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hichkok12 [17]
3 years ago
11

If the going cap rate for an office building in a particular market is 6.25%, what will the purchase price be if the NOI on the

property is $325,000.
Business
1 answer:
kirill [66]3 years ago
8 0

Answer:

$5,200,000

Explanation:

We know that

Cap rate = Net operating income ÷ Purchase price of the property

where,

Cap rate is 6.25%

And, the net operating income on the property is $325,000

So, the purchase price of the property would be

= $325,000 ÷ 6.25%

= $5,200,000

We simply applied the above formula to find out the purchase value of the property

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Answer:

Sunland Inc.

Adjusting Journal Entries:

Account Titles and Explanation     Debit      Credit

Interest Expense                            $1,152

Interest Payable                                          $1,152

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Deferred Revenue                                       $2,600

To record deferred rent revenue for 2 months.

Supplies Expense                         $1,570

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To record supplies expense for the period.

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According to the given question, the culture is the defined as the knowledge for the specific religion or the group in the society. When we used to share the traditions, expectations and the beliefs withing the specific society or a group.

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