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MrMuchimi
3 years ago
15

A customer buys 100 shares of XYZ stock at $43 per share. The customer then sells 1 XYZ $45 Call contract for a premium of $500.

The call contract expires unexercised. After expiration, the customer's cost basis in the XYZ shares is:________
Business
1 answer:
tigry1 [53]3 years ago
6 0

Answer:

$4,300

Explanation:

Since the call expired, the $500 premium must be reported as a short term capital gain. Short term capital gains are taxed in the periods that they occur, so they do not affect the basis of the stocks. It is something similar to dividends, if you receive dividends they will be taxed as short term gains = ordinary income, bu they do not affect the stocks' basis.

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A nation can achieve higher economic growth if: Select one: a. it devotes more resources to research and development. b. the pro
Evgen [1.6K]

Answer:

The correct answer is A

Explanation:

Economic growth is defined as the rise in the capacity of the economy for producing or manufacturing the goods and services as compared from one year to another.

And the economic growth is determined in terms of GNP (Gross National Product) or in terms of GDP (Gross Domestic Product).

So, if the nation want to accomplish the higher level of economic growth, then the nation should devote more amount of resources in R & D (research and development).

5 0
3 years ago
The stock of Kenny Corp. is owned equally by two brothers. During 2013, they transferred land (basis of $300,000; FMV of $320,00
SpyIntel [72]

Answer:

long-term capital loss 140,000

Explanation:

the land enter the partnership at 320,000 cost

then it is being liquidate at 180,000

so it will be a capital-loss by 140,000

because it was held for more than two years It will be a long-term capital loss

This amount will be distributed amount the brother shares for profit and losses. Regardless of the fact that one of them contributed the land.

6 0
2 years ago
How can you prove to be an initiator?
inessss [21]

Answer:

D

Explanation:

to initiate something means to start it. By Initiating a conflict you are starting a series of problems and events.

6 0
3 years ago
Read 2 more answers
A real estate licensee specializes in helping both buyers and sellers with the necessary paperwork involved in transferring prop
ivanzaharov [21]

Answer:

Transactional broker

Explanation:

Transaction brokers are real estate professionals that offers their services to buyers and sellers, also are called facilitators.

They act in a neutral capacity as they are not agents of the buyer and seller. Instead they act as mediators between the two when transaction is taking place.

Not all states allow such non-agency practices of transaction brokers.

Transaction brokers usually handle details like preparing an offer, determine market price, and writing of contract to buy or sell. They do not get involved in negotiations

8 0
3 years ago
Bluegill Company sells 45,000 units at $18 per unit. Fixed costs are $62,000, and operating income is $298,000. Determine the (a
elixir [45]

Answer:

a. $10

b. $8 per unit

c. 44.44%

Explanation:

The computation is shown below:-

First we need to find out the Variable cost and contribution margin

Sales $810,000

(45,000 × 18)

Less: Variable cost $450,000

Contribution margin $360,000

Less: Fixed cost $62,000

Operating income $298,000

a. Variable cost per unit

Variable cost per unit = Total variable cost ÷ Total number of units

= $450,000 ÷ 45,000

= $10

b. . Unit contribution margin

= (Selling price per unit - Variable cost per unit)

= $18 - $10

= $8 per unit

c. Contribution margin ratio

= (Selling price per unit - Variable cost per unit) ÷ Selling price per unit × 100

= ($18 - $10) ÷ $18

= 44.44%

7 0
2 years ago
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