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Vlad1618 [11]
3 years ago
7

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction

house sold a sculpture at auction for a price of $10,361,500. Unfortunately for the previous owner, he had purchased it in 2000 at a price of $12,477,500. What was his annual rate of return on this sculpture?
Business
1 answer:
Neporo4naja [7]3 years ago
8 0

Answer:

-0.06 or -6%

Explanation:

The duration 't' of his investment is determined by subtracting the selling year by the purchasing year:

t = 2003-200 = 3\ years

The future value ($10,361,500) of this original investment ($12,700,500) at a rate 'r' for a period of 3 years is given by:

10,361,500=12,477,500*(1+r)^3\\r=\sqrt[3]{\frac{10,361,500}{12,477,500}} -1\\r=-0.06

His annual rate of return was -0.06 or -6%.

*Since he had a negative rate of return, the previous owner lost money in this investment

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Kahil Mfg. makes skateboards and uses a weighted average process costing system. On May 1, 2013, the company had 400 boards in p
shutvik [7]

Answer:

Equivalent Units     Materials        1700       Conversion  2630

<u>Cost per EUP Materials:</u>  38.308     Conversion : 19.55

Explanation:

The weighted average method can be calculated using the beginning inventory and the units started .

 

Kahil Mfg

Weighted Average Method

Particulars        Units          % Of Completion             Equivalent Units

                                        Materials    Conversion  Materials    Conversion

Beginning

Inventory     400                70                 85             280               350

<u>Units Started  3800          40                  60            1520             2280         </u>

<u>Equivalent Units                                                        1700              2630</u>

<u />

Beginning WIP Inventory costs

                                               Direct material             Conversion  

                                                     $ 4,349                        4,658

Current period costs

<u>                                                        60,775                        46,750        </u>

<u>Total Costs                                 65,124                          51,408            </u>

<u />

<u>Cost per EUP</u>

                                               65,124/1700              51,408/2630

                                                 38.308                      19.55

5 0
3 years ago
A $1 per unit tax levied on consumers of a good is equivalent to
Katen [24]

Based on accounting principles, a $1 per unit tax levied on consumers of a good is equivalent to "a $1 per unit tax levied on producers of the good."

This is based on the idea that the market reaches the exact equilibrium price irrespective of who is accountable for paying the money to the government.

In other words, when the government levies a tax on a good, producers are not exempted from the tax levy because that money will be recouped from the producers' sales or revenue.

Hence, in this case, it is concluded that tax on goods is inevitable to consumers and producers.

Learn more here: brainly.com/question/22680521

7 0
2 years ago
Harvey, a u.s. taxpayer, purchased 10 shares of mvc stock for $100 per share; one year later he sold the 10 shares for $130 a sh
Nonamiya [84]
<span>Harvey purchased 10 shares of mvc stock for = $100 per share
</span><span>one year later he sold the 10 shares for = $130 a share
</span>The price level increased in a year from = 140 to 147
<span>harvey's before-tax real capital gain =
</span><span>$1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax</span>
5 0
3 years ago
Your company introduced a new product one month ago. Since then, the Website has processed so many orders that the shipping and
blondinia [14]

Answer: The web team can create a FAQ page.

Explanation: FAQ is an abbreviation for Frequently Asked Questions. A FAQ page is a page on an c ecommerce store, where answers to important questions about a company or its products and services have been stored. This is done to clarify the uncertainties of customers and show them how the company or its products and services work.

This will greatly help the company reduce questions directed to sales team, as customers can easily find answer to their questions in the FAQ page

3 0
3 years ago
Ric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of hol
lutik1710 [3]

Answer: An investment that matures in five years

Explanation:

Both investments may be of equal risks, but by virtue of having different maturity dates, they will not be priced the same.

This is because the discount rate (opportunity cost) will discount the maturity value more the longer the investment is such that the present value is lower.

4 year investment

= 1,000 / (1.068)^4

= $768.63

5 year investment

= 1,000 / (1.068)^5

= $719.69

The 5 year investment will have a lower present value and will be charged lower.

4 0
3 years ago
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