"In terms of the exercise, what price will the client report for tax purposes in relation to the price at which the stock is sold to the buyer of the call?"

Answers

Answer 1
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Related Questions

Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey budgeted its overhead costs at $220,000, direct labor hours at 55,000, and machine hours at 20,000. Actual overhead costs incurred were $233,250, actual direct labor hours were 62,000, and actual machine hours were 15,000. If the PDOH rate uses machine hours as the cost driver, what is the total amount credited to the overhead account control account

Answers

Answer:

$165,000

Explanation:

Calculation for what is the total amount credited to the manufacturing overhead account for the year for Grey

First step is to calculate Predetermined overhead rate using this formula

Predetermined overhead rate = Estimated overhead costs / Estimated machine hours

Let plug in the formula

Predetermined overhead rate = $220,000 / 20,000 machine hours

Predetermined overhead rate= $11

Second step is to calculate Total amount credited to the factory overhead account for the year for Grey

Using this formula

Total amount credited to the factory overhead account for the year for Grey = Predetermined overhead rate × Actual machine hours

Let plug in the formula

Total amount credited to the factory overhead account for the year for Grey= $11 × 15,000 machine hours

Total amount credited to the factory overhead account for the year for Grey = $165,000

Therefore the Total amount credited to the factory overhead account for the year for Grey will be $165,000

Susan won $2,000 at the blackjack tables on her birthday. Her winnings are an example of:________.
a. an in-kind transfer.
b. transitory income.
c. life-cycle income.
d. permanent income.

Answers

Answer:

B. Transitory income.

Explanation:

As the name sounds, it is seen to be a form of income that is said to be anticipated. This form of income does not play key roles in the standard of living of the said person. This income is clearly a short-lived kind as it cannot hold a person or family towards a certified period of time. Also in many cases, economists are seen to believe that people base their consumption on their permanent income, therefore, inequality in consumption is one gauge of inequality of permanent income; making consumption less effectective, as transitory changes in income, they are more equally is current income.

lhow do I work brain the brain ​

Answers

open the brain and release its contents

On January​ 1, 2018, Brazos Company purchased equipment and signed a​ six-year mortgage note for​ $97,000 at​ 15%. The note will be paid in equal annual installments of​ $25,631, beginning January​ 1, 2019. On January​ 1, 2019, the journal entry to record the first installment payment will include a​ ________. ​ (Round your answer to the nearest whole​ number.) A. credit to Mortgage Payable for​ $97,000

Answers

Answer:

the original journal entry should be:

January 1, 2018, equipment purchased

Dr Equipment 97,000

    Cr Notes payable 97,000

accrued interest on December 31 2018 should be:

Dr Interest expense 14,550

    Cr Interest payable 14,550

the first installment should be recorded as:

January 1, 2019, first installment paid on notes payable

Dr Interest payable 14,550

Dr Notes payable 11,081

    Cr Cash 25,631

A coupon on a 2-liter bottle of Pepsi, offering $1.00 off on a bag of potato chips, is which type of coupon:_____

a. cross-ruffing
b. scanner-delivered
c. response-offer
d. instant-redemption

Answers

Answer: a. cross-ruffing

Explanation:

Cross-ruffing coupons are coupons that are offered to a person buying a good on another good to encourage them to buy that other good as well. These are usually offered on goods produced by the same company or companies that have a relationship with each other.

They are a brilliant marketing ploy to result in one relating goods to another to boost sales. Offering a coupon on a bag of potato chips upon buying a bottle of Pepsi is there a cross-ruff coupon.

The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50 per share for months. The price of a 3-month put option with an exercise price of $50 is $4. If the risk-free interest rate is 10% per year, what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $50 if it is at the money

Answers

Answer:

$5.18

Explanation:

Calculation for call option

Using this formula

Call option=Put option + Exercise price-[Exercise price/(1+Risk-free interest rate)^Time

Let plug in the formula

Call option= 4 + 50 - [50/(1+.10)^1/4]

Call option= 4 + 50 - [50/(1.10)^1/4]

Call option= $5.18

Therefore what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $50 if it is at the money is $5.18

thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

Answers

Answer:

E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

Explanation:

Options are "A. cultural, lifestyle, and demographic changes, B. the birth of new industries, new knowledge, and disruptive technologies, C. weather, climate change, and water shortages, D. interest rates, exchange rates, unemployment rates, inflation rates, and economic growth, E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently."

