Which of the following is a likely reason for a portfolio manager to sell a stock index future short?
A) He believes the market will rise.
B) He wants to lock in current prices.
C) He wants to reduce stock market risk.
D) Both B and C are correct.
D
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A company originally issued 13,000 shares of $6 par value common stock at $12 per share The board of directors declares a 12% stock dividend when the market price of the stock is $22 a share. Which of the following is included in the entry to record the declaration of a stock dividend?
A) Stock Dividends is debited for $34,320. B) Stock Dividends is credited for $34,320. C) Stock Dividends is debited for $18,720. D) Paid-In Capital in Excess of Par-Common is credited for $18,720.
In which of the following circumstances is a gift tax return due?
A. Check for $28,000 to son. B. Transfer of stock valued at $30,000 to spouse. C. Payment of a friend's $17,000 tuition expense. D. None of the answers are correct.