14) The subject is a Class A office building. Sale 1 is also a Class A building that soldfor $100 per sf. Sale 2 is a Class D office building that sold for $80 per sf. Both Sale 1and Sale 2 sold one year ago and data reveals the market has increased 10% overthe past year. What is the percent construction class adjustment to Sale 2 and whatis the dollar adjustment for construction class?A) +20%; $22 per sfB) +20%; $20 per sfC) +25%; $22 per sfD) +25%; $20 per sf

1. Price Adjustment Due to Market Increase: Both Sale 1 and Sale 2 need to be adjusted for the 10%…

Answered: 14) The subject is a Class A office…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A refinery buys 20 million barrels of crude oil at a market price of $25 per barrel on 17th August 20X1. Having processed the oil, the refinery sells its final products in October 20X1 for an average price of $43 per barrel, when the average market price of crude oil is $30 per barrel. Which of the following statements about current replacement cost accounting is/are correct: (i) Cost of sales is $500 million. (ii) The capital maintenance adjustment is $130 million. (iii) Replacement cost profit of $360 million is made on the sale. Select one: a. (i) only b. (ii) only c. No statement is correct d. (i) and (iii) e. (i) and (ii) ○ f. (iii) only g. (ii) and (iii)
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