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Marat540 [252]
3 years ago
6

Tom recently received 2,000 shares of restricted stock from his employer, Independence Corporation, when the share price was $10

per share. Tom's restricted shares vested three years later when the market price was $14. Tom held the shares for a little more than a year and sold them when the market price was $12. What is the amount of Tom's income or loss on the sale?
A. $0.
B. $2,010 loss.
C. $4,020 gain.
D. $4,020 loss
Business
1 answer:
givi [52]3 years ago
5 0

Answer:

$4,000 gain

Explanation:

The computation of the tom income or loss is shown below:

= Number of shares × (market price sold - fair value of share price)

= 2,000 shares × ($12 per share - $10 per share)

= $4,000 gain

This is the answer and the same is not provided in the given options.

We simply take the difference between the market price sold and the fair value of share price and then multiply it by the number of shares so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

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Income rises from $3,500 to $4,000 a month and the quantity demanded of good X falls from 7 to 5 units a month. Income elasticit
finlep [7]

Answer:

E) -2.50 ; inferior

Explanation:

Before you earned $3,500 per month, you consumed 7 units per month. That means that you consumed 1 unit every $500 earned.

When your income increased to $4,000, you only consumed 5 units per month. That means that your consumption decreased to 1 unit for every $800.

The income elasticity of demand using the midpoint method is calculated by using the following formula:

income elasticity = {change in quantity demanded / [(old quantity + new quantity) / 2]} /  {change in income / [(old income + new income) / 2]}  

= {-2 / [(7 + 5) / 2]} /  {500 / [(3,500 + 4,000) / 2]} = (-2 / 6) / (500 / 3,750) = -0.333 / 0.133 = -2.5

Since the income elasticity of demand is negative, the good X is an inferior good.

7 0
3 years ago
The demand curve faced by a perfectly competitive firm rev: _______
vivado [14]

Answer:

The answer is D.

Explanation:

The demand curve faced by perfectly competitive firm is horizontal. This means that if individual firm charges price above the market price, it will not sell anything.

The curve is the same as marginal revenue curve because change in total revenue from selling one more unit(marginal revenue) is the constant market price.

And it holds in perfect market that price equals marginal revenue (P=MR).

The correct option is D.

6 0
3 years ago
An economic model can be defined as___________a. a testable claim which can be evaluated with proper data.b. a representation of
Radda [10]

Answer:

b. a representation of a theory or a part of a theory

Explanation:

A model is different from theory because is a more applied and empirical representation of a situation while the theory is more abstract. An economic model is a simplified prediction of a complex and real economic behavior, it uses variables to analyze different scenarios, it also uses logical and quantitative relationships between economic processes, is usually mathematical. <em>The results of these models can lead to a new investigation, theorization or to prove theories.</em>

I hope you find this information useful and interesting! Good luck!

5 0
3 years ago
A company's inventory records indicate the following data for the month of January: Jan. 1 Beginning 180 units at $9 each Jan. 5
katovenus [111]

Answer:

The amount of cost of goods sold for January:

                                     LIFO          FIFO      Weighted Average

Cost of goods sold    $4,520     $4,420       $4,452

Explanation:

a) Data and Calculations:

Date     Description    Units          Unit Cost/Price Total Cost Total Revenue

Jan. 1    Beginning       180 units at $9 each           $1,620

Jan. 5   Purchased      170 units at $10 each            1,700

Jan. 9   Sold              (300) units at $35 each                             $10,500      

Jan. 14  Purchased    200 units at $11 each            2,200

Jan. 20 Sold              (150) units at $35 each                                5,250

Jan. 30 Purchased    230 units at $12 each           2,760

Total                    780 / 450                                   $8,280         $15,750

b) Cost of goods sold:

LIFO:

Jan. 9   Sold  (300) 170 units at $10 = $1,700

                               130 units at $9 =      1,170

Jan. 20 Sold  (150) 150 units at $11 =    1,650

Cost of goods sold =                          $4,520

c) FIFO:

Jan. 9   Sold  (300) 180 units at $9 = $1,620

                               120 units at $10 =  1,200

Jan. 20 Sold  (150) 50 units at $10 =     500

                              100 units at $11 =    1,100

Cost of goods sold =                        $4,420

d) Weighted-Average:

Jan. 9   Sold  (300) 300 units at $9.49 = $2,847

Jan. 20 Sold  (150) 150 units at $10.70 =    1,605

Cost of goods sold =                                $4,452

Weighted Average Cost at each point of sale:

$9.49 = ($1,620 + $1,700)/350 units

$10.70 = (($9.49*50) + $2,200)/250 units

e) LIFO = Last In, First Out is based on the assumption that the items sold are from the last inventory purchased instead of the first.

FIFO = First In, First Out is based on the assumption that the items sold are from the first inventory instead of the last.

Weighted-Average: This method averages the cost of inventory to determine the unit cost.

Under the perpetual inventory system, the inventory costs are recorded immediately after an inventory transaction and not at the end of a period.

6 0
3 years ago
What is one data point that shows a good propensity to pay the loan back?
miss Akunina [59]

Answer:

A data point that shows a good propensity of a borrower to pay back loans is location efficiency and or stability. This data point projects a 6% increase whether or not the borrower will repay the loans he/she borrowed.

8 0
3 years ago
Read 2 more answers
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