At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue's current E & P is $60,000, and at the end of the year, it distributes $200,000 ($100,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $11,000, Jon's stock basis is $26,000. How is the distribution treated for tax purposes?

Answers

Answer 1

Answer:

Pam and Jon's dividend income = $80,000 each

[ ($100000 Accumulated E&P + $60000 current E&P ) / 2] = $80,000

Statement of distribution for shareholders for tax purpose

                                            Pam           Jon

Total distribution            $100,000    $100,000

Less: Dividend income   $80,000     $80,000

                                        $20,000    $20,000

Less: Stock basis            $11,000       $26,000

Capital gain                     $9,000           $0

Therefore, Pam has a taxable gain of $9000 which reduces the stock basis to $0, whereas Jon has not any taxable gain but the stock basis has reduced to $6000 [$26000 - $20000]


Related Questions

What is the meaning of 50k in 2018?

Answers

Answer:

50,000

Explanation:

i hope it helped ya <3

50,000 Hope that helps

1. Joanne wants to set up a cosmetic store in her community and therefore needs to collect data to determine the feasibility of this type of business. Identify the TWO main types of research data she would need to gather in order to establish the business.​

Answers

The two main types of research data Joanne would need to gather to establish the cosmetic store business are:

Market research dataFinancial data

What are the two main types of research data?

Market research data: Joanne would need to gather information about the market demand for cosmetic products in her community. This data would include the size of the market, the demographics of the target customers, their preferences, buying habits, and behaviors, as well as any existing competitors in the area.

Financial data: Joanne would also need to gather financial data to determine the feasibility of the business. This data would include the startup costs, operational expenses, revenue projections, and potential profitability of the business. It would also include information about the funding sources available to her, such as loans, investors, or personal savings.

Learn more about research data at:

https://brainly.com/question/1046799

#SPJ1

Which of the following is the most accurate statement about a mentally impaired person's capacity to contract?
Multiple Choice
None of the parties to a contract can enforce the contract if, before they entered the contract, one of the parties was judged by a court (.e.,
adjudicated) to be mentally incompetent.
A person who suffers from a mental impairment can never have capacity to contract.
A person can disaffirm a contract if the other party to the contract suffers from a mental impairment.
A person with a mental impairment lacks the capacity to contract, even if the impairment does not affect their ability to understand and
evaluate the contract.
If a person has a mental impairment that deprives him of capacity at the time he enters into a contract, the person can never have capacity
to ratify the contract at a later time.

Answers

Correct answer is If a person has a mental impairment that deprives him of capacity at the time he enters into a contract, the person can never have capacity to ratify the contract at a later time.

Who are the mentally impaired?

Being mentally handicapped refers to having any mental or psychological condition, including specific learning impairments, organic brain syndrome, developmental disabilities, and mental illnesses.

When a person's mind is damaged or not working properly, it is said that they have a mental impairment. A mental impairment, according to the policy, is a decline in mental capacity that requires close supervision in order to protect your safety and the protection of others.

To know more about mental impairment visit:

https://brainly.com/question/13029932

#SPJ1

Potts company uses a job costing system and had the following data available for 20X9.
Cost of raw materials purchased on account $ 75,000
Cost of raw materials requisitioned(includes
$2,000 of indirect materials) $ 43,000
Direct labor cost incurred $ 75,000
Manufacturing overhead costs incurred $ 95,000
Cost of goods completed $ 226,750
Cost of goods sold $ 138,000
Raw materials inventory, Jan. 1, 20X9 $ 15,000
Work in process inventory, Jan. 1, 20X9 $ 32,000
Finished goods inventory, Jan. 1, 20X9 $ 31,000
Pre-determined manufacturing overhead rate 125% (as a percent of direct labor cost)
Refer to Case 1.
The journal entry to record the total materials placed into production would include which of the following?
A) debit to manufacturing overhead for $41,000
B) debit to work in process for $43,000
C) debit to work in process for $41,000
D) credit to manufacturing overhead for $2.000
Refer to Case 2.
The journal entry to record the actual manufacturing overhead costs incurred would include which of the following?
A) debit to manufacturing overhead $95,000
B) debit to work in process for 93.750
B) credit to work in process $95,000
C) credit to manufacturing overhead $93,750

