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balu736 [363]
2 years ago
13

Bad Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $10 per share) from his employer.

At the time he started working, the stock price was $11 per share. Now that the share price is $25 per share, he intends to exercise all of the options. Two years later Bad Brad sells the stock for $27 per share. What is Bad Brad's basis in his stock for purposes of calculating the gain or loss?a.$6,000.b.$9,000.c.$15,000.d.$16,200.
Business
1 answer:
kakasveta [241]2 years ago
6 0

Answer:

Bad Brad's basis in his stock for purposes of calculating the gain or loss is c) $15,000

Explanation:

Hi, he has a option, which works kind of like and insurance policy, in which he has the right to buy that 30 shares at $10 each, for every NQO that he has, and since he has 20 NQOs, he can invest:

Investment=20(NQOs)*\frac{30(Shares)}{1(NQOs)} \frac{10(dollars)}{1(Share)} =6,000(dollars)

Plus, $15*600 shares=$9,000 which is the income recognized

Therefore, ignoring the cost of the options, the amount of money that Bad Brad has to consider in order to check if he had a loss or a gain is $6,000+$9,000=$15,000

Best of luck.

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An investment of $210 produces a perpetual stream of cash inflows. Next year, the cash inflow will be $10.50, and the cash inflo
svetlana [45]

Answer:

The answer is the internal rate of return on this investment is 10%.

Explanation:

The internal rate of return is the discount rate bringing the present value of the perpetual stream of cash inflows equal to its initial investment which is $210.

We apply the formula for calculating the present value of growing perpetuity to find out the internal rate of return, which is denoted as X in the below equation:

10.5/ ( X - 5%) = 210 <=> X - 5% = 10.5 / 210 = 5% <=> X = 5% + 5% = 10%.

So, the internal rate of return on this investment is 10%.

8 0
2 years ago
DIP LLC reports ordinary income (before guaranteed payments) of $120,000, rent expense of $40,000, and interest income of $4,000
ahrayia [7]

Answer:

$24,000 ordinary income

$1,600 interest income

$20,000 guaranteed payment.

Explanation:

Calculation for what how much income will Percy report for the year and what is its character

Calculation for Percy Ordinary income: 120,000 - 40,000 - 20,000

= 60,000 x 40%

= 24,000.

Calculation for Percy Interest income:

4,000 x 40%

= 1,600

Guaranteed Payment: 20,000

Therefore what Percy will report will be: $24,000 ordinary income

$1,600 interest income

$20,000 guaranteed payment.

7 0
2 years ago
Which of the accompanying boxplots likely has the data with the larger standard​ deviation? why?
Paraphin [41]

The answer is Boxplot II.  The standard deviation for the data associated with Boxplot II will likely have a larger standard deviation. Boxplot II has a greater spread than Boxplot​ I, as measured by the interquartile​ range, which is  related directly to the standard deviation of a data set.


7 0
2 years ago
Demur Inc., a manufacturing company, has provided the following data for the month of April. The balance in the Work-in-Process
Mrac [35]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

The balance in the Work-in-Process Inventory account was $10,000 at the beginning of the month and $22,000 at the end of the month. During the month, the company incurred direct materials cost of $63,000 and the direct labor cost of $39,000. The actual manufacturing overhead cost incurred was $40,000. The manufacturing overhead cost applied to Work-in-Process was $43,000.

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 10,000 + 63,000 + 39,000 + 40,000 - 22,000= $130,000

6 0
2 years ago
Read 2 more answers
Acme corporation currently has a 20% market share in a $15 billion industry (measured by sales revenue). emca corporation curren
denpristay [2]
Industry sales = $15 billions
Acme market share = 20%
Emca market share = 17%

Acme market share in form of sales:
Acme marker share = 20% of $20 billion = (20/100)*20 = $3.00 billions

Emca market share in form of sales:
Emca market share = 17% of $20 billions = (17/100)*20 = $2.55 billions

Difference between the market shares for two companies as a percentage:
Difference = |20%-17%| = 3% of $20 billion
3 1
2 years ago
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