What tax event must take place when a taxpayer receives a Form 1099-A?

Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles. Her latest speculative position is to profit fro

VARVARA [1.3K]

Answer:

Cachita should buy put on yen

Explanation:

Given:

The current spot rate = ¥120.00/$

in US $/¥ = $\frac{\textup{1}}{\textup{120.00}}$

or

in US $/¥ = 0.0083

Maturity time = 90 days

Put on Yen Call on Yen

Strike Price 125/$ 125/$

Strike Price in $/¥ 0.008 0.008

Premium 0.00003/$ 0.00046/$

Therefore,

Here the strike price for put on Yen and call on Yen are same

but the premium for Put on Yen is less than the premium for the call on Yen

Therefore, Cachita should buy a put on yen to get the profit from the rise of the dollar

5 0

3 years ago

Sonja is writing an essay about becoming a preschool teacher. Complete it by correctly filling in the missing information.

stepladder [879]

Answer:

Out of all the career choices in the Human Services career cluster;

I’ll need to complete high school and get an associate's degree (or bachelor's)

Explanation:

The occupation of a preschool teacher is in the Human Services career cluster. This cluster includes children education, social and community occupations and counseling.

In order to be eligible for the preschool teacher job, Sonja needs to obtain an associate's or bachelor degree from an academic institution that prepares candidates well enough to become licensed preschool teachers.

7 0

3 years ago

Read 2 more answers

Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at Group of answer choices prices

Yakvenalex [24]

Answer:

the equilibrium price but not above or below the equilibrium price.

Explanation:

At equilibrium price, quantity demanded equals quantity supplied. At this point, buyers are able to buy all they want to buy and sellers are able to sell all they want

Above equilibrium price, there would be a surplus. the quantity supplied would exceed the quantity demanded. Sellers would not be able to sell all they want in this case

Below the equilibrium price, there would be a shortage. the quantity demanded would exceed the quantity supplied. buyers would not be able to buy all they want

8 0

3 years ago

The Nearside Co. just paid a dividend of $1.20 per share on its stock. The dividends are expected to grow at a constant rate of

masha68 [24]

Answer and Explanation:

The computation is shown below:

a. Current price is

= D1 ÷ (Required return - Growth rate)

= ($1.20 × 1.04 ÷ (0.1 - 0.04)

= $20.8

b. Now the price in three year is

P3 = Current price × (1 + Growth Rate)^3

= $20.8 × (1.04)^3

= $23.40

c. For price in 10 year it is

P10 = Current price × (1 + Growth Rate)^10

= $20.80 × (1.04)^10

= $30.79

We simply applied the above formula

6 0

3 years ago

On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 22 million of its $1 par common

Vikentia [17]

Answer:

1.$92.4million

2. January 1, 2021

No journal entry

3. December 31, 2021

December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

4. December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

5. December 31, 2023

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

6. December 31, 2023

Dr Paid in capital -restricted stock $92.4million

Cr Common stock $22 million

Cr Paid in capital-excess of par $70.4 million

Explanation:

1. Calculation to determine the total compensation cost pertaining to the RSUs

Total compensation cost =$4.20 fair value per share × 22 million shares represented by RSUs granted

Total compensation cost=$92.4million

Therefore the total compensation cost pertaining to the RSUs is $92.4million

2. Preparation of the appropriate journal entry to record the award of RSUs on January 1, 2021

January 1, 2021

No journal entry

3.Preparation of the appropriate journal entry to record compensation expense on December 31, 2021

December 31, 2021

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

4. Preparation of the appropriate journal entry to record compensation expense on December 31, 2022

December 31, 2022

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

5. Preparation of the appropriate journal entry to record compensation expense on December 31, 2023.

December 31, 2023

Dr Compensation expense $30.8million

Cr Paid in capital -restricted stock $30.8million

($92.4million/3 years)

6. Preparation of the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023.

December 31, 2023

Dr Paid in capital -restricted stock $92.4million

Cr Common stock $22 million

Cr Paid in capital-excess of par $70.4 million

($92.4million-$22 million)

6 0

3 years ago