On January 31 of the current year, Sophia pays $1,000 for an option to acquire 100 shares of Texas Corporation common stock for $105 per share at any time prior to December 31. As of December 31, Sophia had not exercised the option or sold it. Which of the following statements is correct?
A) Sophia may recognize a $1,000 STCL.
B) Sophia may recognize a $1,000 LTCL.
C) Sophia may recognize a $1,000 ordinary income.
D) Sophia may not recognize a loss.
A) Sophia may recognize a $1,000 STCL.
Because the option expires, Sophia recognizes a STCL of $1,000 in the current year.
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Answer the following statements true (T) or false (F)
1.In 1933 the U.S. government enacted the Buy American Act, which requires federal agencies to purchase materials and products from American suppliers if their prices are NOT unreasonably higher than those of foreign competitors. 2.In 2011 Whirlpool Inc. won an antidumping/subsidy case against clothes-washer imports from Samsung and LG. This resulted in antidumping/subsidy duties being imposed on imports of clothes washers from these foreign producers. 3.A subsidy granted to an import-competing producer tends to be absorbed by producer surplus and higher-costs of production. 4.For a tariff-rate quota, the within-quota tariff rate is more than the over-quota tariff rate. 5.A subsidy granted to import-competing producers is often preferred to an import tariff on the grounds that it results in a smaller deadweight welfare loss and allows consumption to remain unchanged.
A sample is random when ________
A) members are selected based on the ease with which they can participate in the survey B) every member of the population has an equal chance of being selected C) members are restricted to a specific subset of the population D) some members of the population are more likely to be selected based on specific criteria E) some members of the population are less likely to be selected based on specific criteria
Direct operating margin is:
a. the sum of departmental gross profit and direct operating expenses. b. the difference between departmental gross profit and direct operating expenses. c. the difference between departmental gross profit and indirect operating expenses. d. the difference between departmental gross profit and operating expenses. e. the difference between departmental net income and cost of goods sold.
When the market value of debt is the same as its face value, it is said to be selling at the:
A. yield value. B. par value. C. discounted value. D. premium value. E. maturity value.