Given the following information, what adjustment would need to be made to account for the lot size difference between the Subject Property and Comparable Property? Market Conditions Lot Size Effective Age (Years) Living Area (Square Feet) Bath Bedrooms Time Sold Lot Size (Acres) Effective Age (Years) Living Area (Square Feet) Bath Bedrooms Sale Price Adjustments -0.50% (per month) $ 25,000 (per acre) $1,000 (per year) $ 45.00 $ 1,250 (per bath) $ 3,000 (per bedroom) (per square feet) Subject Property Today 0.83 8 2,197 3.5 4 Comparable Property 4 Months Ago 0.80 7 2,383 3.5 4 $ 287,000

Given the following information, what adjustment would need to be made to account for the lot size difference between the Subject Property and Comparable Property? Market Conditions Lot Size Effective Age (Years) Living Area (Square Feet) Bath Bedrooms Time Sold Lot Size (Acres) Effective Age (Years) Living Area (Square Feet) Bath Bedrooms Sale Price Adjustments -0.50% (per month) $ 25,000 (per acre) $1,000 (per year) $ 45.00 $ 1,250 (per bath) $ 3,000 (per bedroom) (per square feet) Subject Property Today 0.83 8 2,197 3.5 4 Comparable Property 4 Months Ago 0.80 7 2,383 3.5 4 $ 287,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Speed-ee Delivery is purchasing a new truck for its fleet. It pays the following costs at the time…

A: Property, plant, and equipment are tangible fixed assets. These are depreciable assets which means…

Q: how can i made this entry in QB? Add the purchase of land and a warehouse building form Prime…

A: Journal: Recording of a business transactions in a chronological order.

Q: How much is the input tax in November from purchases in a month of fixed assets?

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse…

A: Cost basis of asset is an original value of asset used for tax calculation purpose. It can be said…

Q: Rental House: Purchase price $79,000, ( Remaining Loan Balance: $66,102) Depreciation Costs…

A: The term like-kind exchange means a tax-deferred transaction that allows for the disposal of an…

Q: Required: Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern…

A: Amortization of a lease pertains to systematically allocating lease-related expenses over the lease…

Q: I have the answer and question below but I need to know HOW to get the answer. Thank you Find the…

A: The assessed value property is the value which is derived after assessment of the property through…

Q: An investor is considering the acquisition of a "distressed property" which is on Northlake Bank's…

A: a) Sale price required in Year 1 to earn 20% IRR:Initial equity investment: Purchase price:…

Q: Suppose that examining a pro forma reveals that the fifth-year net operating income (NOI) for the…

A: A property's projected value based on its net operating income (NOI) and capitalization rate is…

Q: Need a T graph : Sale of Building Building Asset: 555,047.06 Accumulated Depreciation: 121,507.21…

A: This involves the sale of an asset and the asset in this case is building. As the building is…

Q: Your company is deciding between leasing or selling an older piece of equipment. Information related…

A: Lease is a financial arrangement in which the owner of the asset is ready to give the right of use…

Q: Please complete the answer for this draw also teh diagram like the given example. Determine how…

A: MACARS = modified accelerated cost recovery system Face value= FV = $100000(given) dr= DRr × Dn…

Q: 3. Here is a table followed by two advertisements - one for a home to rent and one for a home to…

A: Decision makingThe company has to make decisions for cases like expansion, discontinuation, and…

Q: Recovery period (years) Elapsed time since purchase (years) talled cost 987,000 5 2 walue is $…

A: In this we have to calculate the accumulated depreciation for 2 years and deduct it from cost of…

Q: Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments…

A: Introduction:- This question is related to accounting and involves the calculation of appropriate…

Q: Sale of house and lot as vacation house costing 1M, sold for 3M with FMV of 5M. Proceeds amounting…

A: CGT stands for the Capital Gains Tax.It is a tax in the Philippines on the proceeds from the sale of…

Q: Estimating vacancy and collection losses at 5% of gross income, reconstruct. Required 1%. Calculate…

A: Property value: Property values indicate the likely price of a property at a certain point in time.…

Q: What is the approximate IRR of an asset that (1) sells for $1,120, (2) exists for only 6 years and…

A: The internal rate of return method is an important capital budgeting method that takes into account…

Q: he effective age of our subject is 10 years with a depreciation of 9%. The comparable has an…

A: Age-adjusted rates mean the rates that should be there in case of the population under study is…

Q: A 3,000 square-foot comparable building was leased for $4.50 per square foot per year above the…

A: A comparable property has been leased for a given amount above the market rate. However, the subject…

Q: A farmer buys a new tractor for $152,000 and assumes that it will have a trade-in value of $87,000…

A: The concept of depreciation in accounting provides a systematic way to allocate the costs of…

Q: have been asked to provide an anticipated cap rate and vacancy rate for a pro forma of a subject…

A: Cap rate is the required rate of return and depends on the value of property and net operating…

Question

Multiple Choice
The price of the subject property must be adjusted upward by $750.
The price of the subject property must be adjusted downward by $750.
The price of the comparable property must be adjusted upward by $750.
The price of the comparable property must be adjusted downward by $750.

