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mixer [17]
3 years ago
8

Carol sold her investment property for $450,000 and had $21,000 in closing costs. The property had a beginning basis of $312,000

, capital improvements of $34,000, and depreciation of $80,000. What was Carol's capital gain?
Business
1 answer:
MAVERICK [17]3 years ago
3 0

Answer:

$163,000

Explanation:

New adjusted basis for Carol's property will be

the Beginning basis plus capital gain minus depreciation

=$312,000  + 34,000 - $ 80,000

=$346,000 -$80,000

=$266,000

The net amount realized from the sale is

Selling cost minus closing costs

= $450,000 -$21,000

=$429,000

The capital gain will be the amount received - new adjusted basis

=$429,000 - 266,000

=$163,000

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Answer:

5.65%

Explanation:

Last year a stock of $78.00 was bought

During the period of one year $2.70 was received in dividend and inflation averaged 3.2%

Today the shares was sold for $82.20

The first step is to calculate the nominal return

= ($82.20-$78.00+$2.70)/$78.00

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Therefore, the approximate real rate can be calculated as follows

= 8.85%-3.2%

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Hence the approximate real rate of return on this investment is 5.65%

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3 years ago
Suppose you just bought a 25-year annuity of $8,200 per year at the current interest rate of 12 percent per year. What is the va
zhannawk [14.2K]

Answer:

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Explanation:

by definition the present value of an annuity is given by:

a_{n} =P*\frac{1-(1+i)^{-n} }{i}

where a_{n} is the present value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

1. P=8,200, n=25, i=12%

a_{n} =8,200*\frac{1-(1+12\%)^{-25}}{12\%}

a_{n} =64,313.74

2. P=8,200, n=25, i=7%

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a_{n} =95,559.38

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4 years ago
The four-firm concentration ratio in this industry is ________. Group of answer choices 21% 79% 94% 58% 41%
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Answer:

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