EsAssume the following information:Comp. Property #1Comp. Property #2Comp. Property #3Subject PropertyNet OperatingIncome (NOI)$82,000$75,000$94,000$60,000Effective GrossIncome (EGI)$122,000$111,500$140,000$108,000Selling Price$1,250,600$1,143,300$1,433,600What is the estimated value of the subject property using the directcapitalization technique/approach? Assume the three comparable sales are What is the estimated value of the subject property using the directcapitalization technique/approach? Assume the three comparable sales areequally comparable to the subject property.O $1,006.000O $522,000O $618,600O $909,100

Value of property is the present value of net operating income from the property that can be…

Answered: Fomp. Property #1 -mp. Property #2 mp.…

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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Platteville Corporation has the following account balances at 12/31/20: Amortization expense P 10,000 Trademark 80,000 Research and Development costs 100,000 Patent, net of P30,000 amortization 70,000 What amount should Platteville report for intangible assets on the 12/31/20 statement of financial position? 100,000 150,000 250,000 260,000
7
X Transactions for CCA Class 8 assets. Date Item Activity Amount March 11, 2002 Machine 1 Purchase $50,000 April 24, 2002 Machine 2 Purchase $150,000 November 3, 2005 Machine 3 Purchase $230,000 November 22, 2005 Machine 1 Sale $10,000 May 20, 2009 Machine 4 Purchase $50,000 August 3, 2014 Machine 5 Purchase $345,000 September 12, 2015 Machine 3 Sale $50,000 Churchill Metal Products opened for business in 2002. Its transactions for CCA Class 8 assets over the years are shown in the accompanying table. What CCA amount did Churchill Metal Products claim for the 20 percent UCC account in 2016? Click on the icon to view the transactions for CCA Class 8 assets. Churchill Metal Products claimed a CCA of $ in 2016. (Do not round until the final answer. Then round to the nearest dollar as needed.)
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Exercise 7-3A Allocate costs in a basket purchase (LO7-1) Red Rock Bakery purchases land, building, and equipment for a single purchase price of $500,000. However, the estimated fair values of the land, building, and equipment are $210,000, $330,000, and $60,000, respectively, for a total estimated fair value of $600,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment. X Answer is complete but not entirely correct. Estimated Fair Allocation Amount of Basket Recorded Value Percentage Purchase Amount Land $ 210,000 25 X % $ 500,000 $ 125,000 Building 330,000 65 X % 500,000 325,000 X Equipment 60,000 15 % 500,000 75,000 Total $ 600,000 $ 525,000
A-2
The following information has been provided for Relink Corporation for 20X2-20X5: 20X2 20X3 20X4 20X5 Capital asset additions $ 1,001,007 $0 $2,015,000 $0 Depreciation expense 115,000 115,000 315,000 315,000 Capital cost allowance 215, 000 175,000 543, 000 437, 400 Development costs incurred 105,000 115,000 135, 000 65,000 Development costs amortized 0 33,000 53,000 65,000 Tax rate 40 % 37% 37 % 35 % Required: 1. What is the tax basis of the capital assets in each year? 2. What is the tax basis of the development costs in each year? 3. What is the accounting basis of the capital assets in each year? 4. What is the accounting basis of the development costs in each year? 5. What is the deferred tax balance in each year? (Negative amounts and deductible amounts should be indicated by a minus sign.) 6. Is the deferred tax balance in each year an asset or a liability? multiple choice Asset Liability
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Check my w Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405,405 for real estate with land, land improvements, and a building. Land is appraised at $243,000, land improvements are appraised at $108.000; and the building is appraised at $189,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Comptete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. (Round your "Apportioned Cost" answens to 2 decimal places.) Appraised Value Percent of Total Appraised Value Total Cost of Acquisition - Apportioned Cost 243.000 108 000 Land Land improvements
You want to value a property with an effective gross income of $53,000 and a Net Operating Income of $27,500. The table below summarizes the valuation and income of comparable properties. Comp 1 Comp 2 Comp 3 Price $300,000 $350,000 $375,000 Gross Income $50,000 $55,000 $60,000 % Operating 50% 55% $54% Expense Net Operating Income $25,000 $30,000 $32,500 What value would a Gross Income Multiple approach yield (rounded to the nearest $100)? $329,200 $325,000 $330,000 $316,900
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Fomp. Property #1 -mp. Property #2 mp. Property #3 ect Property Net Operating Income (NOI) $82,000 $75,000 $94,000 $60,000 Effective Gross Income (EGI) $122,000 $111,500 $140,000 $108,000 Selling Price $1,250,600 $1,143,300 $1,433,600