Answers

Answer:

        1. C) debit to work in process for $41,000

        2. A) debit to manufacturing overhead $95,000

Explanation:

1. The materials that were placed into production are:

= Cost of raw materials requisitioned -  indirect materials

= 43,000 - 2,000

= $41,000

This will be debited to the Work in Progress as it is a direct cost.

2. Manufacturing overhead for the period is $95,000 and this will go to the manufacturing overhead account as a debit because it is an expense.

The use of the word "monopoly" in the name of the market structure called "monopolistic competition" refers to the fact that
a. monopolistically competitive firms produce beyond their efficient scale and so do monopolists.
b. monopolistically competitive markets have free entry and exit just like a monopolistic market.
c. monopolistically competitive firms charge prices equal to their marginal costs just like monopolists.
d. a monopolistically competitive firm faces a downward-sloping demand curve for its differentiated product and so does a monopolist.

Answers

"Monopolistic competition" refers to the fact that; In a monopolistic competitive market, as in a competitive market, there are many sellers and they can come and go as they please. So option b. is correct.

Define Monopolistic competition.

Monopolistic competition is when manufacturers compete with each other by selling different products that are not perfect substitutes for each other.

If there is only one supplier in the market, he is called a monopoly. Traditional economic theory sees a monopoly as the perfect antithesis of perfect competition. The demand curve that a monopolist encounters is, by definition, the industry's downhill demand curve.

To know more about Monopolistic competition, visit:

https://brainly.com/question/29617378

#SPJ1


You are reading product reviews posted online by consumers. Which external information source are you using?
A. company website
B.industry website
industry website
C. social media
D. print media
E consumer report

Answers

Option (e), Reading customer reviews of products that have been put online. The external information source you're employing is called Consumer Report.

What does it mean when something is a "internal source" or a "external source"?

Internal data refers to information regarding the business's activities, maintenance, personnel, and finances. Market information that comes from customers and competitors is external. It comprises data like statistics from surveys, polls, research studies, and customer feedback.

Consumer reviews are what kind of information?

Customer review data is the sum of consumer ratings and reviews of products, services, and businesses. Customer feedback data looks at how consumers engage with and use a brand's products and services. what consumers think about a business.

Why are consumer product reviews important?

Product reviews help businesses choose which products to stock in addition to helping consumers make informed decisions. According to Invsep, 90% of customers check internet reviews before visiting a business, and 88% of them think that these reviews are just as trustworthy as personal recommendations.

Learn more about Customer review data: https://brainly.com/question/26504286

#SPJ1

Materials shall not be stored within how many feet
of a fire door.

Answers

Answer:

3 feet or 36 inches

Explanation:

Explain the following terms: (1Mark each)
a) Family business
b) Innovation
c) Small business
d) Networking
e) Entrepreneurship

Answers

a)A family business is a commercial organization in which decision-making is influenced by multiple generations of a family, related by blood or marriage or adoption, who has both the ability to influence the vision of the business and the willingness to use this ability to pursue distinctive goals.

a)Family business, as the name suggests, is the organization which is actively owned, operated and managed by two or more members of the single-family. b)Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. c)Small businesses are types of corporations, partnerships, or sole proprietorships which have a small number of employees and/or less annual revenue than a regular-sized business or corporation. d)Networking is the process of making connections and building relationships.

e)Entrepreneurship is the creation or extraction of economic value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones.

