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Stels [109]
3 years ago
13

You sold two EUR futures contract at the closing price on 3/01. Each EUR futures contract requires the delivery of EUR125,000. S

uppose, the initial and maintenance margin for each EUR futures contract are $1,500 and $1,000, respectively. Assume that you do not withdraw from your margin account during this period, but that you do meet your margin calls if you get any
Date 3/01 3/02 3/03 3/04
EUR Spot Price $1.3579 $1.3527 $1.3588 $1.3580
July EUR Futures Contract Price $1.3750 $1.3782 $1.3827 $1.3713

The profit / loss posted to your account at the close of 3/02 is ______
Business
1 answer:
Lyrx [107]3 years ago
4 0

Answer:

What

Explanation:

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Sarah has investments in four passive activity partnerships purchased several years ago. Last year the income and losses were as
iogann1982 [59]

Answer:

Explanation:

In last year, Sarah couldn't deduct anything against non passive income and need to allocate the $20,000 net loss between the three loss activities.

Activity                      Income (Loss)

A                                 30,000

B                                 (30,000)

C                                  (15,000)

D                                   (5,000)

Net Passive Loss         (20,000)

Allocation of net passive loss to Activity B,C and D.

Activity B (30/50 * $20,000)    ($12,000)

Activity C (15/50 * $20,000)         ($6,000)

Activity D (5/50 * $20,000)          ($2,000)

Suspended losses Total        ($20,000)

In current year, Sarah has a net gain of $10,000 from sale of Activity D. Sarah can set off $2,000 suspended loss from the activity and the current year’s loss of $1,500 from activity across $10,000 gain. Further, the balancing net gain of $6,500 (10,000-2,000 -1,500) from the sale may be utilized to cover passive losses from the other activities.

6 0
3 years ago
Will’s Whitewater Rafting sold 3 acres of land used in the business. The sales price was $6,000 and the adjusted basis of the la
Advocard [28]

Answer:a. 1,800;

b. 1,200 ($1,800/$6,000 = 30%; $4,000 x .30 = $1,200);

c. 600 (30% x $2,000 = $600)

Explanation:

In tax accounting, adjusted basis refers to the original cost, or the net cost of an asset, after adjusting various tax-related items normally reduced by depreciation deductions.

Given:

Selling Price(S.P) = $6,000

Adjusted Basis (A.B) = $4200

The gain realized from the sale of the land would be:

= S.P - A.B = $(6,000-4200)= $1,800

Now, we calculate the percentage profit on gain realized to enable ease of gain calculation for fragmented payments.

The percentage gain (P.G) is:

(S.P-A.B)/S.P * 100 = (6,000-1,800)/6000 * 100

P.G = (1,800/6,000) * 100 = 30%

Therefore we say that:

Recognized Gain on current year = Amount paid * P.G = $(4,000*0.3) = $1,200

And

Recognized Gain next year = Amount paid * P.G = $(2,000 * 0.3) = $600

Note: P.G is percentage gain.

3 0
3 years ago
What is it called when demand and supply are equal in price and quantity?
kirill115 [55]
Often, this is referred to as an equilibrium.
I hope I helped!
4 0
3 years ago
Identify and analyze a department in your organization that experiences frequent equipment or process failures. If you are not c
lord [1]

Answer:

Find the explanation below.

Explanation:

The name of my organization is Prime Plc. known for the production of confectionaries. The Production Department in my organization has been experiencing frequent equipment failures quite recently. A close investigation showed that the delays were caused by a breakdown of the sugar mills, mixers and, coating machines. This has resulted in delays in the production process. To improve these failures, I believe that the organization should:

1. Employ Technicians who can quickly carry out repair work on these machines when they breakdown instead of outsourcing the repair work for this would take a longer amount of time to get the machines up and running.

2. Introduce the periodic maintenance of these machines. Machines are subject to wear and tear, so I would suggest that the maintenance of these machines is carried out within intervals of three months.

3. Train the production personnel on the proper usage of these machines. Production personnel should be updated on current and effective ways of handling machines so as to guarantee their safety and longer use.

4. Make provisions for backup machinery and equipment. The organization would do well to purchase backup equipment especially for machines that the organization cannot do without so that in the event of an equipment failure, the production process would not be stalled.

When these measures are considered, there would be a significant improvement in the production department.

8 0
2 years ago
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar)
timama [110]

Question

you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:

Year     cashflow

0           -100

1-10            15

0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project

Answer:

NPV= -$32.58

Explanation:

The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:

Ke= Rf +β(Rm-Rf)  

Ke =? , Rf- 5%,, Rm-15%, β- 1.30

Ke=5% + 1.30× (15-5)=  18%

The NPV = Present value of cash inflow - initial cost

 =  A×(1-(1+r)^(-10)/r  - initial cost

A- 15, r-18%

NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58

NPV = -$32.58

5 0
3 years ago
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