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

The strategy decision making about the industry and competitive conditions involve evaluating the prices, buyer sensitivity to the prices, serviceability & frequency.

Use this information to answer the question. All numbers are in millions.
Population of the nation 125
Size of the labor force 75
Number of employed workers 50
Number of unemployed workers 25
What is the unemployment rate for this nation?
a. 5 percent
b. 20 percent
c. 25 percent
d. 33 percen

Answers

Answer:

25 percent

Explanation:

Assume that Smith deposits $500 in currency into her checking account in the XYZ Bank. Later that same day, Jones negotiates a loan for $2,000 at the same bank. In what direction and by what amount has the supply of money changed?

Answers

Answer: See explanation

Explanation:

Supply of money simply means the money available at a particular time period for an economy.

In the above scenario, the loan of $2000 will lead to an increase in the supply of money available in the economy by $2000.

It should be noted that the deposit made by Smith in the value of $500 does not bring about in the change of the money supply. This is because tye. $500 is still considered to be part of the money supply that is available in the economy.

A company is facing a lawsuit from a customer. It is possible, but not probable, that the company will have to pay a settlement that management estimates to be $2,000,000. How would this fact be reported in the financial statements to be issued at the end of the current month?
a. $2,000,000 in the Current Liability section.
b. $2,000,000 in the Long-Term Liability section.
c. In a descriptive narrative in the footnote section.
d. None because disclosure is not required.

Answers

Answer:

c. In a descriptive narrative in the footnote section.

Explanation:

Only contingent liabilities that are probable and can be actually estimated must be recorded in the income statement and balance sheet. Contingent liabilities that are only possible, but not probable, must be disclosed in the footnotes of the financial statements. Liabilities that are not possible, nor probable, should not be included anywhere.

when it comes to managing money success is about 80% knowledge and 20% Behavior true or false ​

Answers

Answer:

huh

Explanation:

do you have a picture of the question because I don't get it but I'm trying to help

Rory Company has a machine with a book value of $101,000 and a remaining five-year useful life. A new machine is available at a cost of $116,000, and Rory can also receive $83,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $17,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.)

Answers

Answer:

Incremental Income $52,000

Explanation:

The computation of the incremental income is shown below:

Reduction in variable manufacturing costs ($17,000 × 5) $85,000

Cost of the new machine -$116.000

Cash received from trade in old machine $83,000

Incremental Income $52,000

The machine should replacement as there is an increase in income by $52,000

A one year call option has a strike price of 50, expires in 6 months, and has a price of $4.74. If the risk free rate is 3%, and the current stock price is $45, what should the corresponding put be worth?
A) $12.74.
B) $10.48.
C) $5.00.
D) $9.00.
E) $8.30.

Answers

Answer:

$9.90

Explanation:

Using Put Call Parity Equation:

C + X/(1 + r)^t + S + P

Call price + PV of exercise price = Spot price + Put price

4.74 + 50/(1.03)^0.30 = 45 + P

4.74 + 50/1.00891 = 45 + P

4.74 + 49.5584 = 45 + P

P = 4.74 + 49.5584 - 45

P = 9.2984

P = $9.90

Thus, the Price of Put Option with $50 exercise price = $9.90

The firm should shut down if the market price is:___________.
A. above $8.
B. above $6.30 but less than $8.
C. above $4.50 but less than $6.30.
D. less than $4.50.

Answers

Answer: D. less than $4.50.

Explanation:

In the short run, a business should shutdown if the market price is below the Average Variable costs as because at this point, only losses are being made if the company stays in action.

If price is below the variable cost, it is best to shutdown so that the company can stop incurring the variable costs and incur the fixed cost alone. The lowest Average Variable cost is $4.50 for this good and so if the price falls below $4.50, the should shutdown.

