The answer is Option.
An option contract is an agreement between two parties to facilitate a potential transaction involving an asset at a preset price and date.
An options contract offers the buyer the opportunity to buy or sell, depending on the type of contract they hold. If the contract states buying it will be the Call option. On the other hand, if the contract states selling it will become a Put option.
Buying an option offers the right, but not the obligation, to purchase or sell the underlying asset.
Hence, A foreign currency Option gives the purchaser the right, not the obligation, to buy a given amount of foreign exchange at a fixed price per unit for a specified period.
Learn more about the foreign exchange:
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Answer:
Unter Corporation
1. The payback period of the investment is:
= 5 years.
2. No. The payback period would not be affected if the cash inflow in the last year were several times as large. The payback period was reached in the 5th year, which is half-way before the last year. As it stands, no cash inflows after the 5th year will have any impact on the payback period.
Explanation:
a) Data and Calculations:
Cash flows:
Year Investment Cash Inflow Cumulative inflow
1 $ 42,000 $ 3,000 $3,000
2 5,000 $ 6,000 9,000
3 $ 12,000 21,000
4 $ 14,000 35,000
5 $ 16,000 51,000
6 $ 15,000
7 $ 13,000
8 $ 11,000
9 $ 10,000
10 $ 10,000
Total $47,000 $110,000
Answer:
Arianna's basis for loss $277,335
Arianna's basis for gain $308,,150
Explanation:
Calculation for Arianna's gain basis and loss basis
Since the original basis for loss on personal use assets that is been converted to either the business or the income producing use is the lower or lesser of the property's adjusted basis or fair market value on the date of conversion which means that the gain basis for the converted property will tend to be the property's adjusted basis on the date of conversion.
Arianna's basis for loss will be $277,335 (lower of $308,150 adjusted basis and fair market value of $277,335).
The amount of $30,815 that was been decline in value is a personal loss whichncan never be recognized for tax purposes this means that Arianna's basis for gain is $308,,150 (adjusted basis).
Answer:
Please find the detailed answer as follows:
Explanation:
a) The cost of obtaining an MBA degree for someone who is employed in a business position normally is a deductible education expense. But if the reason for taking course is to qualify her for a new trade or business then the expense will not be deductible or disallowed.
Reasons Deductible or Nondeductible
- It is to maintain or improve existing skills required in her present job. Deductible
- It is to meet the minimum educational standards for qualification in her existing job. Deductible
- It is to qualify her for a new trade or business. Nondeductible
.
- It is to meet the express requirements of her employer or the requirements imposed by law to retain her employment status. Deductible.
b) $4,000 will be allowed as deduction for qualified tuition under § 222. Except for this amount of tuition portion, Jamie must itemize to claim the deduction and it will also be subject to the 2% of AGI limitation.
