Answer:
Option A. $15,400
Explanation:
The net deduction allowed as an charitable contributions are as under:
$
1. ABC Cop. stock
Cost $6000
FMV <u>$22000</u> $16000
2. Personal Clothing Items
Cost $1000
FMV <u>$400 </u> <u> ($600) </u>
Net Deduction $15,400
The amount that qualifies as charitable contribution for the year is $15400.
Answer:
Letter A is correct.<u> </u><em><u>Unsystematic</u></em><em> </em>risk.
Explanation:
Unlike systematic risk, which is an inherent market risk, unsystematic risk is inherent in a specific sector or company.
The case in point concerns the investment of former AlphaEnergy employees, which is a unsystematic risk, as the investment risk in single-company shares includes regulatory changes, management changes, loss of market due to competition and withdrawal of the product from the market.
To reduce this type of risk, investors should seek diversification in their stock portfolio.
We are asked to solve for the interest during the year given that it is compounded monthly, we are given with the formula A = P(1+r)^n. The solution is shown below;
A = P (1+r)^n
A = $5,000 (1+ 3.5/12)^(12*1)
A = $5,000 (1.000292)^12
A = $5,177.84
Hope this helps!
