The RJN Corporation has issued warrants where each warrant offers the holder the right to purchase one share of RJN's common stock for $20 per share. The warrants are exercisable anytime within the next five years. Chelsea purchases 80 warrants for $2 each. Three years after the purchase, the market price of RJN common stock has risen to $25 per share. Chelsea exercises the warrants and immediately sells the RJN stock at the market price. The result of these transactions is that Chelsea has realized
A) a net short-term capital gain of $400.
B) a net long-term capital gain of $400.
C) a net long-term capital gain of $240.
D) a net short-term capital gain of $240.

Answers

Answer 1

The result of these transactions is that Chelsea has realized  net long-term capital gain of $240.

Capital gain is the increase in the value of an asset after the asset has been bought. It was the price at the time the asset was bought is lower than the value of the asset at the time it is sold. Capital gain is determined by subtracting the purchase price of the asset from the selling price of the asset.

Types of capital gain

Short-term capital gain: it is the gain realised on an asset that is held for less than a yearLong-term capital gain: it is the gain realised on an asset that is held for more than a year.

Chelsea's net long-term capital gain: 80 x {$25 - ($20 + $2)] = $240.

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Related Questions

In modern society, stratification is usually determined by income and other forms of wealth, such as stocks and bonds. Group of answer choices False True

Answers

According to socio-economic theory, it is TRUE that in modern society, stratification is usually determined by income and other forms of wealth, such as stocks and bonds.

This implies that people are mostly rated, valued, and accorded based on their material possession.

It is through material wealth that society is divided into the upper class, middle class, and lower class.

However, it should also be noted that power and prestige are also significant factors in stratification, as can be observed by the value placed on political officeholders.

Hence, in this case, it is concluded that the correct answer is "True."

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Before international travel via ships, many island countries existed in a state of self-sufficiency known as

Answers

The name which is given to the state of self-sufficiency which existed in  many island countries before international travel via ships is known as:

Autarky

According to the given question, we are asked to state the name which is given to the state of self-sufficiency which existed in  many island countries before international travel via ships.

As a result of this, we can see that before international travel via ships, many island countries existed in a state of self-sufficiency known as autarky where an island or group of people do not have access to goods from other places and were self sufficient.

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In cases where there are frequently occurring material combinations and common delivery quantities for a customer, this data can be stored in the form of a

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When frequent material combinations and common delivery quantities for a customer occur, this data can be stored in the form of an item proposal.

This can be defined as a list of orders and materials that are often supplied by the company to a particular customer, so the item proposal list will help the organization save time when developing a pre-arranged order entry.

The item proposal is therefore stored in SAP and can be changed whenever necessary.

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How much will Terrill and Natalia be required to pay in property tax per year? $15 $150 $1,500 $15,000.

Answers

Answer:

1,500

Explanation:

Hope this helped

Answer:

$1,500

Explanation:

see picture

Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called:

Answers

Answer:

The Answer is Car Insurance

True or false: Employees prefer to receive ISOs rather than NQOs because the entire difference between the sales price and the exercise on the subsequent sale of the stock may be taxed as a long-term capital gain if the required holding periods are met. True false question. True False

Answers

Answer:True

Explanation:

The country of Lydania has a complex network of pipelines that transports natural gas for millions of people. These pipelines are specifically designed for the transportation of natural gas and have limited uses outside the natural gas industry because of inherent industry regulations. These pipelines exemplify a(n) _____.A. sunk costB. transaction-specific assetC. intangible assetD. greenfield entry

Answers

The answer is 16 because I did some calculations and research

If a firm's marginal revenue is below its marginal cost, an increase in production will usually: a. increase profits. b. leave profits unchanged. c. decrease profits. d. increase marginal revenue.

Answers

Answer:

D. increase marginal revenue

Explanation:

If marginal revenue is less than marginal cost then they are producing too much product and need to decrease production until marginal cost and marginal revenue are equal.

Tell me something cool.

Answers

Answer:

I am double jointed and as a baby had a tounge tie

Explanation:

What's the importance of the formal and informal business sectors

Answers

Answer:

The informal sector represents a fundamental component of the economic structure of many developing countries.

Formal employment is government regulated, and workers are insured a wage and certain rights. Informal employment takes place in small, unregistered enterprises.

Explanation:

an advantage of the use of computers to maintain and compile accounting information is ______.

Answers

Answer:

Speed

Explanation:

an advantage of the use of computers to maintain and compile accounting information is speed.

