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Schach [20]
2 years ago
11

You bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small

, singlefamily houses. A property management firm that wants to continue leasing the eight houses has offered you $400,000 for the property. A developer wants to build a 12-story apartment building on the site and has offered $600,000. What value should you assign to the property
Business
1 answer:
andre [41]2 years ago
5 0

Answer:

$500,000

Explanation:

in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale

In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000

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obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as
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Long term liabilities.

Explanation:

This can be easily or mostly be used in companies and also firms. In most cases they are been tagged a non-current liability.

They are generally defined to be obligations that are not been settled for/paid off in the current year or accounting period. Therefore, debts of this kind are not due within a year. Dept of this kind ranges from notes payable to bonds payable, also mortgages and are also seen as leases in a company settings.

In as much as this is not good for a company's financial health, investors and creditors see how the company is financed through this. Current obligations are seen to be more risky than non-current debts because they will need to be paid sooner.

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4. Both the concentration and Herfindahl indices computed by the U.S. Bureau of Census tends to overstate the actual level. In a
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Answer:

The use of data aggregation leads to overstatement of the  concentration and Herfindahl indices

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The understatement of the degree of concentration in local markets happens because of the use of national and state data while computing the concentration in the local markets like gasoline and this is mainly caused by the presence of fewer industries in the market. The state and national data does not reflect the true concentration in the local market hence the degree of concentration is understated at the local level.

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