Chapter 24, Problem 1PSA

What is the gross profit on these general accounting question?

In the table below, choose the financial instrument to list on the left side that best explains the example on the right side. Types of financial instrument to select from: financial asset, financial liability, equity, compound instrument, basic option, swap, forward, future, warrant, put option, or call option.    Type of financial instrument  Example    A company contracts with an investment bank to pay the bank prime rate + 1% interest on $25 million of debt in exchange for receiving 5% from the bank.    Company Abacus issues $10 million debentures with warrants to purchase shares for $10/share within 8 years.    A company contracts to sell 100 barrels of oil at $110/barrel in March on the Chicago Mercantile Exchange.    Note payable    A company purchases the right but not the obligation to purchase 5,000 shares in another company at $15 each over a 12-year period.    Company X contracts to buy 1,000 oz of silver at $40/oz on March 15,…

General Accounting