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Elis [28]
3 years ago
13

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

auction house sold a statute at auction for a price of $10,710,500. Unfortunately for the previous owner, he had purchased it in 2010 at a price of $12,738,500. What was his annual rate of return on this sculpture
Business
1 answer:
xenn [34]3 years ago
3 0

Answer:

-3.41%

Explanation:

The computation of the annual rate of return is shown below;

We use the formula:

Future value = Present value × (1 + rate of interest)^number of years  

$10,710,500 = $12,738,500 × (1 + rate of interest)^5

($10,710,500 ÷ $12,738,500)^(1 ÷ 5) = (1 + rate of interest)

(1 + rate of interest) = 0.965913622

r = (0.965913622 - 1) × 100

= -3.41%

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b. Production

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On February 1, 2017, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on Januar
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Answer:

$72,800

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Book value:

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A) FIFO costing method

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Net income before tax       3560  3614 3497

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Net income                         2136 2168 2098

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