Thousands of developers, lenders, and investors were victims of deflation in commercial real estate beginning in the 1980s and in 2007-2009.
- Private property in the form of land and buildings is referred to as real estate. Real estate comprises all resources on the land, such as water and minerals, and can be used for residential, commercial, or industrial purposes.
- Homes, workplaces, retail establishments, healthcare facilities, farms, and other structures are all instances of real estate. Real estate includes both the undeveloped area outside of our city and the road that takes us there. Due to the fact that the asset is tangible by nature, many individuals like working with and investing in it.
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When one commercial bank borrows from another commercial bank, it pays the discount rate.
The one place where a bank can get reserves is by borrowing from a commercial bank. As whenever a person or a business firm or an organization borrows, they should pay interest and a bank that borrows from a commercial firm must pay interest to them too. The interest that the commercial bank charges to banks that borrow from them is called the discount rate.
The term discount rate is used when looking at a certain amount of money to be received in the future years and calculating the present value now. The word “discount” means the amount to be deducted. A discount rate is a typical rate that is deducted from a future quantity of money to provide its present value to money seekers.
The cash flows of investments or business ventures when at the time of discount, it is important to note whether the discount rates used can be varied depending on particular different elements. So, discount rates are paid to compensate the borrower bank to the lender bank during transactions.
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Answer: $1,355.41
Explanation:
Business expense deductible:
= Adjusted Cost of gasoline + Depreciation
As Ryan can only provide documentation for 1,300 miles, this is what the deductible will be based on:
= (Cost of gasoline * Documented miles for business / Estimated miles for business) + (Depreciation * Documented miles for business / Total miles travelled)
= (1,920 * 1,300 / 2,260) + (3,900 * 1,300 / 20,200)
= $1,355.41