expected stock return X is
= 2% + 1.4 × 5%
= 9%
And,
Expected stock return Y is
= 2% +.8 × 5%
= 6%
Now
Expected Portfolio return Y and risk free asset is
= Weight stock y × return Y + Weight risk-free asset × Return risk-free asset
= .5 × 6% + .5 × 2%
= 4%
The most cost effective way for John to buy a house in the suburbs is:
a.Move to the suburbs and rent a house for one year before purchasing a home.
This is to test the waters. During this time, he has to acclimatize himself into living in a new environment. He has to discover the pros and cons of living in the suburbs compared to living in the city like travel time in going to work, etc.
If after a year, he finds its more beneficial to live in the suburbs, then he can buy a house there. On the other hand, if he finds it costly to live in the suburbs compared to living in the city, he simply has to pay the necessary rent and utility bills, pack up his bags, and go home.
<span>The bungee company can claim you knew the risks of bungee jumping as the jumper signed and complied with all the paperwork and consent forms before performing the jump.</span>
