6. On February 2, 2018 when a share of Easy Corp is available in the...
80.2K
Verified Solution
Link Copied!
Question
Accounting
6. On February 2, 2018 when a share of Easy Corp is available in the public market for $5 a share, X(in the long position) agrees to purchase 10 shares of Easy Corp from Y (in the short position) for $60 (the forward price, representing $6 per share on December 15, 2018. If on December 15, 2018, Easy Corp shares are trading at $6.25 per share, and the parties agree to cash settle the forward contract, what would X or Y receive? 7. On May 28, 2018, A bought a regulated futures contract for $ 75,000. On December 31, 2018 (the last business day of the tax year), the fair market value of the contract was $100,000. a) What gain or loss, if any, does A recognize on her return? b) Is the gain or loss treated as long term or short term and what type of gain is it
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
