HB 358 Individual assignment #2

nces Problem 7-4 An Investor is considering the acquisition of a "distressed property" which is on Northlake Bank's REO list. The property is available for $204,000 and the Investor estimates that he can borrow $160,000 at 4.5 percent interest and that the property will require the following total expenditures during the next year: Inspection Title search Renovation Landscaping Loan interest Insurance Property taxes Selling expenses Required: $ 560 1,120 13,000 920 7,260 1,860 6,060 8,000 a. The Investor is wondering what such a property must sell for after one year in order to earn a 20 percent return (IRR) on equity. b. The lender is now concerned that if the property does not sell, Investor may have to carry the property for one additional year. He belleves that he could rent it (starting in year 2) and realize a net cash flow before debt service of $2,400 per month. However, he would have to make an additional $8,400 in Interest payments on his loan during that time, and then sell.…

Question Content AreaDuring 2023, Jamal and Judy, a married couple, decided to sell their residence, which had a basis of $300,000. They had owned and occupied the residence for 20 years. To make it more attractive to prospective buyers, they had the outside painted in April at a cost of $6,000 and paid for the work immediately. They sold the house in May for $880,000. Broker's commissions and other selling expenses amounted to $53, 000. Since they both are age 68, the couple decides to move into a rented apartment. What is the recognized gain? a. $17,000 b. $527,000 c. $0 d. $27,000

Problem 25-1 (IFRS)... Compute the cost of the building.

Problem 25-4 (IAA) Molave Company had the following outstanding loans during 2020 and 2021. Specific construction loan General loan 3,000,000 25,000,000 10% 12% The entity began the self-construction of a new building on January 1, 209 and the building was completed on June 30, 2021. The following expenditures were made: 1, 2020 1, 2020 December 1, 2020 1, 2021 4,000,000 5,000,000 3,000,000 6,000,000 January April March Required: 1. Compute the cost of the new building on December 31, 2020 and June 30, 2021. 2. Compute the interest.expense for 2020 and 2021.

Problem 25-6 (AICPA Adapted) Chum Company started construction of a new office building on January 1, 2020 and moved into the finished building. on July 1, 2021. Of the P25,000,000 total cost of the building, P20,000,000 was incurred in 2020. evenly throughout the year. The entity's incremental borrowing rate was 12% throughout 2020, and the total amount of interest incurred.was P1,020,000. S, What amount should be reported as capitalized interest on December 31, 2020? а. 1,020,000 b. 1,200,000 с. 1,500,000 d. 2,400,000 CS Scanned with CamScanner

Testbank Multiple Choice Question 79 On March 1, 2020, Sunland Company purchased land for an office site by paying $2770000 cash. Sunland began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2020 $1890000 April 1, 2020 May 1, 2020 2540000 4520000 June 1, 2020 4820000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3540000 was borrowed on March 1, 2020 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2020 was a $1470000, 12%, 6-year note payable dated January 1, 2020. The actual interest cost incurred during 2020 was $441900. $412500. O $247500. O $495000.

Exercise 6-13 Hincapie Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $2,000,000 of 11% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 10%.Click here to view factor tablesAs the controller of the company, determine the selling price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Selling price of the bonds?  $

nku.4  give in table format or i will give you down vote

Question 1 Kingbird Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $13,000,000 on January 1, 2025. Kingbird expected to complete the building by December 31, 2025. Kingbird has the following debt obligations outstanding during the construction period. Construction loan—12% interest, payable semiannually, issued December 31, 2024   $5,200,000 Short-term loan—10% interest, payable monthly, and principal payable at maturity on May 30, 2026   3,900,000 Long-term loan—11% interest, payable on January 1 of each year; principal payable on January 1, 2029   2,600,000 (a) Assume that Kingbird completed the office and warehouse building on December 31, 2025, as planned, at a total cost of $13,520,000, and the weighted-average amount of accumulated expenditures was $9,360,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes…

21 Beck Construction Company began work on a new building project on January 1, 2023. The project is to be completed by December 31, 2025, for a fixed price of $131 million. The following are the actual costs incurred and estimates of remaining costs to complete the project that were made by Beck's accounting staff: Years Actual costs incurred in each year Estimated remaining costs to complete the project (measured atDecember 31 of each year) 2023 $ 36 million $ 72 million 2024 $ 57 million $ 57 million 2025 $ 41 million $ 0 million Required: What amount of gross profit (or loss) would Beck record on this project in each year, assuming that Beck recognizes revenue for this project upon completion of the project?

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What is the cost of the new building?   A. 9,500,000   B. 7,250,000   C: 7,100,000   D. 7,350,000

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Problem 12-15 (Algorithmic) Strassel Investors buys real estate, develops it, and resells it for a profit. A new property is available, and Bud Strassel, the president and owner of Strassel Investors, believes if he purchases and develops this property it can then be sold for $165000. The current property owner has asked for bids and stated that the property will be sold for the highest bid in excess of $100000. Two competitors will be submitting bids for the property. Strassel does not know what the competitors will bid, but he assumes for planning purposes that the amount bid by each competitor will be uniformly distributed between $100000 and $150000. a. Develop a worksheet that can be used to simulate the bids made by the two competitors. Strassel is considering a bid of $130000 for the property. Using a simulation of 1000 trials, what is the estimate of the probability Strassel will be able to obtain the property using a bid of $130000? Round your answer to 1 decimal place. Enter…

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Problem 4 On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated revenue over time. to cost P31,200,000. The company recognizes construction Data on this project for 2022-2024 follow: Contract Costs Est'd Costs Billings 10,500,000 12,500,000 to Complete 20,540,000 incurred 2022 5,460,000 9,984,000 15,756,000 2023 13,156,000 2024 14,440,000 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 2024? 1,164,000 1,466,400 1,724,000 1,824,000 A. c. в. D. Problem 5 MOC Construction Company started work on three job sites during the Any costs incurred are expected to be recoverable. current Data relating to year. the three jobs are given below: Site Contract Cost Estimated Costs Billings on Collections Price Incurred to Complete Contract on Billings 5,000,000 7,000,000 2,500,000 3,750,000 1,000,000…

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A ezto.mheducation.com mework Chapter 10 Saved Help Sa Thomton Industries began construction of a warehouse on July 1, 2021, The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $3,000, 000, 10% note $7,000, 000, 6% bonds Construction expenditures incurred were as follows: July 1, 2021 September 3e, 2021 November 30, 2021 January 30, 2022 $ 460, 000 660, 000 660, 000 600, 000 Hint The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2021 and 2022. terences Complete this question by entering your answers in the tabs below. 2021 2022 Calculate the amount of interest capitalized for 2021. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).) Date Expenditure Weight Average July 1, 2021 %24…

Question 6 options: Investigation and a reasonable amount of work had brought the following project to the attention of Arthur Morgan, CEO of Valentine Ventures.   The following information is presented to you:               CCA rate Building:                              4%             CCA rate Equipment:                        30%             Cost of Capital                                    12%             Corporate Tax Rate                             40%   An immediate cash outlay of $800,000 will be required to purchase vacant land.   The vacant land will be required to house the specialized building that will be constructed over the next 2 years.  The building will require an immediate down payment of $700,000 now and $1,600,000 upon completion of the building at the end of the second year. New equipment also will be placed in the building at the end of the 2nd year.  The equipment will require annual year end purchase payments of $400,000 in year one and two.  The equipment…

answer part b in step by step solutions please, thanks