There has been recent momentum in art market investments, despite the recession. The art market is scouring the world for undervalued works by major artists and museums are seeking new material for blockbuster shows.  Amid this, artistic works by Dalí and others are getting longer looks. Interestingly, few artists could reap more from a late-period revival than Dalí. The artist created at least 1,200 paintings between his art-school years in the 1920s and his death in 1989.

Questions:

1. The article mentions that over the past five years, the average price paid at auction for a late-period Dalí has risen from $108,634 to just over $1 million, based on reports by Art Research Technologies, a New York-based consulting firm that tracks auction prices.  Using this information, what percentage increase is this?

2.  As the video mentioned, many corporations invest in these artworks.  Use the information in Question 1 and assume that these average numbers  represent a sale of one Dalí painting from one corporation to another corporation.  What journal entry would the selling corporation make?

3. Use the information in Question 1 and assume that this is an exchange of one corporation selling a Dalí painting to another corporation.  What journal entry would the buying corporation make?

Sources:

Crow, Kelly. (2010). The Lust for Late, The Wall Street Journal, August 13. (Retrievable online at  http://online.wsj.com/article/SB10001424052748704017904575409732613402068.html?mod=WSJ_hp_mostpop_read#project%3DDALI-TL100805%26articleTabs%3Darticle)

WSJ Video with Kelly Crowe (2010). The Lust for Late, August 13. Retrievable online at  http://online.wsj.com/article/SB10001424052748704017904575409732613402068.html?mod=WSJ_hp_mostpop_read#project%3DDALI-TL100805%26articleTabs%3Dvideo)