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Agata [3.3K]
3 years ago
10

A customer has purchased 5,000 shares of ABC corporation stock in lots of 100 shares over an extended period of time at varying

prices. The customer now sells 500 of the shares. Which statement is TRUE
Business
1 answer:
mrs_skeptik [129]3 years ago
5 0

Answer:

c. IRS rules allow the taxpayer to specify which shares being sold

Explanation:

Given that

Number of shares purchased = 5,000

Number of lots for shares = 100

The Number of shares sold = 500

based on the above information,

According to the internal service revenue (IRS) the taxpayer should be permitted to specify that shares which are sold i.e 500 shares so the same is to be considered

hence, the option c is correct

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Financial resources are also known as what?
vovikov84 [41]
Financial resources are also known as [ capital ]
6 0
3 years ago
Wu Systems has the following balance sheet. Assume that all current assets are used in operations. How much net operating workin
Alex

Answer:

It is e $990

Explanation:

Notice it is asking for net operating working capital, not just working capital.

Cash + Account Receivable  + inventory - accurals expenses - Account payable = net operating working capital

100 + 650+ 550         -    110      -   200                  =

       1300                      -             310                          =   990

While working capital is current assets - current liabilities

8 0
3 years ago
Read 2 more answers
Storico Co. just paid a dividend of $1.50 per share. The company will increase its dividend by 20 percent next year and then red
jeyben [28]

Answer:

The selling price today = $28.536

Explanation:

The question states that D0 is $1.5.

To calculate price, we need to calculate Present value of future dividends along with a terminal value from the time the dividend growth is becoming constant.

The D1 growth will be 20% of D2.

The fall in dividend growth will be 5% till it reaches 5%.

  • P0 = D1 / (1+r)  +  D2 / (1+r)²  +  D3 / (1+r)³  + D4 / r-g
  • Where,
  • r = required rate of return
  • g = growth rate

Thus,

P0 = 1.5*(1.2) / (1+0.15)  +   1.5*(1.2)*(1.15) / (1+0.15)²  +   1.5*(1.2)*(1.15)*(1.1) / (1+0.15)³   +  1.5*(1.2)*(1.15)*(1.1)*(1.05) / (0.15 - 0.05)

P0 = $28.536

4 0
3 years ago
On September 1, 2003, Time Magazine sold 600 one-year subscriptions for $81 each. The total amount received was credited to Unea
Alina [70]

Answer:

Total subscriptions revenue for the period= 4 months (September 1 - December 31)  

= (600 * $81) * 4/12

= $48,600 * 4/12

= $16,200

Hence adjusting entry would be:

Deferred subscriptions revenue a/c Dr $16,200

To Subscriptions revenue Cr $16,200

7 0
3 years ago
In which of the following cases is it most likely that an increase in the size of a tax will decrease tax revenue? Answers: A) T
DiKsa [7]

Answer:

The correct answer is option D.

Explanation:

An increase in the size of tax is likely to increase the tax revenue when the price elasticity of supply, as well as price elasticity of demand, are both large.  

The imposition of tax will cause an increase in the price of the product. If the price elasticity of demand is higher, an increase in the price will lead to a more than proportionate decrease in demand.  

At the same time, high price elasticity of supply means that when the tax is imposed the sellers will be able to reduce quantity more easily.  

So when less output is produced and demanded the tax revenue will also be lower.

6 0
3 years ago
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