Given the following information, what adjustment would need to be made to account for the lot size difference between the Subject Property and
Comparable Property?
Market Conditions
Lot Size
Effective Age (Years)
Living Area (Square Feet)
Bath
Bedrooms
Time Sold
Lot Size (Acres)
Effective Age (Years)
Living Area (Square Feet)
Bath
Bedrooms
Sale Price
Adjustments
-0.50% (per month)
$ 25,000 (per acre)
(per year)
$1,000
$ 45.00 (per square feet)
1,250 (per bath)
$3,000 (per bedroom)
Subject Property
Today
0.83
2,197
3.5
Comparable Property
4 Months Ago
0.80
2,383
3.5
4
$ 287,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define of business objective

VIEW

Step 2: computation of adjustment needed

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

А. Place an "X" in the blank for the following items which you believe should be included in the cost of a piece of equipment? 1. Purchase price 2. Sales tax 3. Electricity to run the equipment 4. Installation cost 5. Insurance while being transported 6. Insurance while in use 7. Freight charges В. Your company signed a contract to construct a new building so you borrowed $600,000 on February 1, 2021 and issued a three-year, 6% note which pays interest annually. You spent $200,000 for construction on April 1, 2021 and an additional $300,000 on November 1. How much interest should be capitalized in 2021? Please show your calculations. С. Your company spent $30,000 for repairs and modifications to significantly increase the life of your equipment. What entry should be made for the $30,000? D. You bought equipment on January 1, 2018, for $62,000. The equipment has an estimated life of 8 years and an estimated salvage value of $6,000. Your company uses the straight- line method of…
Calculate the NOI of a property based upon the information provided below: Building area: Average base rents: .NNN recoveries: Vacancy rate: Operating expenses . . • Percentage rent . Concessions . Annual debt service 165,720 O 315,720 O 375.720 440,220 O 478.500 O None of these 15,000 sqft $27.50 psf $4.00 psf 5.0% $4.30 psf $6,000 per year 3.0% $210,000 per year
purchase property that has an annual net income of 587000 and want to ear 8.25% on investment what do I pay for property
Catherine Steele owns two rental properties originally valued at $275,000 (Property 1t land $70,000, building $55,000) (Property 2 land $90,000, building $60,000) The buildings are Class 1 (4%) properties. Net rental income before CCA in 2020 was $11,000 • The UCC on building 1 at the beginning of 2020 was $50,00o. • The UCC on building 2 at the beginning of 2020 was $40,000 • Property 2 was soid in 2020 for $250,000 (land $200,000, bulding $50,000) Required Calculate Catherine's net rental income for 2020 then subtract the allowable CCA to arrive at her Net Income from rental property Numeric Response
Please correct answer and step by step solutions
Please I need fast please check plagiarism
A-A used piece of rental equipment has 1 1/2 years of useful life remaining. When rented, the equipment brings in $500 per month (paid at the beginning of the month). If the equipment is sold now and money is worth 4.7%, compounded monthly, what must the selling price be to recoup the income that the rental company loses by selling the equipment "early"? B-A $3.6 million state lottery pays $15,000 at the beginning of each month for 20 years. How much money must the state actually have in hand to set up the payments for this prize if money is worth 8.9%, compounded monthly?
Find the deprecation equation and corresponding domain using the given information. (Let V be the value in dollars. Let t be the number of years since the item was purchased.) A violin bow is purchased for $400 and the value of the bow decreases by $8 per year for 5 years. V(t) = Domain: - 8 ≤ t ≤ 400 - 0 ≤ t ≤ 8 - 0 ≤ t ≤ 5 - 0 ≤ t ≤ 400
Provide step by step manual solution, given, and depreciation table for below mentioned problem. Make sure yet that your answer is the same as the given answer before sending your solution. An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Answer. P5,263.87
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
Suppose you have 3 sales you can use for comparable sales. Sale 1 and Sale 2 are puritan in relation to land class. Use the puritan sales to determine the price per acre by land class for the third sale using the land class ratio analysis and land adjustment process. Sale 1 has 475 acres of Class 1V land and sold for $300,000. Sale 2 has 600 acres of Class I land and sold for $550,000. Sale 3 has 350 acres of Class I land and 100 acres of Class IV land and sold for $400,000.
A saltwater disposal system is added to Lease A's gathering system at a cost of $225,000. Assume the following acquisition costs and monthly operating expense fro the motn of May 2018 is $30,000. Case A: The disposal system serves several wells on two different leases. There are 7 wells on lease A and 10 wells on Lease B. Case B: the disposal system serves only the wells on Lease A. Required: Record the acquisition cost and the monthly expenses.