Yes, it would matter. If Wade was primarily concerned with the tax effect, he should give the car to his daughter and let her sell it. Conveniently, the limit on how much one can give without paying federal taxes on that gift (other than to charity), is $13,000. This means wade will pay no tax when he gifts the car to his daughter. If he sells it himself, he will need to pay tax on the gain he realizes on the sale of the car, since he will have made a profit on the sale.
His daughter, when she sells the car, will also have to recognize the gain on the sale of the vehicle. However, she is apparently in a much lower income bracket than Wade, and thus may pay even less tax on her 13,000 gain than Wade would have paid on his $3600 profit.
Answer:
Explanation:
The Risk neutral probability is given by
e
rt
−
D / U-D
U=1.1
D=0.9
R=0.12
T=3/12
π
u
=
e∧
0.12
∗
3
/
12
−
0.9
/1.1
−
0.9
=0.652
π
d
=
1−
0.652
=
0.348
The values of american and european options at each node is given in the following table.
0.652
0
0.81 48.4
0.652
0.81
American option value 2.54 44
probability 0.652/0.3478'
Option value 2.12 2.4
Futures price 40 6 39.6
0.3478
4.76
36
0.3478
9.6
32.4
Time period 0 3 6
the value at up node at 3 months is given by = (
0.652∗
0
)
+
(
0.3478
∗
2.4
)/e
∧0.12
∗
3
/
12 = 0.81
Hence, value of european put option =$2.12
Value of American put option = 2.54
Answer:
The correct answer to the following question will be "Dispatching shipments".
Explanation:
- Induction payable to something like a shipper, client, or charter by such an operational performance for performing the lifting/offloading operations sometime within the time allocated. Also read out as a fax. Whenever a shipping industry receives your quality products to their new destination you could pay themselves a dispatcher doing an excellent job.
- The very first step towards dispatching shipments seems to be to distribute or deploy shipments as packing as well as trying to direct them to something like the support vehicle.
So that the above is the right answer.
Answer:
10 years and 10 months.
Explanation:
Provided information we have,
Amount invested = $2,500
Earning interest rate = 3.4% annually
Compounded semiannually
Thus, period to be considered = 2 in a year
Interest rate = 
Thus, effective interest rate = 1.7%
Now, according to future value of compounded rate @ 1.7% at a period 65 factor = 2.9913
Thus value will be $2,500 
2.9913 = 7,478.25
That is approximate triple in value.
Thus, total period in number of years = 65/6 months = 10.833 years.
0.833 12 months = 10 months
That exactly means 10 years and 10 months.
Answer:
1. Determine the effects of this transaction on
a. Exports - There will be no effect on the export of the USA;
b. Imports - The initial amount spent on the importation of the toys and the videogame plus $10,000.00 spent on the importation of PlayNation Perfect Video game console to increase the inventory will put the Japanese economy on a favourable BalanceBalance of Payment (BOP) because money came into the economy and left the USA economy simultaneously.
c. Net exports in the U.S. economy will be<em> low.</em>
Explanation:
a. Exports - There will be no effect on the export of the USA because the store did not export anything rather it imported the PlayNation Perfect video game console from a Japanese company and spent an additional $10,000.00 to increase his inventory. Simply put, money left the US economy without a complementary import to strike a balance in Balance of Payment.
b. Imports -<em> </em>The initial money spent in the importation of the consignment and $10,000.00 spent to increase his inventory will put the Japanese economy on a favourable Balance of Payment (BOP) because money came into the economy and left the US economy;
c. Net exports in the U.S. economy will be<em> low because there were importations of goods into the economy without corresponding export to have a favourable Balance of Payment in the International Trade. It is when the Exports in USA is greater that that of the import that you have a favourable Balance of Paymet and it translates to improve GDP.</em>
