1) ABC has a put option to sell 50 XYZ shares at $100 each before March 15. XYZ share price decreased. What is likely the impact?

a) XYZ's net income will decrease

b) XYZ's OCI will increase

c) XYZ's OCI will decrease

d) XYZ's net income will decrease

2) ABC reports the folloeing income (loss) for both book and tax purposes for the first two years of its operations

Year Income (loss) Tax rate

2020 20,000 30%

2021 (40,000) 20%

If ABC uses the carryback provision where possible, what should be its tax receivable for 2021?

a) $6,000

b) $0

c) $4,000

d) $8,000