Jasmine's Boutique has 2,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 9 percent. The interest is paid semiannually. What is the amount of the annual interest tax shield if the tax rate is 34 percent?A. $58,500B. $60,750C. $60,100D. $62,250E. $61,200

Answers

Answer:

E. $61,200

Explanation:

total interest expense = 2,000 bonds x $1,000 per bond x 9% = $180,000

the interest shield is the amount of taxes saved by paying interest expense

interest shield = total interest expense x tax rate = $180,000 x 34% = $61,200

this means that the company will be able to reduce its income taxes by $61,200 because it paid interests on their bonds

Franklin corporation issues $97,000, 8%, 5-year bonds on January 1, for $101,370. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is:________.
a. $4,317
b. $7,760
c. $3,443
d. $3,880

Answers

Answer:

c. $3,443

Explanation:

Date     Account Titles                              Debit      Credit

Jan 1     Cash                                              101370

                  Bond payable                                          97000

                  Premium on issue of bonds                    4,370

                   (101370-97000)

Jul 1        Interest expenses (3680 - 437)  3,443

              Premium on issue on bond         437

              (4379/5 * 6/12)

                     Cash (97,000*8%*6/12)                          3,800

Here I Sit Sofas has 7,500 shares of common stock outstanding at a price of $98 per share. There are 760 bonds that mature in 34 years with a coupon rate of 7.2 percent paid semiannually. The bonds have a par value of $2,000 each and sell at 110.5 percent of par. The company also has 6,400 shares of preferred stock outstanding at a price of $51 per share. What is the capital structure weight of the debt

Answers

Answer:

61.28%

Explanation:

Equity market value = Number of shares*price/share

Equity market value  = 7,500 * $98

Equity market value = $735,000

Current debt value = Number of bonds*price/bond

Current debt value = 760*(1.105*2000)

Current debt value = $1,679,600

Preferred stock value = Number of shares*price/share

Preferred stock value = 6,400 * $51

Preferred stock value = $326,400

Total capital = Common equity value + Debt value + Preferred stock value

Total capital = $735,000 + $1,679,600 + $326,400

Total capital = $2,741,000

Weight of debt = Debt value / Total capital

Weight of debt = $1,679,600 / $2,741,000

Weight of debt = 0.6127690623859905

Weight of debt = 61.28%

Phyllis makes a deal with her niece Stephanie that if Stephanie gave up gambling for two years, Phyllis would pay Stephanie $5,000. Stephanie gave up gambling for the required two years. Does this deal have valid consideration

Answers

Answer:

Yes .

Explanation:

I think so because Stphanie did what Phyllis asked , now she should get her well deserved $5,000 .

In addition to candidates who have the technical skills required of the position, what else do employers look for

Answers

Answer:

a personality that fits with their work environment

Explanation:

The second most important trait that employers look for is a personality that fits with their work environment. In almost all jobs the candidate will be working with a varied number of other employees in the company. The employers want to make sure that the candidate's personality matches the personality of the other employees so that they make sure that the candidate will be a good fit in the company and get along with the rest of the employees. This will almost guarantee that the candidate will work as efficiently as possible.

In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows.
Budget Actual
Indirect materials $16,000 $14,300
Indirect labor 20,000 20,600
Utilities 10,000 10,850
Supervision 5,000 5,000
All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.

Answers

Answer:

Hannon Company

Assembly Department

Responsibility Report

For the month of April 2020:

                               Budget       Actual      Variance

Indirect materials   $16,000    $14,300     $1,700  F

Indirect labor           20,000     20,600         600  U

Utilities                     10,000      10,850          850  U

Supervision               5,000       5,000         0       No effect

Total                      $51,000   $50,750      $250  F

Explanation:

a) Data and Calculations:

                               Budget       Actual      Variance

Indirect materials   $16,000    $14,300     $1,700  F

Indirect labor           20,000     20,600         600  U

Utilities                     10,000      10,850          850  U

Supervision               5,000       5,000         0       No effect

Total                      $51,000   $50,750      $250  F

b) The Assembly Department's responsibility report is a the budget analysis that compares its actual and budgeted amounts of controllable costs for the month of April, 2020.  The purpose of this report is to assign responsibility, improve performance, and hold a department or center responsible for its activities.

