Answer all questions appropriately
w!\" 70.000$155,000327Menni9t0r_ O A" Income Tax Expense 49,600 Income Tax Payable 49,600 0 3' Income Tax Expense 54,400 Income Tax Payable 49,600 Deferred Tax Liability 4,800 Cross hedge ( Part 1 & 2) Part 1 (Warming up) It is the end of May 1997. A cottonseed meal producer in Georgia would have the information about the acreage committed to cotton, and his expected production of cottonseed meal is 1,000 tons. On May 28, 1997, cottonseed meal is trading at the price of $197 per ton in Atlanta. The producer expects cottonseed meal prices to be much lower by the end of October 1997. To protect himself against the falling price, the cottonseed meal crusher decides to cross hedge using soybean meal futures. The May 28 soybean meal futures closing price is $280.30 per ton (CBOT; 1 contract = 100 tons of soybean meal). (Caution: it is not soybeans futures.) The producer decides to place the cross hedge on May 28, 1997. To place the cross hedge, he needs to determine the number of soybean meal futures contracts necessary to offset 1,000 tons of cottonseed meal. The cottonseed meal producer knows the following information. The correlation between the price changes of cottonseed meal and soybeans meal (p) = 0.84. The standard deviation of the price change of cottonseed meal (Oas) = $7.2. The standard deviation of the price change of soybean meal (OAF) = $6.0. Question) Find out the optimal hedge ratio. Question) Compute the optimal number of futures contract. Question) Compute the measure of hedging effectiveness.Question Completion Status: Attach File Browse My Computer Browse Content Collection QUESTION 32 The following facts relate to Krung Thep Corporation: 15 points Save 1. Deferred tax liability, January 1, 2015, $40,000 2. Deferred tax asset, January 1, 2015, $0 3. Taxable income for 2015, $115,000 4. Pretax financial income for 2015, $200,000 5. Cumulative temporary difference at December 31, 2015, giving rise to future taxable amounts, $220,000 6. Cumulative temporary difference at December 31, 2015, giving rise to future deductible amounts, $35, 000 7. Tax rate for all years, 40% 8. The company is expected to operate profitably in the future. Instructions: a Compute income taxes payable for 2015. b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015. Prepare the income tax expense section of the income statement for 2015, beginning with the line "income before income taxes." Browse My Computer Browse Content Collection Attach FileAdjustments to income (special deductions allowed to either itemizers or non-itemizers) Total Income 6 Computed Income Tax Liability for the year Income Tax Liability after Nonrefundable Credits Standard Deduction or Itemized Deductions 12 Taxable Income Income Taxes Paid and Refundable Credits 15 Taxes Due or Refund to be Received Deduction for Qualified Business Income Tax Credits (nonrefundable) Question 2 (1 point)
