At the time Mark bought the painting, he could have placed the money he paid for it (including the handling fee) in a 12 month term deposit that offered an interest rate of 2.7% compounded monthly. (c) Determine whether the term deposit would have been a better investment for Mark.
At the time Mark bought the painting, he could have placed the money he paid for it (including the handling fee) in a 12 month term deposit that offered an interest rate of 2.7% compounded monthly. (c) Determine whether the term deposit would have been a better investment for Mark.
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 39P: On July 24 of the current year, Sam Smith was involved in an accident with his business use...
Related questions
Question
please do question 10. a and b
and question 19 c
Transcribed Image Text:Question 10
A single person living away from home and looking for a job qualifies for a government allowance
of $485.50 per fortnight, provided their fortnightly income is no more than $150.
In any fortnight that such a person earns more than $150, the allowance will reduce by 50 cents
for each dollar of income they have between $150 and $250. If their income is over $250, the
payment will further reduce by 60 cents for each dollar of income over $250.
Ann qualifies for the allowance. Each week she works two, 3-hour shifts and one, 5-hour shift at
a hotel that pays $21.50 per hour.
(a)
Calculate her fortnightly earnings.
(b)
Determine her fortnightly government allowance.
Transcribed Image Text:Question 19
Mark bought a painting as an investment at an auction for $15 500. The auction house charged
Mark a handling fee of 0.75% of the sale price.
(a) Determine the handling fee paid by Mark.
One year later, Mark sold the painting through a gallery for $20 900. The gallery charged Mark a
commission of 24% of the sale price.
(b) Determine the net profit made by Mark, after he had paid the handling fee and sales
commission.
At the time Mark bought the painting, he could have placed the money he paid for it (including the
handling fee) in a 12 month term deposit that offered an interest rate of 2.7% compounded
monthly.
(c) Determine whether the term deposit would have been a better investment for Mark.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT