Answer:
$60,000
Explanation:
According to section 1250 of the Internal Revenue Service, the depreciation previously allowed as a deduction would now be taxed in the case of ordinary income at the highest tax level.
And, For this, the asset should be depreciated real property.
In the question, there is depreciation charged for apartment building so the same is eligible
The eligibility is allowed up to $60,000 and the same is to be considered
Answer:
New price (P1) = $72.88
Explanation:
Given:
Risk-free rate of interest (Rf) = 5%
Expected rate of market return (Rm) = 17%
Old price (P0) = $64
Dividend (D) = $2
Beta (β) = 1.0
New price (P1) = ?
Computation of expected rate on return:
Expected rate on return (r) = Rf + β(Rm - Rf)
Expected rate on return (r) = 5% + 1.0(17% - 5%)
Expected rate on return (r) = 5% + 1.0(12%)
Expected rate on return (r) = 5% + 12%
Expected rate on return (r) = 17%
Computation:
Expected rate on return (r) = (D + P1 - P0) / P0
17% = ($2 + P1 - $64) / $64
0.17 = (2 + P1 - $64) / $64
10.88 = P1 - $62
New price (P1) = $72.88
Answer:
Unsystematic risk
Explanation:
<em>The portfolio theory posits that the total risk on a collection of assets (i,e a portfolio) can be reduced by spreading the invested fund into different assets that are uncorrelated.</em>
<em>According to this model, the total risk on a portfolio is divided into systematic and unsystematic risks. The theory assumed by diversification, the unsystematic risk associated with a portfolio is eliminated.</em>
Unsystematic risk essentially are those unique individual assets for example. if we invest in company stock, risk associated with factors like bad management , law suit against a company, defect in company;s products are example of unique or systematic risks
Answer:
$9,700
Explanation:
The computation of the consumption is shown below;
= Durable goods + Services + Non-durable goods
= $3,000 + $6,000 + $700
= $9,700
We simply added the durable goods, services and the non-durable goods so that the consumption could be come
Hence, the consumption is $9,700
Therefore the same is to be considered
