<u>Solution and Explanation:</u>
<u>Calculation of Elucid’s cost of recovery deduction for the year 2019 and 2020
</u>
Cost of recovery deduction for 2019 = Assets value * depreciation rate for the first year
( it has calculated by using MACR table)
= $ 25221.85
Therefore, the cost of recovery of deduction in 2019 is $25221.85
<u>Cost of recovery deduction for 2020 = Assets value * depreciation rate for the first year
</u>
( it has calculated by using MACR table)
= $42871.85
Therefore, the cost of recovery of deduction in 2020 is $42871.85
Answer:
Option (C) is correct.
Explanation:
Dealers profits come from the bid-ask spread in a dealer market. The bid-ask spread is a premium that come from bearing the risk. Most of dealers buy specific securities in wholesale and sell it in retail. The dealer's profit is the difference between the maximum purchase price made by the buyer and the least price at which seller wants to sell their securities. Hence, the difference between these two terms represents the dealer's profit that is bid-ask spread.
Answer:
Course cost netxt year: 919.8
Perpetuity fund at 6% return: 24,205.27
Perpetuity funds at 8% return: 15,858.63
Explanation:
1 student 300
3 student 900
it grows at 2.2% per year
the return on the fund will be of 6%
The cost of the couse for next year will be:
900 x (1+2.2%) = 900 x 1.022 = 919.8
The perpetuity will be calculate as follow:
Perpetuity fund: 24205.26316
Ifthe return is for 8% per year:
Perpetuity funds: 15858.62069
Answer:
b. increases to $206
Explanation:
Based on the above information given the holder of the call option will earn a profit if the price of the share increase to 206 because
the price of the stock have to increase to above $205 breakeven which is ($200+$5) in order for the option holder to earn a profit or make a gain.
Hence:
$200 + $5
= $205 (breakeven)
Therefore the holder of the call option will earn a profit if the price of the share increases to $206
The fact that mutual funds provide small investors with a diverse portfolio and experienced management is one of their appealing qualities.so statement is true.
<h3>What draws small investors to mutual funds?</h3>
Investors have access to a greater variety of investments through mutual funds than they could on their own. By pooling your funds, you may take advantage of economies of scale. The monthly contributions improve the investor's assets. Funds are more liquid because they are often less volatile.
The ability to diversify and thereby distribute risk over a number of investments is one of the reasons mutual funds are so well-liked by investors. People are drawn to mutual funds because they provide an opportunity for typical individuals to invest in professionally managed funds.
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