Answer:
=$1,353, 524
Explanation:
NOI stands for net operating income
In this case, NOI will be calculated as follows
Rent per suit = $14,800
Number of suits 9
The monthly rent will be
=$14,800 x 9
=$133,200
Annual rent will be monthly rent x 12
= $133,200 x 12
=$1,598,400
Considering a 14 % vacancy rate, expected annual rent collection
=$1, 598,400 minus 14% of $1, 598,400 or 86% of $1, 598,400
= 86/100 x $1, 598,400
=$1,374,624
Adjusting for annual expenses
= $1,374,624 - $21,100
=$1,353, 524
Answer:
d. Shareholders equity increases $ 16,000
Explanation:
Two months rent needs to be adjusted. The total payment made was for $ 48,000 for a six month period. The monthly rent is $ 48,000/6 = $ 8,000
The adjustment amount is thus $ 8,000 * 2 months = $ 16,000
The adjusting entry is:
Rent expense Debit $ 16,000
Prepaid rent Credit $ 16,000
So this results in decrease in prepayment and an increase in rent expense. \Due to an increase in expenses, the net income decreases by the same amount.
The only option of increase in shareholders equity, is not valid as a reduction in net income shall result in a decrease in shareholders equity.
Answer:
Brittany sold her stock (the basis of $60,000) to her brother, Ridge, for $35,000, the fair market value. Her brother subsequently sells the stock to the third party for $34,000.
Ridge’s recognized gain or (loss) is ($ 1,000).
Explanation:
The formula for calculating recognized Gain/[loss] is expressed below:
Recognized Gain/[loss] = Sales Price - Fair Market Value at the time of purchase from Brittany
Recognized Gain/[loss] = $ 34,000 - $ 35,000 = [$ 1,000]
Based on the calculation above, Ridge’s recognized gain or (loss) is ($ 1,000).
Answer:
B
Explanation:
ROI = Operating income / Operating assets
ROI for proejct A=$90,000/$800,000=11.25%
ROI for Project B=$20,000/$100,000=20% ROI for Project C=$25,000/$300,000=8.33% ROI for Project D=$60,000/$400,000=15%
If ROI is 16%, project B should be chosen because the ROI is greater than 16%
I hope my answer helps you
Answer:
B
Explanation:
The cyclically adjusted budget balance is what the budget balance of an economy would be if the GDP was at its potential. It is also known as the known as the full employment budget balance
