Solved

KidCo Bought Forward Contracts on 20,000 Bushels of Corn at $1.65

Question 7

Multiple Choice

KidCo bought forward contracts on 20,000 bushels of corn at $1.65 per bushel.Corporate tax rates are 35.00%.Revenue is $100,000 and other costs are $60,000.Spot prices on corn are $1.75 per bushel.Calculate the after-tax net income.


A) $7,000 loss
B) $7,000 gain
C) $4,550 loss
D) $4,550 gain

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q2: Which of the following situations does NOT

Q3: Why are synthetics created and/or calculated when

Q4: Corn call options with a $1.75 strike

Q5: Two 6-month corn put options are available.The

Q6: Explain the relationship between options costs and

Q8: Corn call options with a $1.70 strike

Q9: From a strictly conceptual perspective,why would any

Q10: Given a 25% chance of a 600,000

Q11: Farmer Jayne bought a $1.70 strike put

Q12: KidCo Cereal Company sells "Sugar Corns" for