Joyce Passed Away on January 3 While on an Extended

question 26

Multiple Choice

Joyce passed away on January 3 while on an extended holiday cruise celebrating a very successful, and most profitable, previous year. Joyce was the chief executive officer of the Quillip Corporation. After the independent audit of Quillip's last year's financial statements was completed in February of this year, Joyce's estate received a $1,000,000 bonus check resulting from last year's corporate profits. Joyce's estate also sold Quillip stock for $500,000 in February of this year. Joyce originally purchased this stock eight years ago for $10,000. The stock was valued at $495,000 on her date of death. Solely based on the above facts, how much income in respect of a decedent should Joyce's estate report in the current year?

• A)$1,485,000
• B)$1,000,000
• C)$485,000
• D)$5,000

Gain knowledge of the social responsibility of businesses towards the community.

Comprehend the relationship between law, ethics, and business practices including statutory limitations.

Distinguish between business ethics and general ethics.

Differentiate between stakeholders and shareholders and understand their roles in business decisions.

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Definitions:

Market Equilibrium

A situation in a market where the quantity supplied equals the quantity demanded at a certain price level, resulting in no net shortage or surplus.

Arbitrage Opportunities

Situations where a financial instrument or security can be simultaneously bought and sold in different markets at a price discrepancy to generate risk-free profit.

Portfolio Beta

Portfolio beta measures the sensitivity of a portfolio's returns to movements in the market index. A beta greater than one indicates higher volatility than the market, while a beta less than one indicates lower volatility.

Betas

An indicator of the level of fluctuation or inherent risk in a security or portfolio relative to the broader market.