Arjun has joined a work team that assembles products. What is the best way for Arjun to build the team's trust in him?

Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2020, for $115,000. On December 12, 2020, Kevin purchas

salantis [7]

Answer:a)$195,500 b) $10,735 c)$6,900

Explanation

a)adjusted basis of Kevin’s Bluebird stock on December 31, 2020?

1,000 shares was bought for $115,000

Therefore it was bought at $115 per share

Also

750 shares was bought at $80,500 and therefore bought at 107.33 per share

So in total of 1750 shares, He spent $195,500 ($115,000+ $80,500)

b.On December 12, 2020,he bought shares at 107.33 per share

500 shares would be 500 x $107.33=$53, 665

Therefore, Kevin’s recognized gain or loss from the’ sale of Bluebird stock on March 1, 2021 would be

$64,400- $53, 665 = $10,735

c.Assuming he cannot identify the shares sold, then we can say they are sold on a FIFO ( first in first out) basis. So we would consider the shares bought on October 3, 2020

so we have that

500 x $115=$57,500

$64,400 - $57,500 = $6,900

7 0

3 years ago

Determine if the people in the example have benefited (i.e., are winners) or have been harmed (i.e., are losers) by unexpected i

nevsk [136]

Answer:

Winners

3rd National, a bank that loaned many people money for home purchases.

Losers

Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.

Herb, who keeps his savings in an old coffee can.

Joy, who has borrowed $40,000 to pay her college education.

The US federal government which had almost $15 trillion in debt in 2011.

Explanation:

When unexpected inflation occurs, the usual plan to by Monetary Institutions of a country is raising the interest rates.

By doing that, they want to stop it or slowly decelerate it.

So that it becomes more expensive to take a loan, the idea is to reduce consumption.

In Economics, it's a bad scenario after all. Few winners. Many losers.

So, let's examine them

Winners

3rd National, a bank that loaned many people money for home purchases.

At first, The 3rd National is going to be winning since the value of the debt will rise, depending on the type of contract and an increase in the interest rate will demand corrections on the monthly payments. But on the other hand, the number of default clients and overdue installments will raise for sure.

Losers

Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.

Inflation reduces the real buying value of her checks. And her pension can't grow otherwise this will feed the inflation too.

Herb, who keeps his savings in an old coffee can.

Since his money is not invested then He's not having any earning that might give him some compensation. So his money is even more devalued.

Joy, who has borrowed $40,000 to pay her college education.

Depending on the contract Joy might be sleepless. Either her monthly payments will become more expensive or She may experience difficulties because of the weekly growing prices.

The US federal government had almost $15 trillion in debt in 2011.

Certainly, the president and his secretary will have to address the fact that due to inflation and the chosen medicine make the nation's debt up to the sky. They must renegotiate the payment deadlines.

7 0

3 years ago

What can a person do to help increase their credit score?

goblinko [34]

Answer peoples questions and do the challenges

7 0

3 years ago

Cost of Direct Materials Used in Production for a Manufacturing Company

strojnjashka [21]

Answer:

$855,000

Explanation:

The Raw Materials T - Account can be used to determine the cost of direct materials used in production using the missing balance technique as follows :

Raw Materials T - Account

Debit :

Beginning Balance $279,000

Purchases $828,000

Total $1,107,000

Credit :

Ending Balance $252,000

Transferred to Production (<em>Balancing figure</em>) $855,000

Total $1,107,000

3 0

4 years ago

Presently, Stock A pays a dividend of $2.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 p

Flura [38]

Answer:

In order to find the price of a stock which has different growth rate at different periods, we need to find the price at a time when the growth rate slows down after the initial burst of growth and is stable, in this case its in the 4th period.

Year 4 dividend = 2.07

Growth rate (G)= 8%

Required return (R)= 12%

DDM formula for stock price = D*(1+G)/R-G

2.07*(1+0.08)/0.04

=55.89

The maximum that you should be willing to pay for the stock 4 years from now is $55.89 but in order to find out what the maximum we should pay for the stock now, we need to discount this price 4 years back to the present value using the required return of 12 %

so 55.89/1.12^4=35.52

The maximum that you should be willing to pay for the stock now is $35.52

Explanation:

3 0

4 years ago