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Ugo [173]
3 years ago
9

You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $44,50

0. Four highly similar and competitive apartment properties within two blocks of the subject prop- erty have sold in the past three months. All four offer essen- tially the same amenities and services as the subject. All were open-market transactions with similar terms of sale. All were financed with 30-year fixed-rate mortgages using 70 percent debt and 30 percent equity. The sale prices and estimated first year net operating incomes were as follows:
Comparable 1: Sales price $500,000; NOI $55,000


Comparable 2: Sales price $420,000; NOI $50,400


Comparable 3: Sales price $475,000; NOI $53,400


Comparable 4: Sales price $600,000; NOI $69,000



What is the indicated value of the subject property using direct capitaliation?
Business
1 answer:
s2008m [1.1K]3 years ago
8 0

Answer: indicated value of the subject property using direct capitaliation is =   $390,351= $390,000

Explanation:The abstracted going-in capitalization rates from the four properties will be calculated using

The going-in cap rate which is  first-year net operating income (NOI) divided by the initial investment or purchase price

For Comparable 1:  55,000/ 500,000= 0.110

Comparable 2:   50,400/420,000= 0.120

Comparable 3: 53,400/ 475,000=0.112

Comparable 4:  69,000/600,000= 0.115

Calculate the Simple Ave. we have 0.110+0.120+0.112+0.115/4= 0.114

The simple average of the four comparable cap rates is 0.114. Therefore  the indicated value of the subject property is $390, 351 gotten from

($44,500 / 0.114) = $390,351= $390,000

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3 years ago
Metlock Windows manufactures and sells custom storm windows for three-season porches. Metlock also provides installation service
Xelga [282]

Answer:

June 1 2020

No entry

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Cr Sales revenue $1,730

Cr Unearned sales revenue $550

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Explanation:

Preparation of the journal entries for Geraths in 2020

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No entry

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Dr Cash $1,980

Dr Accounts receivable $300

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Cr Unearned sales revenue $550 ($630/$2,610*$2,280)

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6 0
2 years ago
T. L. Jones Trucking Services establishes a petty cash fund on April 3 for $500. By the end of April, the fund has a cash balanc
djyliett [7]

Answer:

The question is missing some figures which can be seen from the attached image.

Petty cash is a fund set aside in the office to pay minor day to day expenses incurred.Usually, an amount is made available at the beginning of period called float,from which expenses can be paid and the amount equal to spend is reimbursed at the end of the month.

In order, to make payment even more easier,some businesses take up credit cards from financial institutions,from  which expenses can be paid on account.

The balance of $415 means in petty fund,implies that $85  spent needs to be replenished at month end and that the remaining expenses were paid with credit card.

Explanation:

Find in the attached spreadsheet the entries posted in respect of petty cash and credit card expenses in the month.

5 0
3 years ago
"Redfox Pest Control Service had revenues of $425,000 and expenses of $338,000 for the current year, ended June 30. At the begin
andrew-mc [135]

Answer: The options are given below:

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B. $267,250

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7 0
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