Learn more about family business, here:

https://brainly.com/question/28591368

#SPJ1

Teozocior.01.010
o
.
Which of the following is true of downward communication?
a. Recording a project's results and accomplishments involves downward communication.
..
O b. The process of creating progress reports is an example of downward communication.
5.
c. Problem solving and clarifications in organizations involve downward communication.
7.
d. Orientation to a company's rules and practices is an element of downward communication.
8.
о
9.
10.
C
11.

Answers

Answer:

When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...

Explanation:

Which of the following is an example of a private good? (1 point)
positions in a free online game limited to 100 people
O an internet connection from a local cable company
O a public website
Oa personal computer used to access the internet

Answers

A good example of a private good is D. a personal computer used to access the internet.

A private good belongs to the individual or group who purchases or produces it for its personal consumption. The individual or group enjoys exclusive ownership of the private good.  

The consumption of the private good is highly restricted.   The major characteristics of a private good are excludability, rivalry, and rejectability.

A private good can be differentiated from a public good.  A public good is provided for the common use of the members of a society.

A public good does not deplete by usage, and equal access is granted to all.  Its major characteristics are nonexcludability and nonrivalry.

Thus, a personal computer is an example of a private good, while a public website is an example of a public good.

Read more about a private good at https://brainly.com/question/24109991

Answer:

D

Explanation:

Which of the following would appear in the cash flows from investing activities section of the statement of cash flows?
a. Cash received from stock issued
b. Cash received from bonds payable
c. Depreciation expense on equipment
d. Cash paid for equipment

Answers

The correct answer is:

d. Cash paid for equipment

Cash flows from investing activities include transactions related to the acquisition or sale of long-term assets such as property, plant, and equipment. Cash paid for the purchase of equipment would be categorized as an investing activity because it involves the outflow of cash for the acquisition of a long-term asset.

What are the main types of contracts if you decide to outsource? What are the advantages and disadvantages of each? g

Answers

Answer:

Time-and-materials contracts, which bill the project at an agreed-upon rate based on actual resources used and time spent by developers.

Fixed-price contracts, which bill the project at a flat rate, regardless of the time spent or resources used.

Explanation:

How does market play a significant
role to develop business

Answers

Market serves as the face of your company, coordinating and producing all materials representing the business. It is the Marketing Department's job to reach out to prospects, customers, investors and/or the community, while creating an overarching image that represents your company in a positive light.

List the entities and personnel involved in an Automobile's Repair Shop's "supply chain" 1. How do you think these do or should all work together? 2. How do you think it could be improved?

Answers

The entities and personnel involved in an Automobile's Repair Shop's "supply chain are;

the parts manufacturers auto mechanics electricians

They should work together so that the final consumer who were the owners of the automobiles can get their cars repaired.

It can be improved if the parts manufacturers make the parts to be available at cheaper rate for the shops that are dealing with the mechanical work.

What is supply chain?

A supply chain can be described as the network of all the individuals, as well as entity that   are responsible for the creation and sale of a product.

For instance the Automobile's Repair Shop's  encompass the activities of the the parts manufacturers ,  auto mechanics and  electricians which are chains to be followed in order to get the automobiled repaired.

Read more about supply chain at:

https://brainly.com/question/25160870

#SPJ1

Which of the following should be included in an individual taxpayers federal gross income

Answers

Answer:

I believe your wages, dividends, business income, capital gain, retirement distributions as well as other income should all be included in an individual  gross business income

Explanation:

Let me know if this helps!

choose the correct

1) The Financial System main function is to
a) Channeling funds from surplus units to deficit units
b) Transfer money from those who haven’t productive use of fund to other who have c) Derive the economy to efficiency
d) All of the above



2) The financial market consider to be
a) The indirect route to transfer funds from surplus to deficit units
b) The direct route to transfer funds from surplus to deficit units
c) Where the surplus units makes deposit
d) Where the deficit units takes loan



3) The balance sheet describe
a) The financial position of the company
b) The operation of the company
c) The sources of finance of the company
d) All of the above




