Answer:
The answer is 5.559539 or 5.56.
Explanation:
From the given question let us recall the following statements
The current price of A put option on a stock = $47
With an exercise price of $49
Annual risk-free rate of annual interest is = 5%
The corresponding price call option is = $4.3
The next step is to find the put value
Now,
The Call price + Strike/(1+risk free interest) The Time to maturity =
Spot + Put price
Thus
The,Put price = Call price - Spot + Strike/(1+risk free interest)Time to maturity
When we Substitute the values, we get,
Put price = (4.35 - 47) + 49/1.05 4/12
Therefore, The Put Price = 5.559539 or 5.56
The fee is called an "excess mileage fee" she she has driven more miles than she was allowed in her lease agreement.
Answer:
a) FIFO
Explanation:
FIFO means first in, first out. It is an inventory system where the first purchased inventory is the first to be sold . The cost of goods sold is $30 which is equal to the price of the first purchased inventory . Therefore, the FIFO inventory system was used.
LIFO means last in, first out. It is an inventory system where the last purchased inventory is the first to be sold.
Weighted average is when the weighted price of inventory is used as the cost of goods sold.
I hope my answer helps you.
Answer:
$9,000
Explanation:
Vernon can only deduct the actual lease expenses incurred during 2016, and that is only three months: October, November and December.
= 3 months x $3,000 per month = $9,000
This logic applies to every expense that is paid in advance, you can only deduct payments that apply for the current tax year.
Answer:
a. $103,400
Explanation:
As we know that
Cost of goods sold = Beginning inventory + purchases - ending inventory
And,
Gross profit = Sales revenue - cost of goods sold
Since in the question it is given that
The ending inventory and beginning inventory had been overstated by $11,200 and $6,600 respectively
Since overstatement in the initial inventory raises the cost of the goods sold and decreases by that amount the gross profit & net income
And, overstatement in ending inventory reduced cost of goods sold and raised gross profit & net income by that amount.
So for overstated ending inventory the amount should be deducted and for overstated beginning inventory the condition would be reverse
So, the correct amount is
= incorrect pretax net income + overstatement in beginning inventory - overstatement in ending inventory
= $108,000 + $6,600 - $11,200
= $103,400
