1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
poizon [28]
3 years ago
13

If the capitalization rate on a building that produces a $20,000 annual income is 10 percent, what is the estimated value of the

building?
Business
1 answer:
AysviL [449]3 years ago
7 0

Answer:

Value of building = $200,000

Explanation:

Provided capitalization rate = 10%

Annual income = $20,000

Estimated value of asset = \frac{Annual\ Income}{Capitalization\ Rate}

Since, all the information related to variables used in calculating value are provided we can compute the value of building.

Value of building = \frac{20,000}{0.10} = $200,000

You might be interested in
Each Cutco knife goes through 30 steps to ensure that it meets the firm's standards and provides a good value for a premium prod
ladessa [460]

Answer:

Quality control

Explanation:

Quality control is a system of maintaining quality by periodically testing a sample of the output to ensure that is within the specifications.

4 0
3 years ago
The video describes an instance in which Dominic discovered that a heart surgeon had just taken a new job at a large hospital wh
Maru [420]

Answer:

Prospecting

Explanation:

Prospecting is the initial phase in the business procedure, which comprises of distinguishing potential clients, otherwise known as possibilities. The objective of prospecting is to build up a database of likely clients and  deliberately speak with them with expectations of changing over them from potential client to current client. Prospecting, done right, not just makes a pipeline of potential clients, it positions you as a confided in guide.

8 0
4 years ago
Jeri and Knute are members of Lighthouse Tours LLC, a limited liability company. With respect to Lighthouse Tours’s liability, a
slava [35]

Answer:

Personal liability

Explanation:

Jeri and Knute are shareholders in lighthouse tours LLC. As lighthouse tours LLC is a limited liability company, Jeri and Knute enjoy limited liability.

Legally, lighthouses LLC is independent of its shareholders. It has the right to own assets and incur liabilities. Should the company get to the dissolution stage, its assets will be used to settle its obligations. If the assets of the company are not sufficient, the shareholders' private properties cannot be used to pay the debts.  Jeri and Knute will be liable only to the extent of capital contribution.  

8 0
3 years ago
Jansen Company’s general ledger showed a checking account balance of $25,120 at the end of May 2021. The May 31 cash receipts of
Alexxandr [17]

Answer:

$2,000

Explanation:

Use the format

Jansen Company’s

Bank reconciliation as of May 31, 2013.

Balance as per Bank Statement

Add Outstanding Checks

Less Unpresented Checks

Balance as per Cash Book

5 0
3 years ago
Company Pea owns 90 percent of Company Essone which in turn owns 80 percent of Company Esstwo. Company Esstwo owns 100 percent o
ankoles [38]

Answer:

Company Pea

Consolidated financial statements should be prepared to report the financial status and results of operations for:

Essone - 90%

Esstwo = 72% (90% x 80%)

Essthree = 72% (90% x 80% x 100%)

Explanation:

Company Pea is described as the holding or parent company of Company Essone.  This means that Essone is Company Pea's subsidiary.  In preparing consolidated financial statements to report the financial status and results of operations for Company Essone, Company Pea will consolidate 100% of Company Essone while accounting for noncontrolling interest of 10% (effectively 90%).

When Company Essone is consolidating its financial statements, it should consolidate 80% of Company Esstwo while Esstwo consolidates 100% of Company Essthree.

But since Essthree is also a subsidiary of Company Pea, Company Pea will consolidate Esstwo and Essthree's financials to the tune of 72% respectively, while consolidating 90% of Essone's.

8 0
3 years ago
Other questions:
  • The current market demand for paper clips is 320 million and its market development index is 55. calculate the approximate marke
    11·1 answer
  • Which position is responsible for the direct management of all incident-related tactical activities?
    7·1 answer
  • Which of the following tools is an example of monetary policy?
    8·2 answers
  • _____ is important because it helps you create a plan to complete all tasks.
    15·2 answers
  • What type of life policy covers two people and pays upon the death of the last insured?
    8·1 answer
  • You are writing a report advocating that your company increase its use of social media. Your manager has said several times that
    15·1 answer
  • In an effort to get him to clean his bedroom, zack's mother gave him a gold star every time he cleaned it. each time he earned f
    13·1 answer
  • "Consider the futures contract written on the S&P 500 index and maturing in one year. The interest rate is 3%, and the futur
    8·1 answer
  • Howard Cooper of Owens Corning Fiberglass talks to David Weekley, a homebuilder, to find out how much fiberglass insulation he i
    11·1 answer
  • An organization's internal stakeholders consist of Multiple Choice a.the board of directors, customers, and local government.b.t
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!