4) In order to calculate the weighted average cost of capital, we obtain
a) Cost of debt
b) Cost of equity
c) Cost of both (debt and equity)
d) None of above



5) The income statement describe
a) The financial position of the company
b) The operation of the company
c) The sources of finance of the company
d) All of the above



6) If the ROA of a company is 17.5% , profit margin is 12.5% and ROE is 30% and the interest on deposits is 18%. It would be better for the investors to invest in: a) the company
b) the bank
c) divided the money into both
d) need more information




7) If the present value of cash flows greater than initial investment, so we shall
a) Accept the project
b) Reject the project
c) Need more information
d) None of the above




8) In the cash flow, it is better for the company to have from operating activity:
a) Positive cash flow
b) Negative Cash flow
c) It doesn’t differ
d) None of the above


9) The financial ratio that measure the management efficiency
a) Return on equity
b) The current ratio
c) The debt to equity
d) Return on Assets


10) The country risk premium will increase if
a) The economic position of the country stable
b) The economic position of the country unstable
c) From one year to another
d) If the political status become stable


11) The first step to obtain make budgeted financial statement
a) Determine expected distributed dividends
b) Determine expected purchase of raw material
c) Determine expected sales revenue
d) Determine expected organization structure

12) The breakeven point for a company reached when :
a) Revenue equal variable cost
b) Revenue equal fixed cost
c) Revenue equal total cost
d) Fixed cost equal variable cost

Answers

The Financial System main function is to - a) Channeling funds from surplus units to deficit unitsThe financial market consider to be - b) The direct route to transfer funds from surplus to deficit unitsThe balance sheet describe - a) The financial position of the companyIn order to calculate the weighted average cost of capital, we obtain - c) Cost of both (debt and equity)The income statement describe - b) The operation of the companyIf the ROA of a company is 17.5%, profit margin is 12.5% and ROE is 30% and the interest on deposits is 18%. It would be better for the investors to invest in - b) the bankIf the present value of cash flows greater than initial investment, so we shall - a) Accept the projectIn the cash flow, it is better for the company to have from operating activity - a) Positive cash flowThe financial ratio that measures the management efficiency - d) Return on AssetsThe country risk premium will increase if - b) The economic position of the country unstableThe first step to obtain make budgeted financial statement - c) Determine expected sales revenueThe breakeven point for a company reached when - c) Revenue equal total cost

The Boston Tea Party was the result of:
O export taxes.
O local content requirements.
an embargo
local sales tax.

Answers

the answer is c or a

There are lots of website visits but no one is buying the Products​

Answers

Chances are you're driving poor-quality traffic to your store. Or, your site isn't easy to use. It's also possible that an elaborate checkout process or an additional, hidden fee is the reason behind the poor sales. In reality, there can be one too many reasons behind a low conversion rate despite the high traffic


Assume money supply rule. Growth in Q is 5%; growth in V is 2%. How
much should the MS grow to keep P constant? Assume MV = PQ (note: what
should the value of M and P be to balance the equation MV = PQ).

Answers

The money supply (M) should grow by the factor of (V1 / (Q1 * 1.05)) to keep the price level (P) constant.

How to determine How much should the MS grow to keep P constant?

To keep the price level (P) constant when the growth in output (Q) is 5% and the growth in velocity (V) is 2%, we need to adjust the money supply (M) accordingly.

The equation MV = PQ represents the quantity theory of money, where M represents the money supply, V represents the velocity of money, P represents the price level, and Q represents the output.

Since we want to keep P constant, we can set the initial value of MV equal to the final value of PQ:

MV = PQ

Assuming the initial values of M and P are M1 and P1 respectively, and the final values are M2 and P2, we can rewrite the equation as:

M1V1 = M2Q

Since we know that Q is growing at 5% (Q2 = Q1 * 1.05), and V is growing at 2% (V2 = V1 * 1.02), we can substitute these values into the equation:

M1V1 = M2Q1 * 1.05

To keep P constant, we need to solve for M2:

M2 = (M1V1) / (Q1 * 1.05)

Therefore, the money supply (M) should grow by the factor of (V1 / (Q1 * 1.05)) to keep the price level (P) constant.

