Answer:
cost recovery = $23750
Explanation:
given data
cost = $100,000
to find out
cost recovery
solution
we know here value of asset in last quarter October is given $10000
and % of MACRS rate according to mid quarter for 4th quarter is 38%
so
cost recovery will be
cost recovery = 100000 × 38% ×
cost recovery = $23750
Answer:
10 years and 10 months.
Explanation:
Provided information we have,
Amount invested = $2,500
Earning interest rate = 3.4% annually
Compounded semiannually
Thus, period to be considered = 2 in a year
Interest rate =
Thus, effective interest rate = 1.7%
Now, according to future value of compounded rate @ 1.7% at a period 65 factor = 2.9913
Thus value will be $2,500 2.9913 = 7,478.25
That is approximate triple in value.
Thus, total period in number of years = 65/6 months = 10.833 years.
0.833 12 months = 10 months
That exactly means 10 years and 10 months.