The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model:________

Answers

Answer: See explanation

Explanation:

Your question is not complete. Here is the completed question:

The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model, what is the risk premium?

The risk premium will be the difference between the market portfolio and the treasury bill rate. This will be:

= 10% - 6%

= 4%

A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day?

a. yes, with exactly 100 minutes to spare
b. no, but four workstations would be sufficient
c. no, it will fall short even with a perfectly balanced line
d. yes, but the line's efficiency is very low
e. cannot be determined from the information given

Answers

Answer:

C. no, it will fall short even with a perfectly balanced line

Explanation:

In this question, if a factory has a work time that is 400 minutes per day. The required units per day is a 209 units. With 5 available workstations.

Then we would calculate the time cycle as

400 x 5/100

= 400x0.05

= 20minutes/unit

So In conclusion, if the time required is more than 20 minutes, that is 21 minutes, it is going to fall short with a perfectly balanced line. Hence option c.

The correct option is c.

c. no, it will fall short even with a perfectly balanced line

The following information should be considered:

An assembly line having with five workstations that can't make 100 units per day.Because it will fall short even with a perfectly balanced line

Therefore, we can conclude that the correct option is c.

Learn more: brainly.com/question/16911495

Agency relationship refers to a consensual relationship between two parties, where one person (the principal) or entity authorizes the other, the agent, to act on his, her, or its behalf. Agency relationships exist in most large corporations due to the separation of management from ownership. The lack of alignment of the principal and the agent interests create an agency cost. What are the main implications of this separation

Answers

Answer:

The main implications of the agency separation are goal incongruence, self-interest, and low productivity.

Explanation:

Goal incongruence between an agent and the principal arises from the lack of alignment in their interests.  While the agent is appointed to represent the principal, most often, the agent acts in her own interest instead of in the best interest of the principal.  This lack of alignment reduces the productivity that could result from the agency relationship.  Another implication of the management separation is that the agent's risk appetite will be different from that of the principal.  The principal will need to exercise some control over the agent to curb excessive risk-taking by the agent.

Eliminating double-taxation would likely:________.
a. raise saving and primarily benefit people with lower incomes.
b. raise saving but primarily benefit people with higher incomes.
c. reduce saving but primarily benefit people with lower incomes.
d. reduce saving and primarily benefit people with higher income.

Answers

Answer:

a. raise saving and primarily benefit people with lower incomes.

Explanation:

Double taxation may be defined as the tax system where the tax is levied twice on the income. It is the tax principle refers to tax income that is paid twice on same source of income. It pronounced a negative economic impact, mainly on the wages. Thus eliminating the system of double taxation would ensure more savings and it will people with lower wages or incomes.

A tax is a government group's compulsory financial charge or other types of levy imposed on a customer to finance government spending and related public expenses.

Failure to pay taxes on time, as well as avoidance or resistance to taxation, are all illegal.

The correct answer is a. raise saving and primarily benefit people with lower incomes.

Option a. raise saving and primarily benefit people with lower incomes are correct because Double taxation is a tax structure in which the same amount of money is taxed twice. It is a tax theory that applies to earnings taxed on the same source of income.

It had a detrimental economic impact, particularly on salaries. Eliminating a double tax structure would result in more savings for persons with lesser earnings or incomes.

