Answer:
Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 jobs. The NFP conventional contract pays out $85 for every job created in excess of the exercise price. a. What is the value of the option if job growth is 193,500.
The value of the option if job growth is 193,500 is $0.
Explanation:
Since the job growth of 193,500 is less than the exercise price of 210,500 jobs, the value of the option on the contract in the given question is Zero.
Therefore, the value of the option if job growth is 193,500 is $0.
Answer:
3,000
Explanation:
As the income will be taxed at 25% the income tax liability will be for that amount
12,000 x 25% = 3,000
The tax deferred liability is generated from a temporary difference. The company is paying less income tax today but will pay more in the future. Hence there is a liability.
The accounting reason for this treatment is to match expenses with the time they occur or the revenues which generated.
Answer:
Their responsibilities are influenced by top managers; however, their responsibilities are ... In order to do this, they must implement subunit strategies for achieving those objectives. ... They are concerned with intermediate range plan ... Managers at this level train and supervise the performance of nonmanagerial employees
Answer:
Explanation:
The computation is shown below:
Corporate tax = (Taxable income - bonus expenses) × corporate tax rate
= (925,000 - $153,000) × 21%
= $162,120
The corporate tax rate is 21% and we take the same for computation
Shareholder tax = Bonus expenses × marginal tax rate
= $153,000 × 35%
= $53,550
So, the total income tax would be equal to
= $162,120 + $53,550
= $215,670