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tia_tia [17]
3 years ago
13

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2015, an auction

house sold a painting for a price of $1,080,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,660,000.
What was his annual rate of return on this painting? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
VLD [36.1K]3 years ago
5 0

Answer: -13.35%

Explanation:

Based on the information given in the question, the annual rate of return on this painting will be calculated thus:

Sales price of painting = $1,080,000

Cost price of painting = $1,660,000

The sales Price formula is given as

= Cost price × (1 +r)³

1080000 = 1660000 × (1+r)³

1,080,000/1,660,000 = (1+r)³

0.65 = (1 + r)³

Annual rate of return r will now be:

= 0.6506^⅓ - 1

= -13.35%

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tester [92]

Answer:

The answers are:

A) to record sales

Dr Accounts Receivable 853,600

Cr Sales Revenue 853,600

to record inventory

Dr Cost of Goods Sold 540,300

Cr Merchandise Inventory 540,300

B) to record sales returns

Dr Sales Returns & Allowances 114,200

Cr Accounts Receivable 114,200

to record inventory

Dr Merchandise Inventory 68,200

Cr Cost of Goods Sold 68,200

C) to record payment

Cr Cash 717,218

Cr Sales Discounts 22,182

Dr Accounts Receivable 739,400

8 0
3 years ago
an important aspect of any type of bankruptcy proceeding is the protection that the debtor has after filing for bankruptcy. the
Mariana [72]

Liquidation or the most frequent type of bankruptcy for individuals is straight bankruptcy. Your assets—anything you own with monetary value—are liquidated (sold) under the supervision of a court-appointed trustee in order to satisfy your debts.

<h3>How can bankruptcy be avoided?</h3>

preserving a positive cash flow, choosing a change in management, basing decisions on a business strategy, maintaining correct financial records, and maintaining excellent relations with creditors.

<h3>Which two primary categories of bankruptcy are there?</h3>

There are two distinct categories of bankruptcy cases out of these five types: 1) Straight/Liquidation, 2) Reorganization—the latter requires the designation of classes of claims and interests in the reorganization plan.

To know more about the Straight bankruptcy visit :-

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8 0
1 year ago
The following present value factors are provided for use in this problem.
Viefleur [7K]

Answer:

Answer is (A) $5,173

Explanation:

In calculating the net present value of an investment we discount the future cash flows by multiplying the future cashflows by the discounting factors attached to each year the cashflows will arise.

See Attachment for calculation done.

7 0
3 years ago
Three months ago, you purchased a stock for $54.14. The stock is currently priced at $57.36. What is the EAR on your investment?
Crazy boy [7]

Answer:

The EAR on the investment is 23.79%

Explanation:

Here, we are concerned with calculating the EAR on the stock investment.

Firstly, we start with calculating the return on shares

Mathematically, that is; P1 - P0

From the question P1 = $57.36 while P0 = $54.14

So Return on shares = $57.36-$54.14 = $3.22

We proceed with calculating the Return on shares in percentage

Mathematically;

Return on shares in % = Return on shares/P0 * 100

= 3.22/54.14 * 100 = 5.95%

Lastly we calculate the effective annual interest;

The effective annual interest = 5.95%/3 * 12 = 23.79%

5 0
3 years ago
What would be the marginal and average tax rates for a corporation with an income level of $100,000?
Kamila [148]

Answer:

Marginal tax rate = 34%

Average tax rate = 22.25%

Explanation:

The marginal tax rate is the rate of tax income earners incur on each additional dollar of income. As the marginal tax rate increases, the taxpayer ends up with less money per dollar earned than he or she had retained on previously earned dollars.

DATA

Income level = 100,000

Corporation Tax rates

0-50,000 = 15%

50,000 - 75,000 = 25%

75,000 - 100,000 = 34%

Marginal tax rate = 34%

Solution

Income tax owed = (15% x 50000)+(25% x 25000)+(34%*25000)  

Income tax owed = 22,250      

Average tax rate = 22,250/100000

Average tax rate = 22.25%

3 0
3 years ago
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