The recognition of an expense does not depend on the payment of cash

The state of Transas has set a maximum interest rate of 12 percent on loans. Matt borrows $10,000 from Tony to pay off a gambling debt. Both are residents of Transas

They sign a contract, which states that Matt would have to pay $1,500 as interest in one year to pay off the loan. Later, Matt gets to know about the state usury limit and sues Tony. What is the nature of the contract between Matt and Tony? A) It is illegal as it violates gambling statutes. B) It is legal as both parties were competent when the contract was signed. C) The contract is void as it violates usury laws. D) The contract is void as it is a contract to commit a crime.

Assume the initial margin on a Swiss franc futures contract is $2,000

If an individual purchases a contract at $0.78 per franc and the contract involves 125,000 Swiss francs, what return on invested capital will the investor receive if the price per franc moves to $0.80? A) 3% B) 50% C) 100% D) 125%