Directions: Complete the worksheet for accepting a voluntary conveyance based on the given scenario and answer the questions below. Scenario: Farmer John has ceased all farming operations and decided to voluntarily convey all real estate security to FSA. The market value of the property is $160,000. The holding period is 165 days (5.5 months or 0.45 years). The prior lienholder debt is $37,365. The FSA FO loan is secured by a second lien position with total principal and interest of $53,365. Taxes have not been paid for 4 years and total $8,500. Next year's taxes will be $2,300. Through a State notice, you have been advised that the Farm Land Market Advisory Committee ha determined that the land appreciation in your area is 3 percent annually. You also learn that the property management cost for your State is $1,500 and the administrative cost for an FO loan is $1,107. You have determined that closing costs will be $250 and resale expenses will be $950. The current operating loan rate is 5 percent. No other income or expenses are projected. 1. Should the Agency accept the conveyance? 2. List the reasons supporting your decision.

Directions: Complete the worksheet for accepting a voluntary conveyance based on the given scenario and answer the questions below. Scenario: Farmer John has ceased all farming operations and decided to voluntarily convey all real estate security to FSA. The market value of the property is $160,000. The holding period is 165 days (5.5 months or 0.45 years). The prior lienholder debt is $37,365. The FSA FO loan is secured by a second lien position with total principal and interest of $53,365. Taxes have not been paid for 4 years and total $8,500. Next year's taxes will be $2,300. Through a State notice, you have been advised that the Farm Land Market Advisory Committee ha determined that the land appreciation in your area is 3 percent annually. You also learn that the property management cost for your State is $1,500 and the administrative cost for an FO loan is $1,107. You have determined that closing costs will be $250 and resale expenses will be $950. The current operating loan rate is 5 percent. No other income or expenses are projected. 1. Should the Agency accept the conveyance? 2. List the reasons supporting your decision.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Joe Jay purchased a new colonial home for $260,000, putting down 20%. He decided to use Loyal Bank for his mortgage. They were offering a 6 1/2% for a 25-year mortgage. The principal after the first payment had a balance outstanding of: Multiple Choice $259,652.79 $207,722.24 $206,595.57 $258,244.46
Jay
Please answer step by step wiyh explanation.
The information and answer is given in the images. I just need to know how they calculated imputed interest on housing loan 170. Just need to know the steps. Thanks
Carol has a closed-end lease agreement in which the lessor has estimated that the value of the leased car will be $10,000 at the end of the lease term. If Carol returns the car in good condition and under the mileage limit at the end of the lease, but the car is then worth only $9,000, Carol will A : not get her security deposit back as a penalty. B : have to pay the extra $1,000 in depreciation at that time. C : be able to walk away without any responsibility for the extra loss in value. D : receive a rebate of $1,000 from the lessor.
I don't know how to do this, I really struggle with this one. Badly need some help. Please look at the photo for the instructions, thankyou!
An investor is considering the acquisition of a "distressed property" which is on Northlake Bank's REO list. The property is available for $202,600 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: $ 539 1,078 13,000 878 7,239 1,839 6,039 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 believes that he could rent it (starting in year 2) and realize a net cash flow before debt service of $1,980 per month. However, he would have to make an additional $7,980 in interest payments on his loan during that time, and then sell. What would the…
please give me answer i want to submit it
Complete the journal entries for the following investing transactions. a. A farmer buys a tract of land for $50,000. b. A farmer leases a tractor that is worth $50,000 and will own the tractor at the end of the lease. c. A farmer builds a shed for $7,000. d. A farmer buys five cows for $6,000. e. A farmer sells a parcel of land to a local municipality for $36,000. The original cost of the land was $36,000.