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emmainna [20.7K]
3 years ago
15

On July 20, 2017, Matt (who files a joint return) purchased 3,000 shares of Orange Corporation stock (the stock is § 1244 small

business stock) for $24,000. On November 10, 2017, Matt purchased an additional 1,000 shares of Orange Corporation stock from a friend for $150,000. On September 15, 2018, Matt sold the 4,000 shares of stock for $120,000. How should Matt treat the sale of the stock on his 2018 return?
Business
1 answer:
ivann1987 [24]3 years ago
5 0

Answer Choices:

a. $54,000 ordinary loss.

b. $100,000 ordinary loss; $46,000 net capital gain.

c. $100,000 ordinary loss; $20,000 STCL.

d. $130,000 ordinary loss; $66,000 LTCG.

e. None of the above.

Answer:

e. None of the above.

Explanation:

Matt has a $54,000 STCL ($120,000 - $66,000)

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3 years ago
A company has a $20 million portfolio with a beta of 1.2. It would like to use futures contracts on a stock index to hedge its r
11111nata11111 [884]

Answer: 88.89 or 89

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Given the following ;

Portfolio value(p) = $20million

Portfolio Beta (b) = 1.2

Index price (i) = 1080

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Future value(A) = index price × multiplier

Future value(A) = 1080 × 250 = 270000

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N = ($20,000,000×1.2)÷270000

N = 24000000 ÷×270000

N = 88.8888=88.89

N = 89 (NEAREST whole number)

7 0
3 years ago
Alicia is working on a presentation about the top 10 employees of the month in her office. She wants to add a bold effect to the
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Desmond, a US citizen, opens and operates a jewelry store in Lisbon, Portugal. This counts as: investment for Desmond and US for
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Highland Company's standard cost is $250,000. The allowable deviation is ±10%. Its actual costs for six months are as follows Ja
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Answer:

The month that is lower than the lower control limit is February ($220,000).

Explanation:

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