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Citrus2011 [14]
3 years ago
9

Andrew sold IBM stock to his sister Susan for $6,000. Andrew purchased the stock two years ago for $8,000. Susan sold the stock

through her broker for $7,300. How much gain or loss did Susan recognize on the sale?
a. $700 loss
b. No gain or loss
c. $1,300 gain
Business
1 answer:
klasskru [66]3 years ago
6 0

Answer:

c. $1,300 gain

Explanation:

In this scenario, Susan recognized a $1,300 gain on this sale. This is because Susan originally purchased the stock for a total price of $6,000. When she sold the stock, she sold it for a higher price than what she originally paid for it therefore recognizing a gain. To calculate this gain we simply subtract her initial purchase price from her selling price of the stock which would give us a $1,300 gain.

$7,300 - $6,000 = $1,300

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Calculate the opportunity cost of capital for a firm with the following capital structure: 30% preferred stock, 50% common stock
expeople1 [14]

Answer:

11.21%

Explanation:

the opportunity cost of capital can be determined by calculating the weighted average cost of capital

WACC = [weight of equity x cost of equity[ + [weight of debt x cost of debt x (1 - tax rate)] + [weight of preferred stock x cost of preferred stock]

0.3 x 10.76 + (0.5 x 13.91) + (0.2 x 0.65 x 7,87)

3.228 + 6.955 + 1.231

11.21%

5 0
2 years ago
Which of the following statements is true regarding the cumulative translation adjustment? Select one: Changes in the cumulative
vaieri [72.5K]

Answer:

The true statement is "The cumulative translation adjustment account affects the amount of gain or loss reported upon the sale of a foreign subsidiary".

Explanation:

The current technique needs that each one quality and accountability books be interpreted at this rate whereas shareholders’ justice accounts are interpreted at ancient altercation rates. The distinction is mirrored finished the additive conversion alteration, therefore the quantity of improvement or loss according upon the auction of a distant secondary to the additive conversion alteration.

8 0
3 years ago
Suppose Ruston Company had the following results related to cash flows for 2020: Net Income of $9,100,000 Adjustments from Opera
elena-s [515]

Answer:

The Net Cash Flow is $9,300,000.

Explanation:

A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:

                             Ruston Company

                       Statement of Cash Flows

                              For the Year 2020

<u>Details                                                                    $'000    </u>

Net Income                                                            9,100

Adjustments from Operating Activities            <u>    1,100  </u>

Net Cash Flow from Operating Activities         10,200

Net Cash Flow from Investing Activities           (4,300)

Net Cash Flow from Financing Activities of   <u>    3,400  </u>

Net Cash Flow                                                <u>     9,300  </u>

Since the amount is in thousands, that implies that  the Net Cash Flow is $9,300,000.

7 0
2 years ago
(BRAINLIEST FOR WHO GETS IT CORRECT) Processing the message and providing some type of feedback is a(an)
arsen [322]

receipt of message. i think :) hope this helps

3 0
2 years ago
At Midland Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The uni
amid [387]

Answer: $80

Explanation:

Since the fixed costs are $180,000 and variable costs are $540,000, then the total cost will be:

= Fixed cost + Variable cost

= $180000 + 540000

= $720000

Since there are 9000 units, then the unit sales price will be:

= $720000 / 9000

= $80

The unit sales price is $80

7 0
3 years ago
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