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 $10,321,500. Unfortunately for the previous owner, he had purchased it in 1998 at a price of $12.397.500. What was his annual rate of return on this sculpture? (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.)
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 $10,321,500. Unfortunately for the previous owner, he had purchased it in 1998 at a price of $12.397.500. What was his annual rate of return on this sculpture? (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.)
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 41P
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Question
![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 $10,321,500. Unfortunately for the
previous owner, he had purchased it in 1998 at a price of $12.397.500. What was his
annual rate of return on this sculpture? (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.)
Answer is complete but not entirely correct.
-4.15 %
Annual rate of return](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5e7f421-4fd8-49d8-b638-131a56945312%2F03a4cf01-ec2b-40bc-842f-0efcc24bb757%2Fwbe5qg_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $10,321,500. Unfortunately for the
previous owner, he had purchased it in 1998 at a price of $12.397.500. What was his
annual rate of return on this sculpture? (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.)
Answer is complete but not entirely correct.
-4.15 %
Annual rate of return
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