To know more about double taxation, refer to the link below:

https://brainly.com/question/18907731

A project that cost $80000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salvage value is $5000. The project will generate annual revenues of $24350. The annual rate of return is:_______
a. 17%
b. 50.3%
c. 16%
d. 15%

Answers

Answer:

22%

Explanation:

Net income = Annual cash flow - Depreciation

Net income = 24350 - (80,000-5,000 / 5)

Net income = 24350 - 15,000

Net income = $9350

Average investment = Beg. value + End. Value / 2

Average investment = 80,000 + 5,000 / 2

Average investment = $42,500

Annual rate of return = Net income / Average investment * 100

Annual rate of return = $9350 / $42,500 * 100

Annual rate of return = 0.22 * 100

Annual rate of return = 22%

Answer:Annual Rate of Return =22%

The correct option is not given

Explanation:

Annual Rate of Return = Net Income / Average Investment x 100

Net Income= Annual Cash flow - Depreciation

Straight-line depreciation =Cost - salvage value / useful years

= 80,000 - 5,000 / 5

75,000/5= $15,000

Net Income=$24,350 - $15,000

               =$9,350

Average Investment= Initial investment + salvage value / 2

$80,000 + 5000 / 2

= $85,000/ 2

$42,500

Annual Rate of Return =$9, 350/ $42,500 x 100

= 0.22 x100

=22%

The seller agrees to pay the listing real estate agent a commission of 5%. The property is listed at $400,000, the buyer offers and seller agrees on price of $380,000 and it closes at that price. The buyer obtains a loan of $300,000. The property is tax assessed at $350,000. The commission most likely paid to the real estate agent is:__________
A. No commission is owed because it did not sell at the list price
B. $17,500
C. $20,000
D. $19,000

Answers

Answer:

C. $20,000

Explanation:

Note that we are talking about the listing commission. Listing commission will be calculated on the listed price.

So, the listed price will be = 400,000 * 5%

= $20,000

Thus, the commission most likely paid to the real estate agent is $20,000

How do i get as much mony as bill gates todey?

Answers

Answer:

be very famous

Explanation:

be white
why do i need to have 20 letters

A firm will often split the stock to keep the stock price within a proper trading range.

a. True
b. False

Answers

Answer:

a. True

Explanation:

Many times a corporation might carry out a stock split in order to prevent the price of its stock to become too expensive. E.g. when Apple's stocks get too expensive, stock splits occur, The last occasion the split stocks was 7:1, i.e. for every existing Apple stock, 6 new ones were issued.

This occurs because if the price of the stock is too high, it will be harder for small investors. Remember that the total capitalization is not affected by a stock split.

What is the standard deviation of a stock that has a 10% chance of earning 18%, a 10% chance of making 11%, a 40% chance of making 5%, and a 40% chance of making 22%?
A. 7.95%.
B. 13.70%.
C. 7.78%.
D. 13.05%.

Answers

Answer:

A. 7.95%.

Explanation:

Calculate the expected rate of return for the investment as follows:

[tex]\begin{aligned}

\text { Expected rate of return } &=(\text { Probability } \times \text { Rate of return })+(\text { Probability } \times \text { Rate of return })+\\

&(\text { Probability } \times \text { Rate of retum }) \\

=&(0.40 \times 15 \%)+(0.50 \times 10 \%)+(0.10 \times-3 \%) \\

=& 0.06+0.05-0.003 \\

=& 0.107[/tex]

Calculate the standard deviation of the investment as follows:

[tex]\begin{aligned}

\text { Standard deviation }=&\left\{\begin{array}{l}

\text { Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\

\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\

\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)

\end{array}\right.[/tex]

=[tex]\sqrt{\left(0.40 \times(0.15-0.107)^{2}\right)+\left(0.50 \times(0.10-0.107)^{2}\right)+} \\

=\sqrt{0.0007396+0.0000245+0.0018769} \\

=\sqrt{0.002641} \\

=0.05139066063011[/tex]

To determine the dutiable status of goods, it is necessary to know their classification, country of origin, and details pertaining to:___________.a. Perishable/non-perishable status.b. Partially or fully manufactured goods.c. Raw materials to be used in production.d. Value.

Answers

Answer:

d. Value

Explanation:

The dutiable goods are subjected to duties. Dutiable goods may be defined as the goods and products on which tax have to be paid when they brought to a country from other countries.

In order to known the dutiable status of any goods, it is very important to know the classification of the good, the place of their origin and all the details relating to its value.

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