On december 1, 2020, hogan co. purchased a tract of land as a factory site for $780,000. the old building on the property was razed, and salvaged materials resulting from demolition were sold. additional costs incurred and salvage proceeds realized during december 2020 were as follows: cost to raze old building $70,000legal fees for purchase contract and to record ownership $10,000title guarantee insurance $16,000proceeds from sale of salvaged materials $8,000required: 1. in hogan’s december 31, 2020 balance sheet, what amount should be reported as land? 2. land was purchased to be used as the site for the consruction of a plant. a building on the property was sold and removed by the buyer so that construction on the plant could begin. the proceeds from the sale of the building should be: a. classified as other income. b. deducted from the cost of the land. c. netted against the costs to clear he land and expensed as incurred. d. netted against the costs to clear the land and amortized over the life of the plant.

Profits from using currency options and futures. on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda. com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2