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3 years ago

David bought stock for $4,000 and one year later he sold it for $1,000. The sale resulted in a:

Business

2 answers:

AURORKA [14]3 years ago

7 0

Answer:

Capital Loss

Explanation:

A capital loss occurs when an investment asset decrease in value between the time of purchase and the time for selling. The loss is realized only when the asset is sold. Examples of investment assets that can lose value include stocks, mutual funds, index funds, real estate, and bonds.

A capital gain or loss is the purchase price minus selling price of an investment asset. Capital gain is when the result is positive, implying that the asset has appreciated in value. A capital gain always attracts tax. David experienced a capital loss of $3000 as the selling price was lower than the buying price ($ 4000-$1000).

nalin [4]3 years ago

3 0

Answer:

The sale results in a capital loss of $3,000.

Explanation:

The stock was bought for $4,000 and was later sold for $1,000 one year later. It means that David lost $3,000 on the stock.

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suppose the returns on long term corporate bonds and T-bills are normally distributed. Based on the values below answer the foll

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Answer:

32.35% ( the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent )

Explanation:

Given data for long-term corporate bonds

Standard deviation : 8.3%

mean = 6.2%

To calculate the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent ( USING THE NORM-DIST FUNCTION )

P( x > 10% ) = 1 - P(x<10%) = 1 - NORM-DIST (10,6.2,8.3,TRUE ) = 0.3235

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3 years ago

Goldfinger Corporation had account balances at the end of the current year as follows: sales revenue, $29,000; cost of goods sol

vladimir2022 [97]

Answer:

sales revenue 29,000 debit

income summary 29,000 credit

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operating expenses 6,200 credit

income tax expense 4,320 credit

income summary 18,480 debit

retained earnings 18,480 credit

Explanation:

To close the temporary account we will use an auxiliar account called income summary.

We will post expense in the credit against income summary in the debit

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3 years ago

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The Diamond Outlet has current earnings per share of $1.96 and an expected earnings growth rate of 2.2 percent. The required ret

hjlf

Answer:

the current market value of this stock is $15.96

Explanation:

given

current earnings = $1.96 per share

growth rate = 2.2 percent

return on the stock = 13 percent

current book value = $12.70 per share

solution

first we get here return on equity that is

return on equity = [ current earning per share × ( 1 + growth ) ] ÷ book value per share ....................1

return on equity = $\frac{1.96 + (1+0.022)}{12.70}$

return on equity =15.77 %

and

now we get here payout ration that is

growth rate = retention ration × ROE ....................2

put here value

2.2% = (1 - payout ratio ) × 15.77

payout ratio = 86.05 %

and

now we get here current dividend per share that is

current dividend per share = current earning per share × payout ratio ...........3

put here value

current dividend per share = 1.96 × 86.05 %

current dividend per share = $1.6865

and

now we get here current market value

current market value = [ current dividend per share × ( 1 + growth ) ] ÷ [ required return - growth rate] ....................1

current market value = [Text]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[text]

current market value = $\frac{1.6865 \times (1+0.022)}{0.13-0.022}$

current market value = $15.96

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A company uses the dollar-value LIFO inventory method. At the end of 20X2 the cost index is 1.25 and the ending inventory at bas

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Option A. 300000.

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The FIFO method is the most popular inventory method because it's the one that most closely matches the actual movement of inventory for most businesses. This method assumes that the first products you acquired will be the first that are sold.

Your question is incomplete. please read below to find the full content.

Learn more about the inventory method at

brainly.com/question/6640325

#SPJ4

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