Question

In: Accounting

1. Assume that Mr. Shulman owned 100 shares of Exxon Mobile stock and 250 shares of...

1. Assume that Mr. Shulman owned 100 shares of Exxon Mobile stock and 250 shares of General Electric stock when he died on December 1. The highest selling price for Exxon Mobile on that day was 41.24; the lowest selling price was 40.40. The highest selling price for GE on that day was 39.35; the lowest selling price was 38.95. Calculate the fair market value of all of the stock as of December 1.

2. In December 2003, Mrs. Nichols gave gifts of $20,000 to her son, Bruce; $20,000 to her son and daughter-in-law, David and Cheryl; $15,000 to a favorite nephew; and $10,000 to each of her seven grandchildren. What amount must Mrs. Nichols report to the IRS on her 2003 gift-tax return? Please show your calculations.

Solutions

Expert Solution

ekkarill92 answered 3 months ago
Next > < Previous

Related Solutions

1.) Assume you purchased 100 shares of Zoomer Corp's stock on margin at the beginning of...
1.) Assume you purchased 100 shares of Zoomer Corp's stock on margin at the beginning of the year for $40 per share. You use $2500 of your own funds and borrow $1500 from the broker. Maintenance Margin requirement is 25%. a) At what price would you receive a margin call (ignore interest)? b) Annual interest cost is 4% on the margin account loan. What is your rate of return on your investment if Zoomer's stock is $44.50 per share after...
Mr. Suphi buys 100 shares of ABC stock on margin. The share price is $50 and...
Mr. Suphi buys 100 shares of ABC stock on margin. The share price is $50 and the initial margin is 50%. What is the maintenance margin on the account if the margin call is triggered at a share price of $35? Ignore the interest on the loan. b) Mr. Suphi buys 200 shares of EFG stock on margin. The share price is $60 and the initial margin is 50%. What is Mr. Suphi’s rate of return on equity if he...
1) Assume you buy 100 shares of stock at $40 per share on margin. The initial...
1) Assume you buy 100 shares of stock at $40 per share on margin. The initial margin is 50%. If the price rises to $55 per share, what is your percentage gain on the initial equity?
a. Assume that you would like to buy 100 shares of a stock that is currently...
a. Assume that you would like to buy 100 shares of a stock that is currently priced at $ 70. The initial margin is 75% and maintenance margin is 35%. How much would the total purchase amount to in dollars. How much in total cash of your own do you need in dollars in this example? How much will you be able to borrow in dollars in this example? b. Show your total dollar amount of investment and your results...
Clarence Corporation has one hundred (100) shares of stock outstanding which are owned by Shirley and...
Clarence Corporation has one hundred (100) shares of stock outstanding which are owned by Shirley and Deidra who are unrelated. Shirley owns forty (40) shares of the stock and Deidra owns sixty (60) shares of the stock. Clarence Corporation redeems twelve (12) of Shirley’s shares of stock for $800 per share. Shirley paid $200 per share for her stock three (3) years ago. Assuming Clarence Corporation has significant Earning And Profit (E&P), which of the following is correct regarding the...
Question a) Mr. Jones purchased 250 shares of Ruth Limited on February 1 of the current...
Question a) Mr. Jones purchased 250 shares of Ruth Limited on February 1 of the current year for $20 per share. On May 1 of the current year, he purchased 100 more shares for $25 per share. On June 20 of the current year, Mr. Jones sells 100 shares for $15 per share. His allowable capital loss on June 20 is $643.00. True False Question c) Which of the following is not included in ITA 53 as an adjustment to...
You own 250 call options on Exxon that expire in 6 months. The current stock price...
You own 250 call options on Exxon that expire in 6 months. The current stock price of EXXON is 240. The interest rate is 2 percent, the standard deviation of EXXON stock is 28 percent, and the strike price is 250. Using the Black-Sholes formula, graph the value of your options as the standard deviation goes from 20 to 50 percent. Please make an Excel Graph with 50 data points and show the formulas used I will thumbs up your...
You own 250 call options on Exxon that expire in 6 months. The current stock price...
You own 250 call options on Exxon that expire in 6 months. The current stock price of EXXON is 240. The interest rate is 2 percent, the standard deviation of EXXON stock is 28 percent, and the strike price is 250. Using the Black-Sholes formula, graph the value of your options as the standard deviation goes from 20 to 50 percent.
1. Assume you sold short 100 shares of common stock at $50 per share. The initial...
1. Assume you sold short 100 shares of common stock at $50 per share. The initial margin is 60%. What would be the maintenance margin if a margin call is made at a stock price of $60? 2. Assume you sell short 100 shares of common stock at $45 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $40/share? The stock paid no dividends during the period, and you...
FINANCE MR. Smith buys 100 shares of XYZ stock with cash. His brokerage firm charges a...
FINANCE MR. Smith buys 100 shares of XYZ stock with cash. His brokerage firm charges a commission of $10 per transaction. Mr. Jones also purchases 100 shares of XYZ stock. He borrows the amount needed to complete the purchase from a bank. The bank charges interest at the continuous risk-free rate of 4% (annually). Mr. Jones' brokerage firm charges a commission of 1% of each transaction amount. The current price of one share of XYZ stock is 18.94. Calculate the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT