Answer:
$5,300
Explanation:
A customer buys 1 FLB Oct 50 call at 3 and she exercises the option to buy 100 shares
= 3 × 100 shares
= $300
The customer bought 100 shares at a price of $50
= 50 × 100 shares
= $5,000
Therefore, the cost basis of the 100 shares can be calculated as follows
= $300 + $5,000
= $5,300
Hence the cost basis of the 100 shares is $5,300
Answer:
D.) All the temporary accounts
Explanation:
The closing entry process closes or "zeroes out" the temporary accounts and transfer their balances to the retained earnings account.
Theses temporary accounts are closed or reset at the end of every year. Companies also call this as the closing of the books.
Temporary accounts includes:
1. Revenue & Gain Accounts
2. Expenses & Losses Accounts
3. Dividends & Withdrawal Accounts
4. Income Summary accounts (if used)
Answer and Explanation:
That since MC = zero, but Price charged is greater than MC, Therefore the market is characterized by imperfect Competition, because in perfect competition, the price = MC So that the market should have some degree of monopoly power.