Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,371,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,497,500. What was his annual rate of return on this sculpture
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Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,371,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,497,500. What was his annual
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- Al Aznar Company is manufacturer of furniture. At the end of 2018, they have inventory worth $ 14500 and out of that $ 4500 worth inventory is damaged. The company decided to repair the inventory and sell it for 3500. The repair cost is $ 500.1. When do a company write down its inventory value (cost) to the Net Realizable Value?2. Imagine that the company decided to sell the damaged inventory for $ 3200 without spending any amount for repairing, how much amount need to write off from the value of inventory at the end of the period?A small company purchased a state-of-the-art copier machine in 2012 for $5,995. Five years later the company sold the used copier for $3650. Find the absolute change in the value of the copier. Show your work. Find the relative change in the value of the copier. Show your work. The value of the copier has _________________________ by _________%.The Goodson Company is a chain of retail electronics stores. How much of a loss can Goodson deduct in each of the following cases? Explain. a. An employee drops a 65-inch 3D television, cracking the plastic casing on the back. The television normally sells for 3,300. The cost of the set is 2,400, and Goodson sells the damaged set for 1,500. b. The company replaces its inventory system. The old system cost 45,000 and has a basis of 16,000. The company sells the old system for 7,500. The new system costs 75,000. c. A flood damages one of Goodsons retail stores. The building suffers extensive water damage. The basis of the building is 60,000, and the cost of repairing the damage is 72,000. The insurance company reimburses Goodson 50,000. d. The owner of Goodson sells a complete home entertainment center (e.g., projection TV, DVD, stereo system) to his sister for 7,000. The usual sales price is 8,500. The system costs 6,300. e. Assume the same facts as in part d, except that the owner sells the home entertainment center to his sister for 5,500. f. The owner of Goodson finds that the controller has embezzled 10,000 from the company. Before the owner can confront the controller, the controller leaves town and cannot be found. g. Upon arriving at the companys headquarters, the vice president of sales finds that someone has broken in and stolen three computers. The damage to the outside door is extensive. The cost of repairing the door is 1,500, and the cost of replacing the three computers is 9,500. The original cost of the computers totals 10,500. Goodsons basis in the computers is 5,000. The thieves also stole 350 from the petty cash fund. Goodson files a claim with its insurance company and receives 4,800.
- Five years ago, an industrial engineer deposited $10,000 into an account and left it undisturbed through now. The account is now worth $27,000. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. What is the purchasing power of the $27,000 with respect to the purchasing power of dollars 5 years ago? The purchasing power of the $27,000 is $Subasta Corporation was able to acquire second hand goods worth P100,000 in an auction. The goods can be sold as is for P120,000 or reconditioned at a cost of P30,000 and sold for P170,000. 1. Identify the irrelevant cost in this problem. Why? 2. Which alternative should be chosen: sell as is or recondition. Why? 3. What is the opportunity cost of reconditioning the goods. Why?Mr. Gaetano has sold a number of assets in the current year: An extensive coin collection, which has a current FMV of $23,500. The total cost of acquiring the coins is $17,600. There were no selling costs. A rare 17th-century manuscript he inherited from his mother. His mother paid $4,000 for the manuscript, which had an estimated FMV of $42,000 at the time of her death. Since several copies of the same manuscript have been found (since her death), and so he had to sell it for $8,500. A Lawren Harris oil painting that he acquired for $275,000. The painting sold for $350,000 and the auction house charged a commission of 20% on the sales price. REQUIRED: calculate the capital gain or loss for each. Also, indicate which type of property this would be considered.
- On January 1,2014 the Mayfair Company has machinery on the books that originally cost $100,000. It sold the machine and recorded a $1,000 gain. Which of the following is true? Multiple Choice Mayfair sold the asset for less than its book value Mayfair sold the asset for more than its book value Mayfair sold the asset at book value Mayfair violated GAAP. None of the other alternatives are correctOn January 2, 2004, Salonga Company purchased a large quantity of personal computers. The cost of these computers was P5,000,000. On the date of purchase, the management estimated that the computers would last approximately 5 years and would have a salvage value at that time of P500,000. The company used the double-declining balance method of depreciation. During 2005, the management realized that technological advancements had made the computers virtually obsolete and that they would have to be replaced. Management now believes that the useful life of the computers should have been 3 years from the date of acquisition and decided to depreciate the computers using the new estimate.Q3. In 1990 an anonymous private collector purchased a painting by Picasso entitled Angel Fernandezde Soto for $4,450,000. The painting was done in 1900 and valued then at $1800. If the painting wasowned by the same family until its sale in 1990, what is the interest rate they receive on the $1800investment?
- Wildhorse Inc. recently replaced a piece of automatic equipment at a net price of $5,360, f.o.b. factory. The replacement was necessary because one of Wildhorse’s employees had accidentally backed his truck into Wildhorse’s original equipment and made it inoperable. Because of the accident, the equipment had no resale value to anyone and had to be scrapped. Wildhorse’s insurance policy provided for a replacement of its equipment and paid the price of the new equipment directly to the new equipment manufacturer, minus the deductible amount paid to the manufacturer by Wildhorse. The $5,360 that Wildhorse paid was the amount of the deductible that it has to pay on any single claim on its insurance policy. The new equipment represents the same value in use to Wildhorse. The used equipment had originally cost $64,800. It had a book value of $48,000 at the time of the accident and a second-hand market value of $55,020 before the accident, based on recent transactions involving similar…Dan bought a hotel for $2,600,000 in January 2011. In May 2015, he died and left the hotel to Ed. While Dan owned the hotel, he deducted $289,000 of cost recovery. The fair market value in May 2015 was $2,800,000. The fair market value six months later was $2,850,000. What is the basis of the property to Ed? What is the basis of the property to Ed if the fair market value six months later was $2,500,000 (not $2,850,000) and the objective of the executor was to minimize the estate tax liability?Outlook Corporation sells gas stoves. Its sales had a total of P250,000 during its first year of operation. All its sales were installment sales and it managed to collect only P80,000 in the said year.Outlook repossessed one gas stove after a customer defaulted in payment. The balance of the receivable pertaining to the repossessed stove was P25,000 at the time of repossession. How much is the deferred gross profit at year end if the gross margin ratio is 25%?a. P145,000 c. P170,000b. P36,250 d. P42,500