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anzhelika [568]
2 years ago
11

A worthless security had a holding period of six months when it became worthless on December 10, 2020. The investor who had owne

d the security had a basis of $20,000 for it. Which of the following statements is correct?
a. The investor has a long-term capital loss of $20,000.
b. The investor has a short-term capital loss of $20,000.
c. The investor has a nondeductible loss of $20,000.
d. The investor has a short-term capital gain of $20,000.
Business
1 answer:
mariarad [96]2 years ago
6 0

Answer: B. The investor has a short-term capital loss of $20,000.

Explanation:

A short-term loss occurs when a deficit is realized when there's a sale of an asset which has been held by the person for a period of one year or less.

In this case, since the security was worthless, it's a loss and was also help for six months which is less than one year, then it's a short term capital loss.

Therefore, the correct option is B

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A. If a wage of $10.25 were to be imposed on this market, such that the market was not longer strictly competitive, what would b
enot [183]

Solution :

Given the wage = $ 10.25 that is to be imposed to the market.

Given equation :

L_D = 500 – 45W and L_S = -200 + 25W

If the wage of $10.25 is to be imposed to the market, the value of the labor supply can be found by putting the value of the wage in the labor supply equation.

At W = 10.25

Putting this value in the above equation, the labor supply would be

L_S = -200 + 25W

L_S = -200 + 25(10.25)

     = 56.25

When W = 10.25, the value for the labor demand can be found by :

L_D = 500 – 45W

L_D = 500 – 45(10.25)

L_D = 500 – 461.25

L_D = 38.75

Therefore, the labor demand and the labor supply model is

L_D = 400 - 45 x 10.25

L_S = -200 + 25 x 10.25

6 0
2 years ago
Floor plan loan is a type of short-term loan to finance high priced inventory in which the purchased inventory is placed as coll
topjm [15]

Answer:

Consider the following explanation.

Explanation:

1. True. It is generally seen in the automobile market. The purchased inventory serves as the collateral for the loan.

2. True. The higher capital provides support for the continued solvency of these comapanies.

3. False, The federal reserve has the right and authority to regulate finance companies.

4. This statement is true.

5. True. They also charge higher interest rates than banks for bearing the risk of poor credit of these borrowers.

5 0
2 years ago
73 points I will give if you like and comment 73 points
LuckyWell [14K]

Answer:

i b b beg your pardon

Explanation:

5 0
2 years ago
Read 2 more answers
What country borders the caspian sea, the persian gulf, and the gulf of oman?.
wel

Iran, is the country that borders the Caspian sea, the Persian gulf, and the gulf of Oman.

<h3>Which countries lie along the Caspian sea, the Persian gulf and the gulf of Oman?</h3>

Iran country lies in the Middle-East of the Iraq and Pakistan, that borders the Caspian sea, the Persian gulf, and the gulf of Oman.

The inland sea is connected to the Gulf of Oman from the East and the countries that lie along the Persian Gulf and the Gulf of Oman are Oman, Iraq, Kuwait, Saudi Arabia, etc.

Strait of Hormuz connects the the Persian Gulf to the Arabian Sea.

Learn more about the Persian gulf and the gulf of Oman here:-

brainly.com/question/4694666

#SPJ1

7 0
2 years ago
Ralph buys a perpetuity due paying 500 annually. He deposits the payments into a savings account earning interest at an effectiv
Leto [7]

Answer:

X = 1523

Explanation

Perpetuity due = (C/r) + C. Where Annual payment C =500, Annual effective interest rate = 10%

Perpetuity due = (500/10%) + 500 = 5500

Value of perpetuity due will remain same after 10 years

Money in saving account can be calculated with FV of an Annuity due formula

FV = C*(1+r) *{(1+r) ^n−1} / r

Where n = 10 years

FV = 500*(1+10%) * {(1+10%)^10 - 1} / 10%

FV = 500*1.10 * [1.10^10 - 1 / 0.10}

FV = 550 * 1.5937424601/0.10

FV = 550 * 15.937424601

FV = 8765.58353055

FV = 8766

Total proceeds = 5500 + 8766 = 14266

Now this proceed is the present value for annual payment of X calculation  . Formula of the present value (PV) of annuity due: PV = X * [1- (1+r) ^-n / r] * (1+r) : Where  PV = 14266, Annuity payment X = ?, Interest rate r = 10%, Period of annuity = 20 years.

1.10^-20

PV = X * [1- (1+r)^-n / r] * (1+r)

14266 = X * (1 - (1+10%)^-20 / 10%) * (1+10%)

14266 = X * [1 - 0.14864362802/0.10]*1.10

14266 = X * [8.5135637198*1.10]

14266 = X * 9.3649

X = 14266 / 9.3649

X = 1523.347820051469

X = 1523

3 0
2 years ago
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