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4 years ago

12

A customer sells short 100 shares of ABC stock at $63 per share. The stock falls to $47, at which point the customer writes 1 AB

C Sept 45 Put at $2. The stock falls to $36 and the put is exercised. The customer has a gain per share of:

1 answer:

vovikov84 [41]4 years ago

6 0

The best answer is B.

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Suppose an American subsidiary of UK company showed: Current assets of dollar 5 million; Current liabilities of dollar 4.1 milli

marishachu [46]

Answer:

0.004 million Euro is the translation gain

Explanation:

The total cost of asset before depreciation of dollar = dollar 7.2 million * 0.7538 = 5.427 million Euro

1 dollar = 0.7538 Euros

Cost of asset in Euros after after depreciation of dollar = 7.2 * 10^6 * 0.7500 = 5.4 million Euro

Total liabilities before depreciation of dollar = dollar 8.2 million * 0.7538 = 6.181 million Euro

Total liabilities after depreciation of dollar = dollar 8.2 million * 0.7500 = 6.15 million Euro

The total loss in asset value = 5.427 million -5.40 million = 0.027 million Euro

The total profit in liabilities = 6.181 million -6.15 million = 0.031 million Euro

Net profit = 0.031 million -0.027 million = 0.004 million Euro

4 0

3 years ago

Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective contai

Dennis_Churaev [7]

Answer:

1.

a. Dr Cash $948,000

Cr Liability for refundable deposits $948,000

b. Dr Liability for refundable deposits $873,000

Cr Cash $873,000

c. Dr Liability for refundable deposits $42,750

Cr Sale of containers $42,750

d. Dr Cost of goods sold $42,750

Cr Inventory of containers $42,750

2. $655,250

Explanation:

1. Preparation of Journal entries

Based on the information given we were told that the deposits collected on containers that were shipped was the amount of $948,000 which means that the Journal entry will be:

a. Dr Cash $948,000

Cr Liability for refundable deposits $948,000

b. Based on the information given we were told that the amount of $873,000 was refunded which means that the Journal entry will be :

Dr Liability for refundable deposits $873,000

Cr Cash $873,000

c. Based on the information given we were told that the deposits forfeited were the amount of $42,750 which means that the Journal entry will be :

Dr Liability for refundable deposits $42,750

Cr Sale of containers $42,750

Dr Cost of goods sold $42,750

Cr Inventory of containers $42,750

2. Calculation to Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.

Liability for refundable deposits, January 1, 2021 $623,000

Add: Deposits received during 2021 $948,000

Less: Deposits returned during 2021 ($873,000)

Less:Deposits forfeited during 2021 ($42,750)

Balance, December 31, 2021 $655,250

Therefore the liability for refundable deposits to be reported on the December 31, 2021, balance sheet will be $655,250

4 0

3 years ago

Gross wage refers to the wage an employee ears before deductions are subtracted.<br> True<br> False

defon

This sentence is true.

8 0

3 years ago

Tonya contributes $150,000 to Swan, Inc., for 80% of the stock. In addition, she loans Swan $600,000. The maturity date on the l

USPshnik [31]

Answer:

A. If the loan is not reclassified as equity, Swan can deduct interest expense annually of $18,000, and Tonya includes in gross income annually interest income of $18,000.

Explanation:

Loans received under $385 should not be reclassified as equity.

Interest expense is determined by multiplication of the money Tonya loans Swan multiplied by the interest rate.

Therefore,

Interest expenses = 600000 x 3%

= $18000

8 0

3 years ago

At December 31, 2019, Bramble Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 108,506

ale4655 [162]

Answer:

The earnings per share for Bramble in 2020 is $2.99

Explanation:

This was arrived at by preparing income statement for 2020,where in the results from continued operations and discontinued were shown.

The income from continued operations attracted tax at 35% while the losses from the discontinued operations got a tax benefit at the same 35% tax rate.

Note that the earnings used in calculating earnings per share is net of preferred dividends as only earnings attributable to ordinary shareholders are considered.

Find attached spreadsheet for the full blown income statement and the calculation of earnings per share.

5 0

3 years ago