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2 years ago

The increase a property's value beyond what the investor originally invested as a down payment is called _______.

1 answer:

5 0

The increase a property's value beyond what the investor originally invested as a down payment is called Equity accrues.

<h3>What is mean by Equity build up?</h3>

Equity accumulation is the rise in the property's value as a result of the owner's regular main and interest-only mortgage payments.

By dividing the mortgage principal paid in year one by the initial cash put in the property in year one, equity build up rate is determined.
This needs to be calculated since, despite being an essential component of a mortgage payment, principle is not regarded as a cost.

The equity buildup for a property during the first year of ownership is used to calculate the real estate investor's equity buildup rate.
The total return on a property in the first year is calculated by combining the equity buildup rate and the cash on cash return.

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Answer:

to manage financial records

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Explanation:

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3 years ago

Political forces that affect transportation businesses

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It is important to note that politics and the economy have effects on the transportation industry, as the industry is ever changing with new policies, regulations, or capacity issues.

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Hence, the answer was given and explained above.

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1 year ago

What factor has the most impact on a person's credit score?

mario62 [17]

Answer:

The biggest factor impacting your credit is your payment history, which makes up 35% of your FICO® Score☉ . A close second is the amount of credit you're using, which accounts for 30% of your payment history.

Explanation:

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3 years ago

During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $7 per

Inga [223]

Answer:

$196,000

Explanation:

Given that,

Direct materials, = $7 per unit,

Direct labor, = $5 per unit,

Variable overhead, = $6 per unit

Fixed overhead = $350,000

Total variable cost per unit:

= Direct Material per unit cost + Direct Labor per unit cost + Variable Overhead per unit cost

= $7 + $5 + $6

= $18

Fixed cost overhead rate per unit:

= Fixed overhead ÷ Units produced

= $350,000 ÷ 35,000

= $10

Cost per unit as per Absorption costing:

= Fixed cost overhead rate per unit + Total variable cost per unit

= $10 + $18

= $28

Value of Ending Inventory:

= units in inventory at year-end × Cost per unit

= 7,000 × $28

= $196,000

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3 years ago

Pal Corp.'s 2004 dividend income included only part of the dividend received from its Ima Corp. investment. The balance of the d

VashaNatasha [74]

Answer:

Fair Value method, and only a portion of Ima's 2004 dividends represent earnings after Pal's acquisition.

Explanation:

The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.

On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.

This is because dividend are seen as a reduction in investment account under the equity method. This means that dividends received cannot be taken as income in this method, hence C and D are wrong.

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3 years ago