Work in excel, In 2020, a Detective Comics No. 27, featuring the first appearance of Batman, was sold at auction for $1.5 million. The comic book was originally sold in 1939 for $.10. What was the annual increase in the value of this comic book?
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Work in excel, In 2020, a Detective Comics No. 27, featuring the first appearance of Batman, was sold at auction for $1.5 million. The comic book was originally sold in 1939 for $.10. What was the annual increase in the value of this comic book?
The value of an investment or an asset or a financial security usually increases with passage of time.
This happens due to the impact of compounding.
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- Assume that in 2020 the first edition of a comic book was sold at auction for $797,800. The comic book was originally sold in 1939 for $.10. What was the annual increase in the value of the comic book?Assume that in 2018, the first edition of a comic book was sold at auction for $632,600. The comic book was originally sold in 1935 for $.10. For this to have been true, what was the annual increase in the value of the comic book? Annual increase: ____%In 2019, BigDream Inc. just started its operation and decided to produce its inventory in-house. It purchased an assembling machine with a purchase price of $250,000. Also, BigDream paid $5,000 for shipping costs and $5,000 for transportation insurance. The company estimates the machine with 5-year service life and considers a resale value of $5,000 after 5 years of usage. Over the next 5 years, it was also estimated that the machine would produce 100,000 units during its life. The actual units produced during its first-year operation was 10,000. Prepare the journal entry for the purchase and depreciation expense for 2019 under each of the following assumptions and prepare the year-end adjusting entry (a) Straight-line. (b) Double-declining-balance. (c) Units-of-production.
- An art collector purchased a painting 30yrs ago for $587,000. Today this painting is estimated to be $11.74 million. Based on this estimate, what is the annual compound rate of appreciation for the painting since the art collector's initial purchase?DEF Corporation built a factory that produces widgets at a cost of $100 million. The factory began its operation on January 1, 2022. The factory has a licensed to be in operations for 30 years and after that, the factory must be demolished and disposed of. At January 1, 2022, the cost of demolishing the factory was estimated to be $20 million. An appropriate discount rate is 5%, when the present value of $1 is $0.2314 in 30 years’ time. Requirement a.) What is the value of the provision in the statement of financial position at December 31, 2022 b.) What is the carrying amount of the factory at December 31, 2022?On September 30, 2020, Zee Company paid P240,000 for equipment that will be used for the next four years. What is the equipment's carrying value on December 31, 2023? O P240,000 O P225,000 O P165,000 O P105,000
- Irwin, Incorporated constructed a machine at a total cost of $35 million. Construction was completed at the end of 2020 and the machine was placed in service at the beginning of 2021. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At the beginning of 2024, Irwin decided to change to the straight-line method. Ignoring income taxes, prepare the journal entry relating to the machine for 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).Rambo Manufacturing Co. purchased $2,885,000 in new production equipment during 2022. All of the equipment was purchased in June. What is the maximum depreciation deduction Rambo can take this year (assuming Rambo elected out of taking bonus depreciation)? TABLE 1 MACRS Half-Year ConventionOn December 31, 2020, Ehrlich Inc. has a machine with a book value of $260,000. The original cost of the machine is $980,000.Depreciation is computed at $72,000 per year on a straight-line basis. On June 1, 2021, Ehrlich sold the machine for $300,000. Prepare the journal entries to update the book value of the machine and record the sale.
- A company buys an oil rig for P1,200,000 on January 1, 2020. The life of the rig is 12 years and the expected cost to dismantle the rig at the end of 12 years is P300,000 (present value factor of 1, 12% for 12 years is 0.2567). 12% is an appropriate interest rate for this company. What is the total expense should be recorded for 2020 as a result of these events?On January 31, 2020, Manning Company acquired a new machine by paying $40,000 cash and agreeing to pay $20,000 annually for four years, beginning on January 31, 2021. Assuming an interest rate of 10%, Manning should record the acquisition cost of the machine on January 31, 2020, at a.$120,000. b.$109,737. c.$103,397. d.$102,092On October 1, 2022, Abbott Inc. purchased equipment costing $700,000 by paying $150,000 cash and signing a $550,000, 10%, 1-year note for the remainder. The face value of the note plus interest is due when the note matures in one year. The equipment will be used in a variety of R&D activities. It is expected to have a useful life of 5-years and a residual value of $20,000. Abbott uses the DDB method for the equipment. Required: In the journal below, record the equipment purchase on October 1, and record depreciation and accrued interest for 2022. Round all calculations to the nearest whole month and whole dollar.