Learn more about price level at https://brainly.com/question/27844397

#SPJ1

a US company owns 80% of interest in a company located on Mars. Martian currency is called The Martian credit during the year the parent company sold inventory that had a cost of 24500 to the subsidiary on account for 28,500 when the exchange was 0.519 to the subsidiary still held one half of the inventory and had not paid the parent company for purchase at the end of the physical year. The unsettled account is denominated in dollars the exchange rate at the fiscal year and was 0.4994 compute the amounts that would be reported for inventory and accounts payable in the subsidiary translated balance sheet the entities functional currency is the Martian credit

Answers

The amounts reported for inventory and accounts payable on the subsidiary translated balance sheet are 18,619 Martian credits and 14,217 Martian credits, respectively.

A US-based company that has an 80% stake in a Martian company has to report the assets, liabilities, and equity of its subsidiary on its consolidated financial statements in US dollars. The Martian currency is known as the Martian credit. During the year, the parent company sold inventory with a cost of 24500 to the subsidiary on account for 28,500 when the exchange rate was 0.519 to the subsidiary.

One-half of the inventory still belongs to the subsidiary, and at the end of the physical year, the subsidiary had not paid for the purchase.The account that remained unpaid is denominated in dollars, and the exchange rate was 0.4994 at the end of the fiscal year.

The functional currency of the company is Martian credit, and the dollar amount of the balance sheet needs to be translated into the Martian currency. In order to calculate the inventory and accounts payable, we will use the current rate method. The first step in the calculation is to find the closing rate of the Martian credit to the US dollar.Exchange rate at the fiscal year-end: $1 = 0.4994

Martian creditThe amount reported for inventory on the subsidiary translated balance sheet can be calculated as follows:

Beginning inventory: 12,250 (since the subsidiary still holds one half of the inventory)

Cost of inventory sold to the subsidiary: 24,500

Closing rate of the Martian credit to the US dollar: 0.4994

Martian credit reported inventory = (12,250 + 24,500) × 0.4994 = 18,619

Martian credits The amount reported for accounts payable on the subsidiary translated balance sheet can be calculated as follows:

Beginning accounts payable: 0Amount owed to parent company: 28,500

Closing rate of the Martian credit to the US dollar: 0.4994

Martian credit reported accounts payable = (0 + 28,500) × 0.4994 = 14,217 Martian credits

For more such question on inventory visit:

https://brainly.com/question/29636800

#SPJ8

The market structure of the local pizza industry is best characterised by monopolistic competition. Pizza Shack is one of the producers in the local market. The market demand for Pizza Shack is: Qd = 225 – 10P. Pizza Shack’s cost function is: C(Q) = 0.15Q^2 Where Q^2 refers to q squared 3. Derive the total revenue equation:

Answers

The total revenue equation for Pizza Shack is $810.

To derive the total revenue equation for Pizza Shack, we need to use the demand equation and the price equation. The price equation is derived from the cost function, which is C(Q) = 0.15\(Q^{2}\).

To find the marginal cost, we need to take the derivative of the cost function with respect to Q, which is:

MC = 0.3Q

Now, to find the optimal price and quantity that Pizza Shack should produce, we need to set the marginal cost equal to the marginal revenue. In monopolistic competition, the marginal revenue is the change in total revenue when one more unit is sold, which is given by the derivative of the total revenue equation.

The demand equation for Pizza Shack is:

Qd = 225 – 10P

To find the price equation, we need to solve for P:
Qd = Qs
225 – 10P = Q
P = (225 – Q)/10

Now, we can plug in the price equation and the cost function into the revenue equation, which is:

TR = P x Q.

