Answer:
d)$1,100 long-term capital gain
Explanation:
Given the information from the question. We know that a long-term capital gain or loss comes from investment that was possessed for a year or longer. However in this case, since the necklace was a gift .Therefore, there were no capital gain in 2014. In 2016, Lindsey sold the necklace for $1200. Therefore, the capital gain on the necklace will calculated as $1200- $100 = $1100. Where the $100 is a cost purchase for the previous owner. Therefore, long-term capital gain is $1100 which is option D.
Answer:
$343
Explanation:
Andrea and Phillip's annual premium cost can be calculated using the cost per thousand formula:
cost per thousand = annual premium / thousands of coverage
- cost per thousand = $0.98
- thousands of coverage = $350,000 / $1,000 = 350
$0.98 = annual premium / 350
annual premium = $0.98 x 350 = $343
Answer: Dumping
Explanation: it is called dumping.
<u>Solution and Explanation:</u>
<u>The calculation of determining the interest expense that must be recorded in a year end adjusting entry is as follows;
</u>
Interest Year Issue Months Note Value Interest
Rate End date Expense
11% Dec-31 Jul-01 6 5,400,000 297,000
9% Sep-30 Jul-01 3 5,400,000 121,500
10% Oct-31 Jul-01 4 5,400,000 180,000
7% Jan-31 Jul-01 7 5,400,000 220,500
The following formula is to be used while calculating the interest expense
(Note Face Value * interest Rate * time period)/12
Answer:
Consider the following explanation and calculation
Explanation:
In the existing portfolio, the risk or standard deviation is 28%
The Correlation Coefficients(CorC) of the 4 stocks in the portfolio is 0.4
Higher the CorC higher the risk of the portfolio.
The market standard deviation is 20%, which is below the current portfolio SD
The 40 stocks being added to the portfolio have a lower CorC of 0.3 (than the 0.4 of the existing stocks).
Since we are adding stocks with lower SD (20% market average) and lower CorC, this would bring down the risk of the portfolio.
This would narrow down to the options B and D.
But since no stock being added has a negative CorC, the possibility of the risk being cancelled (to 0%) is not present.
So the correct option is B.
Other way to look at it would be adding more and more stock from the market to the portfolio will bring the portfolio itself more and more closer to the market itself aligning the SD of portfolio equal to the market which is 20%