On July 1, 2012, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted’s basis in his residence is $35,000. The expenses associated with the sale of his home total $20,000. On December…
suppose the price of widgets falls from $7 to $5 and consumption of widgets rise from 15 widgets a month to 25 widgets. calculate your price elasticity of demand of widgets. what can you say about your price elasticity of…
William sold Section 1245 property for $25,000 in 2012. The property cost $35,000 when it was purchased 5-years ago. The depreciation claimed on the property was $16,000. For all parts, show your math: (a) Calculate the adjusted basis of the…
You are analyzing some tow-variable data and compile the following “relationship” between variables “x” and “y”. Calculate the relationship coeffeicient for this data. x = 20,18,24,20,22,14,8,4,7,5,18 y = 16,12,18,17,21,10,9,6,3,8,10
Calculate the required rate of return for Apple Inc, assuming that the risk free rate of return is 7%, the expected market return is 11%, Apple has a beta of 2.0, and Apple realized rate of return has averaged 14%…
Allied Laboratories is combining some of its most common tests into one-price packages. One such package will contain three tests that have the following variable costs: Disposable syringe $3.00 $3.00 $3.00Blood Vial 0.50 0.50 0.50Forms 0.15 0.15 0.15Reagents 0.80 0.60…
Consider an investor who, on January 1, 2011, purchases a TIPS bond with an original principal of $100,000, an 8% annual (or 4% semiannual) coupon rate, and 10 years to maturity. a. If the semiannual inflation rate during the first…
GAMMA produces over a hundred different types of residential water faucets as its Delta, Florida plant .This plant uses activity -based costing to calculate product costs. The following table summarizes the plant’s overhead for the year and the cost drivers…
Price Leadership. Biking Magazine is a dominant price leading firm. Wheel Deal and Free Wheel are competing magazines. Biking: TCb = $17500 – 0.50Qb + $0.000005QB2; MCb = ΔTCb/ΔQb = -$0.50 + $0.00001QbWheel Deal: TCw = $15000 + 2Qw +…
Investigators followed a population of 2,000 women aged over 65 years who did not have osteoporosis, over a 10-year period and measured the number of cases of osteoporosis diagnosed during that time-period. The investigators were interested in the effect of…
