Answer:
D) All of the above are correct
Explanation:
In general terms, luxurious, or non-necessary items that have many substitutes are more elastic than daily necessities such as food or gasoline.
Flat-screen computer monitors are a luxury item, and a regular-screen monitor works just as well, therefore, if the price of them rises a lot, people can always buy regular monitors. The demand for this product is very elastic.
Same is true for grandfather clocks, which not only are expensive, but also niche, in the sense that they likely only appeal to a small segment of people.
As for cardboards, this product also has substitutes, and the demand for it in the long-term is more elastic because people will have more time to look for those substitutes.
Answer:
a.
9 recovery period years class
b.
$8,889 per year
Explanation:
a.
Buses are 9 years recovery period class , in which it is depreciated using historical method and it has 5 years GDS class life.
b.
Straight Line depreciation is a method of depreciation in which the cost of the asset net of residual value is divided over useful life.
We will depreciate this asset for only 9 years because it has 9 years class, even it will be kept for 10 years but the depreciation charged for 9 years.
Depreciation rate = ( Cost - Salvage Value ) / useful life = ($95,000 - $15,000) / 9 = $8,889
Depreciation charged in 2018 = $19,500
Answer:
1.1265
Explanation:
The computation of the portfolio beta is shown below:
= Stock Q portfolio percentage × beta of Stock Q + Stock R portfolio percentage × beta of Stock R + Stock S portfolio percentage × beta of Stock S + Stock T portfolio percentage × beta of Stock Q
= 0.25 × 1.28 + 0.25 × 0.45 + 0.15 × 1.78 + 0.35 × 1.22
= 0.32 + 0.1125 + 0.267 + 0.427
= 1.1265
1548
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