Answer:
d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.
Explanation:
A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.
A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.
Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid
wherein CMP= Current Market Price
A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.
Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.
Determined by negotiation is the amount of earnest money deposit paid by the purchaser.
Answer:
c. Under applied $ 1,340
Explanation:
Computation of predetermined overhead rate
Estimated manufacturing overhead $ 594,960
Estimated direct labor hours 22,200 hours
Predetermined overhead rate per direct labor hour
$ 594,960 / 22,200 hours $ 26.80 per hour
Actual Direct Labor hours 22,150 hours
Applied overhead at predetermined direct labor rate
$ 26.80 * 22,150 hours $ 593,680
Actual overhead <u>$ 594,960</u>
Overhead under applied $ ( 1,340)
Answer:
The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.
Answer:
Journal entries to record the 2023 amortization expense for intangible assets.
Date Accounts Titles and Explanation Debit Credit
Dec 31 Amortization Expense—Patents $14,180
($71,800*1/10 + $45,000 * 1/9
+ $40,000*1/10*6/12)
Patents $14,180
(To record amortization of patents)
Dec 31 Amortization Expense - Copyrights $6,335
($50,500*1/10 + $257,000*1/50*3/12)
Copyright $6,335
(To record amortization of copyrights)