Which component of table setting would include the wineglass?
The _____ component of table setting would include the wineglass.

Answers

The wine glass goes on the left

what is the recommended compression rate for high-quality cpr

Answers

Answer:

Compression rate of 100-120/min

Explanation:

High-quality CPR performance metrics include:

Chest compression fraction >80%

Compression rate of 100-120/min

Compression depth of at least 50 mm (2 inches) in adults and at least 1/3 the AP dimension of the chest in infants and children

No excessive ventilation

100-120/min



I made it short

*he got it from otherr wbsite anyway*

Gus' Grill, a food truck restaurant in an urban city, worked with a local bank for a __________. This unsecured source of funds was available for Gus to tap into if he needed immediate funds for the business. He liked the fact that he had a cushion and only used it if he fell short of funds.

Answers

Considering the situation described above, Gus' Grill, a food truck restaurant in an urban city, worked with a local bank for "Line of Credit."

This is because Line of Credit is a term used in the financial industry to describe a predetermined borrowing threshold that can be accessed or tapped into at any given period.

Given that the unsecured source of funds was available for Gus to tap into if he needed immediate funds for the business, this is considered the Line of Credit.

Line of Credit is usually agreed between banks and clients.

Hence, in this case, it is concluded that the correct answer is Line of Credit.

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according to liquidity preference theory, the money-supply curve is

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Answer:

According to liquidity preference theory, the money-supply curve would shift if the Fed engaged in open-market operations. According to liquidity preference theory, the Fed controls the money supply directly. ... If the Fed conducts open-market purchases, the money supply decreases and aggregate demand shifts right.

which of these are conditions for long-run equilibrium in the aggregate demand–aggregate supply model?

Answers

Answer:

-Correct answer(s)

Long-run aggregate supply equals aggregate demand

Short-run aggregate supply equals aggregate demand

-Incorrect Answer(s)

u<u*

u>u*

Explanation:

The economy will gradually progress toward its potential production, according to the aggregate demand and long-run aggregate supply model. The aggregate demand and supply curves intersect at this point to form the long-run equilibrium.

What is the long-run equilibrium in the aggregate demand–aggregate supply (AD-AS) model?

AD-AS model is a graphical model used to understand economic fluctuations, which contains aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS).

The long-run aggregate supply (LRAS) curve relates the level of production produced by businesses with the price level over time.

At any price level, the economy eventually reaches its natural level of employment and potential output. This result has given us our long-run aggregate supply curve.

When there is only one level of output at whatever price level, the long-run aggregate supply curve is a vertical line at the potential level of output for the economy.

Therefore, these are the conditions of the long-run AD-AS model.

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the economic inefficiency of a monopolist can be measured by the

Answers

Answer:

The economic inefficiency of a monopolist¬ can be measured by the deadweight loss, which is the loss in total surplus.

The pedals of the bicycle should have reflectors on them that can be seen from
feet away

Answers

The tires and the pedals and on the helmet

The pedals of the bicycle should have reflectors on them that can be seen from at least 200 feet away.

California vehicle code (CVC) mandates that cyclists who commute at night attach a white safety light to the front of their bikes. Within 300 feet, the cyclist's front and sides should be able to plainly see this white light. If you don't feel comfortable mounting this light on your bike, you may also lawfully wear it on your person (such as on a helmet).

The CVC mandates that cyclists wear reflectors on their shoes or ankles or attach white or yellow reflector pedals to their bicycle's pedals. You should be able to see these reflectors from at least 200 feet away.

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Your friend Jeanne is searching for a job and has decided to update her LinkedIn profile. She wants to enhance the credibility of her profile, and she asks for your advice. What advice should you give Jeanne

Answers

I would suggest she’d ask for recommendations from instructors, employers, and colleagues.

Define the word profit in buisness

Answers

Explanation:

Profit describes the financial benefit realized when revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity in question. Profit is calculated as total revenue less total expenses.

Answer:

Money left after costs are paid .

Explanation:

progressive taxes operate on the assumption that those with _____ can afford to contribute a higher percentage of their income in taxes.

Answers

Progressive taxes operate on the assumption that those with higher income can afford to contribute a higher percentage of their income in taxes.

Taxation can be defined as the involuntary or compulsory fees that are usually levied on individuals or business entities by the government, so as to generate revenues used in funding public institutions and activities.

Generally, there are three (3) types of taxation used by the government and these are;

1. Regressive taxation

2. Proportional taxation.

3. Progressive taxation.

A progressive taxes involves charging or levying individuals that are having higher incomes a higher percentage of their total income in taxes.