TR = (225Q – \(Q^{2}\))/10

To find the optimal quantity, we set the marginal cost equal to the marginal revenue:
MC = MR
0.3Q = (225 – 2Q)/10
3Q = 225 – 2Q
5Q = 225
Q = 45

Now that we have the optimal quantity, we can plug it back into the price equation to find the optimal price:
P = (225 – Q)/10
P = (225 – 45)/10
P = 18

Therefore, the total revenue equation for Pizza Shack is:
TR = P x Q
TR = 18 x 45
TR = $810

In conclusion, the total revenue equation for Pizza Shack is $810, and it is derived from the demand equation and the price equation, which are both based on the market structure of monopolistic competition.

know more about revenue equation here:

https://brainly.com/question/30760779

#SPJ11

How can verbal feedback affect customer encounters? Give 3 real lifelexamples. (good or bad) Follow the​

Answers

Explanation:

Example 1: the numeric NPS response

Everyone loves a handy dandy NPS survey. They give you an easy glimpse into how your customers are thinking about your brand or your business, and quantify just how happy they are with your services.

But, not all NPS surveys or responses are created equal.

Let’s say your business sends out an NPS survey to a random sample of customers. Of that sample, 65% are promoters (and gave you a 9-10 rating), 25% are neutral (a 7-8 rating), and 10% are detractors (a 0-6 rating). Of that sample, only a handful of the promoters wrote feedback about why they picked the score they did. The rest simply clicked a number and then went about their day.

Where do you go from here? How can you convert those neutral customers into promoters, and raise the bar for the detractors to bring them closer to your ideal score without written feedback?

NPS is helpful, but only when it gives you a clear picture of what your customer was thinking and provides tangible feedback you can incorporate into your organization.

Example 2: a “yes” or “no” response to an FCR survey

Now, let’s say every time a customer creates a Support ticket, your organization sends an automated First Contact Resolution survey once the ticket is closed.

Most often, a FCR survey is just one question – Were we able to help you resolve your issue? – with a simple “yes” or “no” response.

Receiving a “yes” is, of course, great – it means your agents were able to help your customer get to the bottom of their issue and helped make their day a little better. Receiving a “no,” on the other hand, is the exact opposite; it means your agents weren’t able to successfully meet the needs of your customer, and they’ve been left frustrated by the experience, with their issue still unresolved.

So what happens after a “no”?

Depending on what you use to capture FCR. it could be nothing. “No” responses are simply filed away in a folder, maybe you ping your agents to get more context on the particular issue, and everyone pretends it didn’t happen.

If you want to turn those “no” responses into actionable customer feedback, however, it’s crucial to have tools for your business like Service Recovery.

With Service Recovery, you have the ability to flag any “no” responses and fire off a follow-up survey to your customer, get more clarity from them on how you missed the mark, and dig in deeper to resolve their issue.

Plus, you get the added benefit of being able to re-survey your customers, which means even more insight for your team on the value of being able to circle back on negative FCR responses.

Win, win, and win.

Interventions strategies to prevent restrictions or barrier in small businesses townships

Answers

To prevent restrictions or barriers in small businesses in townships, several intervention strategies can be implemented:

1. Business Development Support: Offer training programs, workshops, and mentorship opportunities to help small business owners develop essential skills such as financial management, marketing, and business planning.

2. Access to Capital: Establish microfinance programs or low-interest loan schemes to provide small businesses with the necessary funds to start or expand their operations. Additionally, create partnerships with financial institutions to streamline the loan application process.

3. Infrastructure Improvement: Invest in upgrading township infrastructure, including roads, electricity, and internet connectivity. This will enhance the business environment, attract investors, and facilitate smoother operations for small businesses.

4. Regulatory Simplification: Simplify and streamline licensing and permit procedures, reducing bureaucracy and paperwork burdens. This will make it easier for entrepreneurs to start and operate businesses, fostering a favorable environment for small enterprises.

