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olga55
1 hour ago
13

The stock price of Atlantis Corp. is $43 today. The risk-free rate of return is 10%, and Atlantis Corp. pays no dividends. A cal

l option on Atlantis Corp. stock with an exercise price of $40 and an expiration date 6 months from now is worth $5 today. A put option on Atlantis Corp. stock with an exercise price of $40 and an expiration date 6 months from now should be worth __________
a. $.05
b. $.14
c. $2
d. $3.95
Business
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Answer:

A. Dr Amortization expense $43,750

Cr Patents $43,750

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Explanation:

Journal entry preparations

A. Dr Amortization expense $43,750

($350,000÷8 years = $43,750)

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(Recording amortization for the patent)

C. Dr Amortization expense $14,000

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