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Mazyrski [523]
3 years ago
11

Caroline pays 15% taxes on dividends and capital gains and 35% taxes on ordinary income. Three years ago, she purchased 100 shar

es of XYZ, Inc. for $70. In January, Caroline wrote a six month put option on the stock at an exercise price of $90 and received $500. Three days after the purchase, the price of XYZ dropped significantly and has not been above $80 since. The result is that the put buyer chose not to exercise her put. Ignoring commissions, Caroline’s tax on this transaction is
A. $ 75B. $175
C. $225D. $325E. $650
Business
1 answer:
Lilit [14]3 years ago
8 0

Answer:

The answer is: B) $175

Explanation:

Caroline made an income of $500 from this transaction and it should be taxed at ordinary income rate (35%).

Caroline´s taxes = $500 x 35% = $175

In order for Caroline to be taxed at 15% (capital gains rate) she should have sold a capital asset that she had owned for more than one year, but in this case she didn´t sell any stock.

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Switzerland exports watches to Russia. Watches are relatively capital intensive in their production process. With trade, the pri
In-s [12.5K]

Answer:

A) we would expect the price of capital to rise by more than 10 percent in Switzerland.

Explanation:

In foreign trade, the magnification principle is part of the Stolper-Samuelson theorem and it states that the price of a factor that is used intensively in the production of a good or service will change in a larger proportion than the price of the good or service produced. In other words, the change in the price of capital will increase by a larger proportion than the goods produced using it. So if the price of watches increases by 10%, then the price of capital will increase by more than 10%

7 0
3 years ago
15 points please help
arsen [322]

Answer:nenhuma das questões a cima

Explanation:

8 0
2 years ago
Claire is severely injured in a car accident. The local hospital cannot treat Claire’s injuries. In order to survive, Claire mus
mote1985 [20]

Does it matter that the helicopter company <em>performed its obligation</em> under the contract?

  • Yes, it does matter because they had a legally binding agreement.

<h3>What is a Contractual Agreement?</h3>

This refers to the legally binding document which two parties attest their signature to about an agreement for a particular thing with the terms clearly stated.

With this in mind, we can see that Claire who was involved in a car accident needs to go to a hospital in another state for better treatment for her injuries and she signs a contractual agreement that she would pay for the helicopter expenses.

In light of this, the argument which Claire can make to rescind the agreement is that her life was in danger and she needed the services of the helicopter company which had her Universal Right to Life.

Read more about contractual agreements here:
brainly.com/question/984979

3 0
3 years ago
The parts can be purchased from an outside supplier for only $28 each. The space in which the parts are now produced would be id
noname [10]

Answer:

d) $56,000 decrease

Explanation:

In the case when parts are produced by sharp corporation

Given that

Total cost per unit = $36

Total cost = Total cost per unit × parts

= $36 × 8,000

= $288,000

Now

If the parts are Purchased by the outside supplier, fixed costs decreased by one-fourth.

So, three-fourth fixed costs should be incurred.

Now  

Total cost per unit = Purchase Price + three - fourth fixed costs

= $28 + (3 ÷4) × $20

= $28 + $15

= $43

Now

Total cost = $43 × 8,000

= $344,000

So, the operating income is

= $288,000 - $344,000

= $56,000 decrease

7 0
3 years ago
If you use a credit card what are you creating
serious [3.7K]
The answer would be debt, if it was a debit card it would be a completely different answer  
8 0
3 years ago
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