For example, Citizen John pays 30% on $60,000 and Citizen Ann pays 14% on $26.000.

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The principle of progressive taxes is based on the assumption that those with higher incomes can afford to contribute a higher percentage of their incomes in taxes.

The principles for a progressive tax system are:

tax paid is based on the taxpayer's abilitya lower tax rate is imposed on low-income earnersit is not regressive and does not use a flat ratecreates tax brackets, grouping taxpayers by income ranges.

Thus, the progressive tax system operates with the assumption that the higher the income, the higher the tax paid.

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Firms will only produce more if they can

Answers

Answer:

At any given quantity, total revenue minus total cost will equal profit. One way to determine the most profitable quantity to produce is to see at what quantity total revenue exceeds total cost by the largest amount. ... At output levels from 50 to 80, total revenues exceed total costs, so the firm is earning profits.

The demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as _____.

Answers

Considering the situation described above, this demand for bread can be categorized as a "static demand."

This is because a static demand is a type of demand that is not flexible at any given point.

Also, demand is said to be static when the change in quantity demand of a commodity is relative to a change in the unit price of a commodity.

Thus, in this case, when the demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year, this is an example of a Static demand because it is stable throughout the year.

Hence, in this case, it is concluded that the correct answer is "Static Demand."

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a price variance is the difference between the ______.

Answers

A price variance is the difference between the actual price and the standard price multiplied by the actual amount of the input.

Price variance is usually caused by some some factors such as changes in

the demand and supply of goods, the bargaining power of the customer and also the quantity of items ordered at that point in time.

It is used in budget allocations to determine the estimated prices of goods

and services in order to prevent shortage of the funds allocated.

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A firm having its equity shares traded on one or more foreign exchanges, in addition to the home country stock exchange, is

Answers

Dual-listing is the answer

The first step in preparing a flexible budget is to identify the fixed and variable cost components. prepare the budget for each activity level by multiplying each variable cost per unit by the activity level and then adding the fixed costs. identify the relevant activity levels. None of these choices are correct.

Answers

Answer:identify activity levels

Explanation:

planning budgets are sometimes called ______ budgets.

Answers

I believe the answer is static!

Planning budgets are sometimes called static budgets.

What is static budgets?

A static budget is one that stays the same regardless of changes in activity levels. As a result, the budgeted amounts remain unchanged even if actual sales production differs dramatically from the projections made in the static budget.

For instance, a corporation using a static budget would establish a projected expense for the duration of the time, such as $30,000 for a marketing campaign. Managers are therefore responsible for sticking to the budget, regardless of how the actual cost of running the campaign performs throughout the course of the period.

Budget set for a single level of production output is known as a static budget. Likewise known as a master budget. Flexible Budget: A condensed budget that is simple to calculate for various production volume levels. Separates

Thus, static budgets.

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Why is it important to know the business operations?:​

Answers

Answer:

Without clear, concise management of operations, an organisation will struggle to remain cooperative and efficient, especially as they grow in size and workload.

Explanation:

Hope this helps

If people do not trust the value of a nation's money, companies will not use it as payment for goods and services. This describes the _____ characteristic of money.

Answers

This describes the  acceptability characteristic of money.

Money is anything that is generally chosen and accepted by a community, people, organizations, government as a medium of exchange and settlement of value.

Money comprises exchange in the form of coins and banknotes; coins and bank notes which is backed by a country's law as a form of legal tender hence acceptable by all.

There are several characteristics of money which includes durability, portability, acceptability, uniformity and limited in supply.

However, the fact that companies trust the value of a nation's money and also use it as payment for goods and services, describes the acceptability as characteristics of money.

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There is a 20 percent probability the economy will boom, 70 percent probability it will be normal, and a 10 percent probability of a recession. Stock A will return 18 percent in a boom, 11 percent in a normal economy, and lose 10 percent in a recession. Stock B will return 9 percent in boom, 7 percent in a normal economy, and 4 percent in a recession. Stock C will return 6 percent in a boom, 9 percent in a normal economy, and 13 percent in a recession. What is the expected return on a portfolio which is invested 20 percent in Stock A, 50 percent in Stock B, and 30 percent in Stock C?a.) 8.25%b.) 9.50%c.) 7.40%d.) 8.33%e.) 9.45%

Answers

The answer is B because I don’t some calculations and got that answer
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