None According to the income approach, this transaction would be recorded as aA. $60,000 increase in domestic value added by the brokerage service.B. $60,000 increase in income received by the real estate broker.C. $60,000 increase in residential investment.D. $1,060,000 increase in residential investment.E. $1,060,000 increase in domestic value added, for the value of the house.

A. $60,000 increase in domestic value added by the brokerage serviceExplanation: Domestic value…

Answered: According to the income approach, this…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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you have asked to estimate the value of the subject property that has gross rental income of $130,000 and a NOI of $58,000. A summary of transaction data on three comparable market is in the table below. Sp : 650,000 750,000 450,000 Gross rental income: 100 000 150,000 75,000 NOI. : 50 000 56,000 36,000 Based on two methods that are frequently used in the Income approach your task is to estimate the value of subject property. Which method give the highest value? (Ch 10) the subject property has a rentable area of 1,500 Sqm, construction costs amount to $30/sqm. Estimated economic life of building is 50 years. Economic depreciation in terms on negative changes in the neighborhood is estimated to $1000 and based on the sales comparison approach the estimated value of the land amounts to 10,000. Current age of the building is 10 years. Based on the cost Approach your task is to estimate the value of the subject proper
The following historical information is from Assisi Community Markets. Calculate the working capital and current ratio for each year. What observations do you make, and what actions might the owner consider taking?
Find the following using the given data: total expense Total assests Total liabilities Total Revenue Net income Ending capital Net increase
Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9. Based upon these statements, answer the following questions. 1. What are Hershey's sales (in millions)? 2. What is Hershey's cost of sales (in millions)? 3. What is Hershey's net income (in millions)? 4. What is Hershey's percent of the cost of the sales to sales? Round to one decimal place. 5. The percent that a company adds to its cost of sales to determine the selling price is called a markup. What is Hershey's markup percent? Round to one decimal place. 6. What is the percentage of net income to sales for Hershey? Round to one decimal place. 7. Hershey had total assets of $5,554 (millions) at the beginning of the year. Compute the return on assets for Hershey for the year shown in Exhibits 6–9. Round to one decimal place.
If a company purchases equipment costing $6,100 on credit, the effect on the accounting equation would be: Multiple Choice Assets increase $6,100 and liabilities increase $6,100. Equity decreases $6,100 and liabilities increase $6,100. One asset increases $6,100 and another asset decreases $6,100. Assets increase $6,100 and liabilities decrease $6,100. Equity increases $6,100 and liabilities decrease $6,100.
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Please solve the question ASAP.
Consider the table given below to answer the following question. Year 1 2 3 4 7 9. 10 Asset value 13.00 14.56 16.31 18.26 19.91 21.70 23.65 25.07 26.58 28.17 Earnings 1.56 1.75 1.96 2.19 2.39 2.50 2.60 2.63 2.13 2.25 Net investment 1.56 1.75 1.96 1.64 1.79 1.95 1.42 1.50 1.59 1.69 Free cash flow (FCF) 0.55 0.60 0.54 1.18 1.13 0.53 0.56 Return on equity (ROE) 0.12 0.12 0.12 0.12 0.12 0.115 0.11 0.105 0.08 0.08 Asset growth rate Earnings growth rate 0.12 0.12 0.12 0.09 0.09 0.09 0.06 0.06 0.06 0.06 0.12 0.12 0.12 0.09 0.04 0.04 0.01 -0.19 0.06 Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6, 11% in year 7, 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? Assume 11% cost of capital. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) X Answer is complete but not entirely correct. Present value 2$ 19.72 X million 6.
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Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next questions. Note: When applying the Dercentage sales method, you should assume that the 2023 percentage values with respect to sales of the () costs except depreciation () depreciation, (4) cash and equivalents, (iv) accounts receivable, (v) inventories (vi) property, plant and equipment, and (vi) accounts payable will remain equal to those percentages of 2022. Sales in 2023 are expected to grow at a rate of 10%, with respect o the values of 2022. Assume also that the total values in 2023 of interest expense and debt will not change from its 2022 values, income tax will remain at 3% of the Pretax Income, and that Company X initially plans to payout 35% of its net income to its shareholders Insert TABLE 1 here What is the forecasted value of sales for 20237 Express the numerical terms of your answer completely For example. If your answer…

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