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 $1,010,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,590,000. 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.) Annual rate of return %
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- Required Information [The following information applies to the questions displayed below.] On August 1 of year 0. Dirksen purchased a machine for $42,500 to use in its business. On December 4 of year 0, Dirksen sold the machine for $35,000. Use MACRS Table. (Loss amounts should be Indicated by a minus sign. Do not round percentages used for calculations. Round other Intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero If applicable.) b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale of the machine is sold on January 15 of year 1 Instead? Description Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) S AmountQ3. 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?Novak Manufacturing has old equipment that cost $51,000. The equipment has accumulated depreciation of $27,900. Novak has decided to sell the equipment. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) What entry would Novak make to record the sale of the equipment for $26,000 cash? (b) What entry would Novak make to record the sale of the equipment for $15,000 cash?