Answer:
Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.
Explanation:
Giving the following information:
Kay walks dogs for $7.50 each. Her total cost each day is $45—she spends $35 a day on gas driving to different neighborhoods, and her liability insurance and other fixed costs average out to $10 per day.
Kay walks five dogs a day.
Income= 7.5*5= $37.5
Total cost= 45
Loss= (7.5)
Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.
Answer: $672,000
Explanation:
Porter sold land to Simi which means that their land balance reduces. Simi's however increases by the same amount. As Porter owned all the voting stock, the sale will be accounted for at the book value.
The Consolidated balance for land in 2020 will therefore be calculated as,
= (Porter land value - Sales price) + (Simi land value + Sales price)
= (416,000 - 65,000) + (256,000 + 65,000)
= 351,000 + 321,000
= $672,000
The book value of the Consolidated land will be $672,000 in 2020.
GAAP requires you to use accrual based accounting (where revenue is earned and expenses are incurred) and not cash based.
So, The type needed is choice A.
Answer:
$33,000,000
Explanation:
In real estate, NOI refers to net operating income and it represents how much money a landlord can expect to earn from a real estate investment. It generally applies to rental income.
Since Monica's cap rate is 5%, then she should be willing to pay up to $1,650,000 / 5% = $33,000,000.
The higher the cap rate, the more an investor earns on a real estate investment, but it also represents a higher risk. It is similar to the rate of return of other types of investments.
