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Rom4ik [11]
3 years ago
12

To find the value of a property using the income approach to value, if the net operating income and the capitalization rate were

known, the appraiser would
a. multiply the net operating income by the capitalization rate.
b. multiply the effective gross income by the capitalization rate.
c. divide the net operating income by the capitalization rate.
d. divide the capitalization rate by the net operating income.
Business
1 answer:
mars1129 [50]3 years ago
7 0

Answer:

c. divide the net operating income by the capitalization rate.

Explanation:

Income approach assumes that the earnings would be at the capitalization rate. Now, the net operating income is a result of operations and the income would be equivalent to the capitalization rate.

Thus, the net value of the property shall be net operating income/ capitalization rate.

This will calculate the total value of operations for which the business is done.

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sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sal
aleksandr82 [10.1K]

Answer:

a.Sales tax to be recorded at the time of sales.

b.36000

c.38880

d.Sales tax payable

Explanation:

a.Because sales tax is subjected to sales so it is liability of seller to charge sales tax to customer.

b. Sales = $36000

c.Account receivable = [36000+(36000*8%)]=36000+2880=38880

       Entry: Dr  Account receivable  38880

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d. Sales tax payable, it is liability for a seller to refund to government treasury.

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3 years ago
The internal rate of return method is used to analyze a $831,500 capital investment proposal with annual net cash flows of $250,
Umnica [9.8K]

Answer:

annuity factor for 20% and 6 periods = 3.326

Explanation:

the IRR represents the discount rate at which a project's NPV = 0

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