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lakkis [162]
3 years ago
7

A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $40,000, vaca

ncy and credit losses of $3,500, and operating expenses of $16,000. Using a capitalization rate of 8%, what is the indicated value (to the nearest $1,000)?
Business
2 answers:
luda_lava [24]3 years ago
6 0

Answer:

<em>Value $  256,250</em>

<em>rounding against nearest 1,000 dollar: 256,000</em>

<em />

Explanation:

From the gross income we subtract the expenses and vanacy losses.

40,000 gross income - 3,500 vacancy - 16,000 operating expense

20,500 net

<em />

Now, we solve for the present value of a perpetuity given the capitalziation rate of 8%

$ 20,500 /  0.08  =  <em>$  256,250</em>

Anton [14]3 years ago
5 0

Answer: $256,000

Explanation:

Given the following ;

Gross income = $40,000

Vacancy and credit losses = $3,500

Operating expenses = &$16,000

Capitalization rate = 8%

Using the income capitalization approach, property is valued based based on the revenue which it could potentially generate. These includes property which could be leased, whereby money is generated from lease amount.

Cost incurred is deducted from revenue to get the net income

Net income = Gross income - cost incurred

Gross income - (Vacancy or credit losses + operating expense)

$40,000 -($3,500+$16,000)

$40,000 - $19,500 = $20,500

Net income = $20,500

Net income ÷ capitalization rate

$20,500 ÷ (8÷100)

$20,500 ÷ 0.08 = $256,250

Indicated value = $256,000 (to the nearest 1000 dollar)

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On January 1, 2017, Accounts Receivable and Allowance for Uncollectible Accounts for Darius Company carried balances of $20,000
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(C) $745

Explanation:

The computation is given below:

For computing the bad debt  expense, first we have to determine the ending account receivable balance which is shown below:

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3 years ago
Under the First Amendment, commercial speech is:
Dmitriy789 [7]

Answer:

The correct answer is the option A: subject to intermediate scrutiny unlike political speech.

Explanation:

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On the other hand, the <em>Commercial Speech</em> under the First Amendment is seen as a particular case of speech due to the fact that this one can be harmful for the people and therefore can be fraudulent to them and in order to prevent that from happening the First Amendment does not protect so much the commercial speech and this last one is far more regulate it by the government than political speech.

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David’s friend, Keanu, has hired a financial planner for advice on retirement. Considering Keanu’s current expenses and expected
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Answer:

28.85

Explanation

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