What is a skill ?

15 points) Assume the following information regarding U.S. and European annualized interest rates: Currency Lending Rate Borrowi

Masja [62]

Answer:

The Trainor Bank's dollar profit from speculating if the spot rate of the euro is in fact $1.10 in 90 days is $5,79,845

Explanation:

Bank Z borrow = €20 million

Spot rate 1€ = $1.13

Convert € in to $

€20 million *1.13 = $22.60 million

Lend $2,26,00,000 at interest rate of 6.73% for 90 days ( Assume total number of days in a year is 360)

= $2,26,00,000 + $2,26,00,000*(90/360)*6.73%

= $2,29,80,245

We need to find the euro to be repaid = €2,00,00,000 + €2,00,00,000*7.28%*(90/360)

= €2,03,64,000

To be repaid in $:-

€2,03,64,000*1.10 = $2,24,00,400

Profit from speculating in $ = $2,29,80,245 - $2,24,00,400

= $5,79,845

Therefore, The Trainor Bank's dollar profit from speculating if the spot rate of the euro is in fact $1.10 in 90 days is $5,79,845

5 0

3 years ago

Assume that at the end of 2018, Clampett, Inc. (an S corporation) distributes long-term capital gain property (fair market value

boyakko [2]

Answer: Income J. D. recognize as a result of the distribution: $45000

Explanation:

First we'll compute the share of gain on distribution,

Share of the gain on the distribution = $40,000 - $25,000

i.e. $15,000

Now , we'll add the increase in basis from gain from property distribution,

i.e. ($15,000 original basis + $15,000 increase in basis from gain from property distribution)

So income to be recognized :3000+15000 = $ 45000

6 0

3 years ago

Read 2 more answers

Sophia spends most of her time as head of the engineering department on keeping the engineers “on task.” She distributes daily r

Ierofanga [76]

Answer: Sophia demonstrates high structure, low consideration kind of leadership style based on the research from Ohio State University.

Under high structure, low consideration; the individual renders particular operating instructions and closely oversee the performance of other employees.

Therefore, the correct option is (c) High structure, low consideration

4 0

4 years ago

On December 1, 2016, Hogan Co. purchased a tract of land as a factory site for $780,000. The old building on the property was ra

FromTheMoon [43]

Answer:

C) $868,000

Explanation:

The costs associated to the purchase of the tract of land were:

Purchase price of land = $780,000
Demolition of old building = $70,000
Legal fees = $10,000
Title guarantee insurance = $16,000
Proceeds from sale of salvaged material = $8,000

The total cost of the land = purchase price + demolition costs + legal fees + title guarantee insurance - proceeds from salvaged materials = $780,000 + $70,000 + $10,000 + $16,000 - $8,000 = $868,000

The demolition costs are capitalized to land because they are a necessary cost to bring the land into its intended condition. Legal fees and title guarantee are necessary to avoid legal problems.

6 0

3 years ago

Spruce Company uses a job costing system. Spruce Company's schedule of cost of goods manufactured showed the following amounts f

julsineya [31]

Answer:

The amount of allocated manufacturing overhead costs for August is $47,150

Explanation:

For computing the allocated manufacturing overhead costs, first we have to compute the direct labor hours which is shown below:

= Direct labor cost ÷ per hour rate

= $73,800 ÷ $36

= 2,050 hours

Now the allocated manufacturing overhead costs equals to

= Direct labor hours × Manufacturing overhead rate

= 2,050 hours × $23

= $47,150

5 0

3 years ago