Answer:
$100
Explanation:
The inherent value of a share or option or any other asset which an investor expects to have. In options it refers to the difference between it's current and the strike price.
The intrinsic value of options is calculated using the following formula:
Intrinsic value of option = Number of share options × ( Market price of the stock on the date of the grant - exercise price of the share option )
Intrinsic value of option = 100 × ( $10 - $9 )
Intrinsic value of option = 100 × $1
Intrinsic value of option = $100
So, the intrinsic value of the call option at the time of the initial investment was $100.
Answer:
Debit to bad debt expense for $3,648
Explanation:
This is because the company needs to show the total amount in the Allowance for doubtful accounts as credit balance. It means that if for instance the balance today is $1,057 you'll need a new entry to adjust the balance with the bad debt.
It means that the entry must be a debit in bad debt expense for $3,648 while the corresponding credit goes to allowance for doubtful accounts.
Answer: The four types of economic utility are form, time, place and possession. "Utility" in this context refers to the value, or usefulness, that a purchaser receives in return for exchanging his money for a company's goods or services.
Answer:
$5,250
Explanation:
The child tax credit provides a $2,000 tax credit for every qualifying child under 16, but the amount starts to phase out as the married couple's income is higher than $400,000.
The tax credit phases out $50 for every $1,000 of income over the $400,000 threshold: $415,000 - $400,000 = $15,000 x $50/$1000 = $750 phase out.
total child tax credit = ($2,000 x 3 children) - $750 = $6,000 - $750 = $5,250
