Answer:
$1,000
Explanation:
Zeke's zipline sold 6 acres of land
The sales price of the land was $12,000
The adjusted basis of the land was $9,000
Zeke received an amount of $4,000 at the time of sale
The remaining $8,000 will be received next year
Therefore, the amount of gain that will be recognised by Zeke in the Current year can be calculated as follows
Sales price-adjusted basis/sales price
$12,000-$9,000/$12,000
= $3,000/$12,000
= 0.25
Amount received at the time of sale × 0.25
= $4,000×0.25
= $1,000
Hence Zeke will recognise a gain of $1,000 in the Current year.
Answer:
Tragedy of the Commons
Explanation:
The tragedy of the commons refers to a situation where the individual could access to the resources that are shared for their own interest.
So it is the market situation where the participant expolited the resources also there is no limited for accessing the resources
So the above term should be considered for the given situation
Answer:
5%
Explanation:
In order to compute the abnormal return first we have to find out the actual return which is shown below:
Actual return is
= ($21 - $18 + 1.32) ÷ ($18) × 100
= 24%
And, the expected return is
= Risk free rate of return + Beta × (Market rate of return - risk free rate of return
= 7% + 1.20 × (17% - 7%)
= 7% + 1.20 × 10%
= 7% + 12%
= 19%
So, the stock abnormal return is
= 24% - 19%
= 5%
