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LenaWriter [7]
3 years ago
9

Ivanhoe Company sublet a portion of its warehouse for five years at an annual rental of $71100, beginning on May 1, 2020. The te

nant, Barbara Jones, paid one year's rent in advance, which Ivanhoe recorded as a credit to Unearned Rent Revenue. Ivanhoe reports on a calendar-year basis. The adjustment on December 31, 2020 for Ivanhoe should be:________.
Business
1 answer:
Olenka [21]3 years ago
8 0

Answer and Explanation:

The adjustment should be as follows

Unearned Rent Revenue    $47,400

    To Rent Revenue   $47,400

(Being recording of revenue earned is recorded)

Here unearned rent revenue is debited as it decreased the liabilities and the rent revenue is credited as it increased the revenue. Also liabilities and revenue contains the normal debit balance

The working is shown below:

= $71,100 × 8 months ÷ 12 months

= $47,400

The eight months are calculated from May 1 to December 31

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If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is:_________
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If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is: 400.

<h3>What is maximum gain potential/capital gain?</h3>

When an investor invests in or sells put option on stocks she owns, she is selecting a good approach to hedge against loss or bring additional funds in her account. Whenever a seller invests cover call options, this is the most frequent form.

Now according to the question-

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Therefore, the maximum gain potential is 400.

To know more about the maximum gain/capital gain, here

brainly.com/question/1381751

#SPJ4

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B is the answer good sir<span />
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I think the most approximate answer would be B.


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