Answer:
It is True that potential investors, in analyzing the profit potential for a distressed property, generally consider a financial framework including the acquisition phase, the holding period phase and the disposition phase
Explanation:
Acquisition is the process of gaining ownership or control of a real estate. It is usually sold by brokers to investors.
In the case of distressed property, there is always a holding period
Holding periods are usually targeted at 2-5 years, during which the asset that has been acquired is renovated.
The end of the holding period transitions to the beginning of the disposition phase.
During the disposition phase, the real estate which could be a distressed building is being disposed or handed over to the owners. At this phase, complete documentation is done and handed to both parties to endorse.
A comprehensive financial framework detailing all the expenditure across the acquisition phase, holding period and the disposition phase must be in place in order to get an accurate calculation of expenditure data to used in analyzing the profit potential of a property.
Answer:
Budgeted cost of goods sold = $3,150,000
Explanation:
Given:
Budgeted beginning finished goods inventory = $390,000
Budgeted production costs = $3,000,000
Budgeted ending finished goods inventory = $240,000
Find:
Budgeted cost of goods sold
Computation:
Budgeted cost of goods sold = budgeted beginning finished goods inventory + budgeted production costs - budgeted ending finished goods inventory
Budgeted cost of goods sold = $390,000 + $3,000,000 - $240,000
Budgeted cost of goods sold = $3,150,000
Answer:
.............................
Explanation:
Answer:
- 8 months for the first interest
- 6 months for the second
Explanation:
The interest is to be paid semi-annually which means that it accrues for 6 months. However, the bond was issued on May 1, 2020 which is 8 months before the first interest payment on January 1, 2021 so the January payment will have to cover for those months as interest starts to build immediately the bond is purchased.
The second payment on July 1, 2021 will cover the period of 6 months between January 1 and July 1, 2021.
