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Rainbow [258]
3 years ago
7

Ms. Crocker bought 1,000 shares of EMO Corporation stock for $10,000 on January 20, 2017. On December 28, 2018 she sold all 1,00

0 shares of her EMO stock for $9,000. Based on a hot tip from her friend, she bought 1,000 shares of EMO stock on January 15, 2020 for $7,000. What is Ms. Crocker’s recognized loss on her 2019 sale and what is her basis in her 1,000 shares purchased in 2020?
Business
1 answer:
jasenka [17]3 years ago
5 0

Answer:

The answer is: Ms. Crocker LTCL is $0 and her basis for her 1,000 shares purchased in 2020 is $8,000

Explanation:

Ms. Crocker initially bought 1,000 stocks at $10,000, then she sold her stock at $9,000 losing $1,000. Then she again bought the same stock for $7,000. She can offset her initial loss ($1,000) and instead add it to the value of the stock purchased later. So instead of having 1,000 shares with a $7,000 value, she can value her stock at $8,000.

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Presented below are two independent cases related to available-for-sale debt investments. Case 1 Case 2 Amortized cost $41,640 $
netineya [11]

Answer:

Case 1 = $9,420

Case 2 = 0

Explanation:

Determining the amount of impairment loss is given below:-

Case 1

Impairment loss = Amortized cost - Fair value

= $41,640 - $32,220

= $9,420

Case 2

Impairment loss = Amortized cost - Fair value

= 91,800 - $102,220

= 0

Since, the fair value is higher than Amortized cost so the value of Impairment loss in case 2 is 0.

5 0
3 years ago
Jack's Corp. has $5 billion is total assets, and its tax rate is 40%. Its basic earnings power (BEP) ratio is 12%, and its retur
Inessa [10]

Based on the information given Jack's times-interest earned (TIE) ratio is 3.28.

<h3>Times-interest earned (TIE) ratio is 3.28.</h3>

BEP = EBIT ÷ Total Assets

12% = EBIT ÷ $18 billion

EBIT = 12% × $5 billion

EBIT= $0.6 billion

ROA = Net Income ÷ Total Assets

5% = Net Income ÷ $5 billion

Net Income = 5% × $5 billion

Net income= $0.25 billion

Earning before tax:

Earning before tax= Net income ÷ (1 - tax)

Earning before tax= $0.25 ÷ (1 - 0.40)

Earning before tax= $0.25 ÷ 0.60

Earning before tax= $0.417 billion

Interest Expense:

Interest Expense= EBIT - EBT

Interest Expense= $0.6 billion - $0.417billion

Interest Expense= $0.183 billion

Times interest earned ratio:

Times interest earned ratio= EBIT ÷ Interest expense

Times interest earned ratio= $0.6 billion ÷ $0.183 billion

Times interest earned ratio= 3.28

Inconclusion Jack's times-interest earned (TIE) ratio is 3.28.

Learn more about  times-interest earned (TIE) ratio here:brainly.com/question/17150434

7 0
2 years ago
Flapjack Corporation had 7,712 actual direct labor hours at an actual rate of $12.20 per hour. Original production had been budg
TEA [102]

Answer:

b.$7,172.16 favorable

Explanation:

(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance

std rate          $  13.13

actual rate  $  12.20

actual hours       7,712

difference between actual and standart rate $0.93

As it is positive the variance is favorable as we spend less per hour than standard.

Now, we multiply by the actual hours to get the rate variance:

7,712 hours x $0.93 = $7,172.16

4 0
2 years ago
Read 2 more answers
A city that is attempting to attract a professional football team is planning to build a new stadium costing $500 million. Annua
garik1379 [7]

Answer:

Capitalized cost = - $510,758,686.20

Explanation:

Interest rate = r = 10%, or 0.10

Present value of base cost = $500 million = $500,000,000

Present value of annual upkeep =  $1,000,000 / r = $1,000,000 / 0.10 = $10,000,000

Present value of the replacement cost of artificial turf  every 20 years = ($2,000,000 * (r / (((1 + r)^20) - 1)) / r = ($2,000,000 * (0.10 / (((1 + 0.10)^20) - 1)) / 0.10 = $349,192.50

Present value of painting every 5 years = ($250,000 * (r / (((1 + r)^5) - 1)) / r = ($250,000 * (0.10 / (((1 + 0.10)^5) - 1)) / 0.10 = $409,493.70

Therefore, we have:

Capitalized cost = - Present value of base cost - Present value of annual upkeep - Present value of the replacement cost of artificial turf  every 20 years - Present value of painting every 5 years = - $500,000,000 - $10,000,000 - $349,192.50 - $409,493.70 = - $510,758,686.20

6 0
2 years ago
A _____ risk is a risk with a possibility of loss, but no possibility of gain.
77julia77 [94]

Answer: ANSWER: Pure

Explanation: Only pure risks are insurable because they involve only the chance of loss. They are pure in the sense that they do not mix both profits and losses. ... Both speculative risk and pure risk involve the possibility of loss. However, speculative risk also involves the possibility of gain as well - even if there is no loss.

3 0
3 years ago
Read 2 more answers
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