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please show calcualations for all questions Please use the following information to answer questions 12 through 17: On December 1, 2008 a company bought a

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Please use the following information to answer questions 12 through 17: On December 1, 2008 a company bought a call option costing $100,000 as a speculative investment. The call option gave the company the right to purchase 100,000 barrels of oil for $110 per barrel during April 2009. As of December 31, 2008 the call option had a value of $125,000. The company liquidated the call option on April 15, 2009 in exchange for $175,000. Which of the following accurately describes GAAP accounting for this call option? 12. The realized gain applicable to the year ending December 31, 2008 is: A. $25,000 B. $75,000. C. $50,000 D. $0 13. The unrealized gain applicable to the year ending December 31, 2008 is: A. $25,000 B. $75,000 C. $50,000. D. $0 14. The realized gain recognized on April 15, 2009 is: A. $25,000 B. $75,000 C. $50,000 D. $0 15. Which of the following is true regarding the GAAP accounting for this call option? A. The realized gain is $25,000. B. The realized gain applicable to the year ending December 31, 2008 is $75,000. C. The unrealized gain recognized on April 15, 2009 is $50,000. D. The call option will be reported on the December 31, 2008 balance sheet at $125,000 and a $25,000 unrealized gain will be reported as a component of income from continuing operations for the year ending December 31, 2008. 16. Which of the following is true regarding the GAAP accounting for this call option? A. The realized gain applicable to the year ending December 31, 2008 is $25,000. B. The unrealized gain applicable to the year ending December 31, 2008 is $50,000. C. The realized gain recognized on April 15, 2009 is $50,000. D. The call option will be reported on the December 31, 2008 balance sheet at $125,000 and a $25,000 unrealized gain will be reported as a component of stockholders' equity for the year ending December 31, 2008 17. Which of the following is true regarding the GAAP accounting for this call option? A. The unrealized gain applicable to the year ending December 31, 2008 is $25,000 and will be reported as a component of stockholders' equity. B. The unrealized gain applicable to the year ending December 31, 2008 is $50,000 and will be reported as a component of income from continuing operations for the year ending December 31, 2008. C. The realized gain recognized on April 15, 2009 is $75,000. D. The call option will be reported on the December 31, 2008 balance sheet at $125,000 and a $25,000 unrealized gain will be reported as a component of income from continuing operations for the year ending December 31, 2008

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