What are the general desirability among users to lease rather than own the space they need in their operations

Q: what is One of the advantages of leasing

A: A lease can be defined as a contract where a party, being the owner (lessor) of an asset (leased…

Q: Why is a home a good inflation hedge

A: Inflation is a stage or condition in which the price is rising and the value of money is decreasing.…

Q: The fact that workers are unable to meet a property determined direct labor standard is sutfidient…

A: Standards are the expected performance which is required to be achieved or could be achieved with…

Q: Who will have control over the operation of the property and decisions involving capital…

A: Real estate properties refers to a tangible property. Real estate property is generally used to…

Q: Why might the actual holding period for a property be different from the holding period that was…

A: The consideration while anticipating holding period: 1.The rental from the property. 2.The rate at…

Q: Metlock Inc. is a book distributor that had been operating in its original facility since 1995. The…

A: Note payable are the promissory notes. In accordance with this arrangement, a borrower receives…

Q: What are the benefits and costs of renovation?

A: Introduction: Renovation is the improvement process in which upgrades and repair of the property are…

Q: Explain why an organization should buy or lease when purchasing equipment.

A: Leasing involves the two parties, a lessee and lessor ,Whereas purchasing involves a buyer and…

Q: What is the significance of the passive activity loss limitation (PAL) rules for real estate…

A: Significance of the passive activity loss limitation (PAL) rule for real estate investors: The…

Q: How can be Preservation and Maintenance of the Property can be done?

A: Preservation and Maintenance of Property can be done as follows: The borrower of the property…

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

Q: How can an Investment be considered a liability since the company is forced to put resources into…

A: An investment can be considered a liability for a company when the company is forced to put…

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Are litigation costs to defend an intangible asset capitalized or expensed? Explain your answer.

A: Litigation Costs should be capitalised and amortised over the remaining useful life of the related…

Q: What are the features of Rent discount for industrial/warehouse properties that might be added for…

A: The question is based on the concept of rent discounting for real estate.

Q: Which of the following is NOT a way to dispose of an asset? a.Sell it. b.Exchange it for another…

A: solution concept Disposing of the asset                 Discarding a asset means retiring the asset…

Q: TRUE OR FALSE? Once decided by management as an asset held for sale, management can never change…

A: An entity should classify an asset held for sale category when the carrying amount of an asset will…

Q: What type of intangible asset is the goodwill account? What does it mean to the purchaser if the…

A: Goodwill refers to the intangible asset that arises from the purchase of another company or…

Q: How can the marginal rate of return be used to decide when to sell a property?

A: Answer: The following are the factors that cause a change in marginal rate of return over time, An…

Q: On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on…

A: The bonds can be issued at a premium or discount. When the bonds are issued at a premium, they are…

Q: How does the Leasing reduce the upfront cash needed to use an asset?

A:

Q: Reasons a company may choose to lease an asset include all of the following, except for short-term…

A: Lease meaning:- A lease is a kind of legal agreement that requires the user to pay the owner in…

Q: Discuss the risks associated with short selling an asset. Use examples and empirical evidence in…

A: A short-selling of an asset or stock means that the investor sells the borrowed securities…

Q: hich of the current asset holding policies is theoretically the least profitable? Group of answer…

A: A company's working capital policy refers to the amount of money invested in current assets in order…

Q: Describe the process of securitization as applied to homemortgages.

A: Securitization is a method in which funds are recycled in a way that all assets generating steady…

Q: What factors should be considered when deciding whether to renovate a property?

A: Availability of budget as one needs to consider the money factor regarding whether one have…

Q: What are the features of Rent premiums for industrial/warehouse properties that might be added for…

A: Introduction: The given question is based on the notion of rent discounting in real estate finance.…

Q: A land development company that wants to protect itself against bodily injury liability claims…

A: An insurance is referred to as the contract, which used to represent through the policy, where an…

Q: How can a person apply the principles of valuation to their personal life?

A: The principles of valuation can be applied in a systematic and tangible manner in the personal life…

Q: A company could change their intention of use for an intangible asset resulting in the asset no…

A: Yes, a company can change its intention of use for an intangible assets, which may impact how it is…

Q: Define and discuss survivorship bias and selection bias, and how they affect reported returns of…

A: Survivorship bias is a type of bias in which a person has a tendency to view the performance of…

Q: Why was land registration a critical issue in maintaining property rights?

A: The primary goal of property rights, as well as their primary accomplishment, is to eliminate…

Q: If what is promised is only the use of a specific thing which does not include its ownership, the…

A: The contributing partner is the partner of the partnership business which has contributed something…

Q: Why should the person who keeps the records of an asset not be the person responsible for its…

A:

Q: If land is purchased as a building site, the cost of removing existing structures is not charged to…

A: Land, Landfills and building are the same classes of real estate properties but the accounting…

Q: Land is not an asset we depreciate. Explain what it is not treated as an asset we depreciate?

A:

Q: Land is not considered as a depreciable property.Why

A: Fixed assets:   These are the types of assets owned by the business that is expected to provide an…

Q: Refer to the definition of assets on page 204. Discuss howa leased building might qualify as an…

A:

Q: The cost of a title search and title insurance are typically part of the closing costs on a housing…

A: close costing: it is the expense beyond the cost of property when you close on house.

Q: Explain the concept of asset financing in Islam. What is the concept of Musharakah? How is it…

A: (Answers of first 3 parts) 1.  Islamic finance refers to the banking and financial activities which…

Q: How can I own commercial property without having to manage the building and tenants?

A: By investing in real estate through different ways mentioned here under to can own commercial…

Q: Which of these is not typically a responsibility of a property manager? Maintenance programs O…

A: Property manager is the person who sees the day to day working of the real estate.The responsibility…