Answer and Explanation:
The Residential properties are depreciated over 27.5 years
Then:
The total amount of depreciation is $15,635. We assume that the property is sold in 2015.
Therefore, depreciation will be allowed only for 5 years such that the annual depreciation will be $3127 for 5 years.
He saves $781.75 annually (0.25*$3127).
If he holds the property for 5 years and then sells it, his 5 years' worth of depreciation will have saved him $3908.75 and it a $10,000 gain taxed at a maximum of 15%
$10,000 gain taxed at a maximum of 25% (or 33% if the gain pushes the taxpayer into a higher tax bracket).
$10,000 gain taxed at a maximum of 25%
Answer:
b) inseparability
Explanation:
Inseparability: It refers to that thing that is not separate from each other. It is a combined service. Just like if a product is sold to a customer so along with it the repairing and warranty expenses are free of cost.
In the given example. the players and the gamer are treated as one which means that they are not inseparable.
So, all other options are incorrect except b. option
The value of the best choice is called ' Opportunity Cost' in economics.
I’m not sure but I think it’s A
sorry if it’s wrong
Answer:
The Beta is 1
The required return increases to 13%
Explanation:
The formula for required return is given below:
Required Return = Risk-Free Rate of Return + β(Market Return – Risk-Free Rate of Return)
required return is 11%
risk-free rate of return=7%
Beta is unknown
market return-risk free rate of return is market risk premium is 4%
11%=7%+beta(4%)
11%-7%=beta*4%
4%=beta*4%
beta=4%/4%
beta=1
If the market risk premium increased to 6%,required return is calculated thus:
required return=7%+1(6%)
required return =13%
This implies that the riskier the stock, the higher the market risk premium, the higher the required return to investors.
