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2 years ago

What advantage might a land contract have to a seller compared to a purchase money mortgage?

1 answer:

6 0

There are benefits and drawbacks to adopting land contracts since they are an alternate method of financing. Since a conventional lender is not engaged, both the buyer and the seller should carefully analyze the conditions.

The benefits of a land contract are as follows:

Advantage #1: A typical lender is not involved.

Advantage #2: The seller has flexibility in setting the terms and conditions of the transaction.

Advantage #3: the buyer has the option to complete the transaction right away and present the seller with counter terms.

Advantage #4: Since there are no lending restrictions, a land contract has lower closing fees.

Advantage #5: Both the buyer and seller receive tax and income benefits.

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You might be interested in

Assuming that data mining techniques are to be used in the following cases, identify whether the task required is supervised or

Greeley [361]

Answer:

Supervised and Unsupervised Learning:

a. Unsupervised learning

b. Supervised learning

3. Supervised learning

4. Unsupervised learning

Explanation:

The key difference between supervised machine learning and unsupervised machine learning is that with supervised machine learning there is a training dataset (labeled data) on which the algorithm is trained to predict patterns. With unsupervised machine learning on the other hand, there is no training data. So, the algorithm discovers patterns on itself without reference to another labeled data or training dataset.

6 0

4 years ago

Glenn sells a piece of equipment used in his business for $31,500 during 2019. The equipment was purchased on July 1, 2017, at a

Schach [20]

Answer:

A gain of $16,100

Explanation:

When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal.

The carrying amount of an asset is the difference between the cost of the asset and the accumulated depreciation of the asset.

Carrying amount

= $22,000 - $6,600

= $15,400

Gain/(loss) on sale of asset

= $31,500 - $15,400

= $16,100

6 0

4 years ago

How do countries benefit by being members of economic communities? A. The balance of payments become equalized B. Tariffs on im

Alex_Xolod [135]

Answer: Trade policies are coordinated and there are less restrictions on imports and exports.

Explanation:

An economic community is an agreement entered into by countries to enable higher cooperation in areas of politics and economic activities. In an economic community, the charges placed on import and export among member nations is minimal. An example of an economic community is the ECOWAS.

3 0

3 years ago

Ospry Company has working capital in the amount of $ 1,240,000 . For the following transactions, determine whether working capit

chubhunter [2.5K]

Purchasing inventory increases your accounts payable and the inventory balance. Trade payables are part of current liabilities and inventories are part of current assets. Both the balance of current assets and current liabilities will increase and the net effect on working capital will be zero. Therefore, working capital remains the same.

Cash in bank accounts and cash, including unpaid customer checks. Securities such as US Treasury bills and money market funds. A short-term investment that the company plans to sell within one year. Accounts receivable are less a provision for accounts receivable that are unlikely to be paid.

In short, working capital is the money available to meet current short-term obligations. To ensure your working capital is working effectively, you need to calculate your current situation, anticipate your future needs, and consider how to ensure you always have enough cash.

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6 0

2 years ago

Payroll Accounts and Year-End Entries The following accounts, with the balances indicated, appear in the ledger of Codigo Co. on

Scilla [17]

Answer:

Check the explanation

Explanation:

Part 1

Date Accounts Debit Credit

Dec 1, 2017 Medical Insurance Payable $2,520

Cash $2,520

Dec 1, 2017 Social Security Tax Payable $2,913

Medicare Tax Payable $728

Employees Federal Income Tax Payable $4,490

Cash $8,131

Dec 2, 2017 Bond Deductions Payable $2,300

Cash $2,300

Dec 12, 2017 Sales Salaries Expense $14,500

Officers Salaries Expense $7,100

Office Salaries Expense $2,600

Social Security Tax Payable $1,452

Medicare Tax Payable $363

Employees Federal Income Tax Payable $4,308

Employees State Income Tax Payable $1,089

Medical Insurance Payable $420

Bond Deductions Payable $1,150

Salaries Payable $15,418

Dec 12, 2017 Salaries Payable $15,418

Cash $15,418

Dec 12, 2017 Payroll tax Expenses $2,220

Social Security Tax Payable $1,452

Medicare Tax Payable $363

State Unemployment Tax Payable $315

Federal Unemployment Tax Payable $90

Dec 15, 2017 Social Security Tax Payable $2,904

Medicare Tax Payable $726

Employees Federal Income Tax Payable $4,308

Cash $7,938

Dec 26, 2017 Sales Salaries Expense $14,250

Officers Salaries Expense $7,250

Office Salaries Expense $2,750

Social Security Tax Payable $1,455

Medicare Tax Payable $364

Employees Federal Income Tax Payable $4,317

Employees State Income Tax Payable $1,091

Bond Deductions Payable $1,150

Salaries Payable $15,873

Dec 26, 2017 Salaries Payable $15,873

Cash $15,873

Dec 26, 2017 Payroll tax Expenses $2,009

Social Security Tax Payable $1,455

Medicare Tax Payable $364

State Unemployment Tax Payable $150

Federal Unemployment Tax Payable $40

Dec 30, 2017 Employees State Income Tax Payable $6,258

Cash $6,258

Dec 30, 2017 Bond Deductions Payable $2,300

Cash $2,300

Dec 31, 2017 Pension Expense $65,500

Cash $55,400

Unfunded Pension Liability $10,100

3 0

3 years ago