5. Market Linkages: Facilitate connections between small businesses and larger supply chains, enabling them to access wider markets and secure stable customer bases. This can be achieved through networking events, trade fairs, and partnerships with established businesses.

6. Local Procurement Policies: Encourage local governments and institutions to adopt procurement policies that prioritize purchasing goods and services from small businesses in the townships, thereby boosting their economic growth and sustainability.

7. Collaborative Initiatives: Foster collaboration among small businesses by establishing business associations, cooperatives, or incubation centers. These platforms can provide shared resources, collective marketing efforts, and a supportive community.

By implementing these intervention strategies, the barriers and restrictions faced by small businesses in townships can be minimized, promoting their growth, sustainability, and contribution to the local economy.

For more questions on Capital, click on:

https://brainly.com/question/15300072

#SPJ8

milk is a heterogeneous mixture how?

Answers

Answer:

it gives you white particulates so it is a heterogeneous mixture

Rates and taxes
amount to R 14000
per month, and must
be apportioned in
relation to floor space
(the factory takes up
75% of the total floor
space of the entire
premises​

Answers

Answer:

The Rates and Taxes:

Factory = R 10,500

Office = R 3,500

Explanation:

a) Data and Calculations:

Total amount for Rates and Taxes = R 14,000

Factory space = 75%

Therefore, office space = 25% (100 - 75%)

Apportionment of the Rates and Taxes for the month:

Factory = R 10,500 (R 14,000 * 75%)

Office = R 3,500 ( R 14,000 * 25%)

b) Each function of the business entity is apportioned a part of the Rates and Taxes according to the size of the floor space they take up.  This shows that Rates and Taxes are dependent on floor space.


2.
What is the effect on the market when suppliers under invest in their businesses?​

Answers

Answer:

the profit margin will decrease and supplies won't get their promotin

Assume the spot price of the US dollar against the dirham is 9dh/$. The exercise price in a put option is 9.2dh/$ and the premium is 0.4dh/$. The buyer of the put will

Answers

A put option gives the buyer the right, but not the obligation, to sell the underlying asset (in this case, the US dollar) at the exercise price (in dirhams).

In this scenario, the spot price of the US dollar against the dirham is 9dh/$, and the exercise price in the put option is 9.2dh/$. This means that the buyer of the put option has the right to sell US dollars for 9.2 dirhams per dollar, even if the spot price drops below that level.

The premium for the put option is 0.4dh/$, which means that the buyer pays 0.4 dirhams per dollar to the seller of the put option for the right to sell US dollars at the exercise price of 9.2 dirhams per dollar.

If the spot price of the US dollar against the dirham drops below the exercise price of 9.2dh/$, the buyer of the put option can exercise their right to sell US dollars at the higher exercise price of 9.2dh/$, making a profit on the trade.

On the other hand, if the spot price of the US dollar remains above the exercise price, the buyer of the put option may choose not to exercise their right to sell at the lower price, and they will lose the premium they paid for the option.

Therefore, the buyer of the put option is hoping that the spot price of the US dollar against the dirham will drop below the exercise price of 9.2dh/$, so that they can sell their US dollars at the higher exercise price and make a profit.

On November 1, Orpheum Company accepted a $12,400, 90-day, 8% note from a customer to settle his account. What entry should be made on the November 1 to record the acceptance of the note?

Answers

Answer:

Dr Note Receivable $12,400

Cr Accounts Receivable $12,400

Explanation:

Based on the information given we were told that on November 1 the company accepted a note from a customer in order to help settle the customer account of the amount of $12,400 which means that the Journal entry that should be made on the November 1 to record the acceptance of the note will be :

Dr Note Receivable $12,400

Cr Accounts Receivable $12,400

Why youth lost interest in taking part in politics in south africa in this new decade.

