2) as opinions should be left out of factual articles and credible sources
Answer:
The correct answer is C) purchase Canadian dollar put options.
Explanation:
A sale option (or put option) gives its holder the right - but not the obligation - to sell an asset at a predetermined price until a specific date. The seller of the option to sell has the obligation to buy the underlying asset if the holder of the option (buyer of the right to sell) decides to exercise his right.
The purchase of put options is used as hedging, when price falls are anticipated in shares that are held, since by means of the purchase of Put the price is established from which money is earned. If the stock falls below that price, the investor earns money. If the share price falls, the profits obtained with the sale option compensate in whole or in part for the loss experienced by said fall.
Losses are limited to the premium (price paid for the purchase of the sale option). Earnings increase as the share price falls in the market.
Answer:
A) $3,429
Explanation:
Bonus capital paid by the new shareholders will be distributed among the Old Partner on the basis of their old sharing ratio
Capital Balance of Peter = $38,000
Settlement amount = $20,000
As we does not have revised profit ratios, Peter and Chris will share profit on their old ratios.
Remaining balance of Gary's capital = $26,000 - $20,000 = $6,000
Peter Share = 4/7 x $6,000 = $3,429
Answer:
$1,109
Explanation:
The computation of the yearly earnings is shown below:
Yearly earnings = Savings × Annual interest rate
= $9,900 × 11.2%
= $1,109
For computing the yearly earnings, we multiplied the saving with the annual interest rate so that the estimated amount can come
Answer:
Journal Entry to record the transaction
Dr. Work in Process Department I $280,000
Dr. Work in Process Department II $300,000
Dr. Manufacturing Overhead $8,000
Cr. Material Inventory $588,000
Explanation:
The direct material is charged to the work in process account, because it is an direct expense and all the direct expenses are charged to the work in process account like indirect material, indirect labor etc.
The indirect material is charged to manufacturing overhead account because all the indirect expenses are charged to the manufacturing overhead account like indirect material, indirect labor etc.
These inventories are issued from the material inventory, so to deduct the issued value from the material inventory account, the total value of direct and indirect issuance is credited to record the effect.