Answers

Answer:

lack of representation

corruption

state capture

lack of trust

it is taking the possession of an asset by purchase​

Answers

Answer:

A purchase means to take possession of a given asset, property, item or right by paying a predetermined amount of money for the transaction to be completed successfully. In other words, its' an exchange of money for a particular good or service.

Other Questions
3. Simon / est-ce que / du lait / reprendre 4. l'addition / nous / comprendre / ne...pas 5. apprendre / l'anglais / vous / est-ce que Why can't I remember? I've got to fight. I lie in bed for days and I don't know who or where I am. Then it all comes back to me in a flash. Fugues of amnesia. Symptoms of senility -second childhood. I can watch them coming on. It's so cruelly logical. I learned so much and so fast. Now my mind is deteriorating rapidly. I won't let it happen. I'll fight it. I can't help thinking of the boy in the restaurant, the blank expression, the silly smile.Flowers for Algernon,Daniel KeyesWhat does Charlie fear will happen next as the effects of his surgery reverse?He fears he will become like he was and like the boy in the restaurant.He fears he will suddenly die, just like Algernon did.He fears that Miss Kinnian will no longer stay around to help him.He fears he will no longer be able to fight for what he believes.the answer is A) a battery is several electrochemical cells stacked together. please select the best answer from the choices provided t f Read the passage from Cruel Tribute.Then the youths and maidens ran to Theseus and kissed his hands and feet, and thanked him for his great deed; and, as it was already growing dark, Theseus bade them follow him while he wound up the silken thread which was to lead them out of the Labyrinth. Through a thousand rooms and courts and winding ways they went, and at midnight they came to the outer door and saw the city lying in the moonlight before them; and, only a little way off, was the seashore where the black ship was moored which had brought them to Crete. The door was wide open, and beside it stood Ariadne waiting for them."The wind is fair, the sea is smooth, and the sailors are ready," she whispered; and she took the arm of Theseus, and all went together through the silent streets to the ship.In this excerpt, the sequence of events creates suspense by speeding up the plot to move the story forward and build tension.starting the story in the middle of things.describing a setting that causes anticipation.showing the importance of a long period of time that has passed. Bees help flowers reproduce through a process called __________. *2 pointsfertilizationphototropismtranspirationpollination write a small script to attempt a zone transfer from megacorpone using a higher-level scripting language such as python, perl, or ruby. what's a good online University to attended for cyber security certificate.? Consider a perpetuity that pays $5000 per year with the first payment six years from now. One can purchase this perpetuity by making six annual payments of J with the first payment now. The effective annual interest rate on all transactions is 8%. Determine J. find the length of YZ T/F: Net operating income computed using absorption costing will always be greater than net operating income computed using variable costing. Find the area of the circle. Round your answer to two decimal places, if necessary. the function of the role of an orienter in a group is to motivate team members to work harder toward goals. offer constructive challenges to the team's status quo. resolve differences among teammates. praise the work of teammates. establish the direction for the team. Why is 6/8 grater than 5/8 but less than 7/8? smoking rates are higher in developing and under developed countries than in developed countries.T/F at element is most often used to indicate boundaries between forms?A) Contour linesB) GroundC) IntensityD) Foreshortening Conservation efforts have been effective in _______.a.increasing the number of endangered speciesb.reducing all the negative impacts of human activityc.preserving wildlife habitatsd.all of the above The perimeter of a square is equal to the perimeter of an equilateral triangle. The length of a side of the square is given by x, and the length of a side of the equilateral triangle is given by x + 1. Which equation can be used to find the value of x? PLEASE HELP ME QUICKLY!!!!!!!!!!!!!!!! Pls help me do this thank you Folded mountains like the Himalayan mountains form along which boundary type:a. Convergent, both oceanic crust platesb. Divergent, both oceanic crust plates c. convergent, both continental crust plates d. divergent, both continental crust plates