A property's operating expenses are twice the annual debt service are no vacancies. PGI is $70,000 per year, and the CFBT is $10,00 mortgage on the property was at 6%, for 20 years, with monthly pa If the investor paid 40% down, borrowing the other 60%, what pric paid for the property (to the nearest $000)? $554,000 $388,000 $582,000 $463,000

Q: A company is considering purchasing a new piece of machinery at a cost $50,000. It is expected to…

A: Economic Value Added Economic value added is referred to as the economic profit which is calculated…

Q: A contractor's price for a new building was $116,000. You decide to buy the building, making a…

A: Introduction:- A mortgage is a loan being used to purchase or keep the property, lands, or any other…

Q: What will be the annual cash outflows for Mimi Inc. if it leased a milling machine for $8,200 per…

A: The cash flows for the lessor are ascertained by adjusting the lease payments with depreciation…

Q: A property was bought for 100 million and was sold 10 years later for $240 million. The property was…

A: Solution- Given that Property bought=100 million Sold=$240 million Interest on mortage=3.75% Per…

Q: BILDA S. A., a hypothetical company, borrows €1,000,000 at an interest rate of 10 percent per year…

A: Interest Capitalization:   Interest capitalization refers to the interest amount that is added to…

Q: A house is selling for $180,000. A deposit of $10,000 was made when the sales contract was signed.…

A: Proceeds from sale of any property refers to the net amount received from the sales after deducting…

Q: A property is for sale with an asking price of $2.75 million. The property is assumed to increase in…

A: Debt coverage ratio refers to the ratio which states the amount of operating income available for…

Q: A group of private investors purchased a condominium complex for $3 million. They made an initial…

A: The loan amount (PV) is $264,000 ($300,000 × (1-12%). The number payments (n) are 56 (14 × 4). The…

Q: A property is expected to have NOI of $124,000 the first year. The NOI is expected to Increase by 5…

A: A participating loan: A participating loan is a loan where the lender also has the right to a share…

Q: A firm takes out a $300,000 loan to purchase an asset. It makes yearly payments of $30,000 plus…

A: Before tax cash flow is calculated in real asset property. It is the net income after subtracting…

Q: Emaar Builders need to acquire the use of a crane for construction business, and are considering…

A: crane cost = 2,500,000 stright line depreciation and zero salvage time period = 5  lease rent =…

Q: Temple Corporation purchased a piece of real estate, paying $4,000,000 cash and financing $7,000,000…

A: Accrued InterestAccrued interest is the amount of interest earned on a debt, such as a bond, but not…

Q: General Computers Inc. purchased a computer server by taking a loan of $33,000 at 3.50% compounded…

A: Amount of loan “L”= $33,000 Rate = 3.5% compounded semi-annually Semi-annual rate “r” = 3.5%/2 =…

Q: Island News purchased a piece of property for $1.17 million. The firm paid a down payment of 20…

A: Given info, Value of the property = $1.17 million Down payment = 20% in cash Loan term = 20 years…

Q: 2. Kingston Development Corp. purchased a piece of property for $2.79 million. The firm paid a down…

A: Solution:- When a loan is taken, it can either be repaid as a lump sum payment or in installments.…

Q: ABC Date Enterprise takes out a $40,000 loen to finance the purchase of new physical capital. It…

A: Data given: Loan amount  (L) = $40,000 n= 1 year i= 8% Corporate tax  rate= 40%

Q: a)A loan of $15,000 is made today at an interest rate of 18% compounded weekly, a payment of $3000…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: (a) Declining balance method, (b) DDB method, (c) sinking fund method g iven interest rate at 12.5…

A: Since this is multi- part question, we are going to solve only first three parts for you. To get the…

Q: A company buys a solar panel unit for P105,000. The shipping and installation fees amount to…

A: There are different methods of depreciation. That method of depreciation which is most suited should…

Q: Temple Corporation purchased a piece of real estate, paying $4,000,000 cash and financing $7,000,000…

A: Every monthly instalment includes the Principle amount and Interest amount. Payment of Principle…

Q: Franchise. Seattle Corporation pays a franchise fee of $20 million to enable it to sell Good's…

A: a . Annual Amortization = Franchise cost / useful life…

Q: A lessor made an investment of ₱550,000 in equipment with an expected life of 5 years. He determined…

A: Given: Year = 5 Cost of investment = ₱550,000 Cost of sales = ₱120,000 Maintenance cost = ₱150,000…

Q: SIX Company, a lending institution lent P2,000,000 at 8.0000% per annum, to LAMANEH, Inc. The loan…

A: Financial instruments are contracts that can be bought, sold, created, modified, or settled for…

Q: A $270,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 25 year…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: White Corporation has decided to purchase a new machine that costs $3.2 million. The machine will be…

A: Buy it or lease it decision: Every company wants to maximize its net income. The best method to…

Q: The purchase price of a property, land and improvement, was Php 16,250,000. You put 20% down payment…

A: Computing the Net Operating Income: The net operating income is calculated as the difference between…

Q: AFX Sdn Bhd is trying to decide whether to accept a business loan or a lease financing facility for…

A: Lease agreement: It is an agreement wherein one party promises the lessee to rent the property or…

Q: A property is expected to have NOI of $100,000 the first year. The NOI is expected to increase by 5…

A: given information Net operating income = $100,000 NOI percentage increase = 5% property value =…

Q: Falco Inc. financed the purchase of a machine with a loan at 3.50% compounded semi-annually. This…

A: Present value of annuity Annuity is a series of equal fixed payment, made at equal interval over a…

Q: Tricana Corporation borrowed $75,000.00 at 3% compounded monthly for 14 years to buy a warehouse.…

A: Borrowed amount is $75,000.00 Interest rate is 3% compounded monthly Time period is 14 years To…

Q: Winter Break Inc. obtained a $600,000 loan for a new building valued as $1,100,000. The loan…

A: Amortization is the process of spreading payments over multiple time periods in business. The term…

Q: A corporation has decided to use borrowed capital to finance a portion of an equipment purchase. The…

A: Loans are the debt obligations of a company that are shown on the liabilities side. These are paid…

Q: A house is selling for $180,000. A deposit of $10,000 was made when the sales contract was signed.…

A: Financing through a loan is the acquisition of required funds through the mode of loans, that is,…

Q: Overnight Trucking recently purchased a new truck costing $150,800. The firm financed this purchase…

A: In the following question we are required to calculate the number of years it will take for the…

Q: A lessor made an investment of ₱550,000 in equipment with an expected life of 5 years. He determined…

A:

Q: General Computers Inc. purchased a computer server for $70,000. It paid 35.00% of the value as a…

A: Purchase of Computer Server = $70,000 Down payment = $24,500 (being 35% of $70,000) A loan is taken…

Q: A company is considering purchasing a new piece of machinery at a cost $60,000. It is expected to…

A: Economic Value Added = Net Operating Profit After Tax - ( Cost of Capital * Invested Capital)

Q: MacElroy Trucks recently purchased a new rig costing S130,000. They financed this purchase at 12…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A piece of property is purchased for $25,000 and yields a $1500 yearly net profit. The property is…

A: Given information: Property purchased for $25,000 Yearly net profit yield is $1,500 Number of years…

Q: ou have purchased a building for $12,000,000. There are ongoing NNN leases that will create a…

A: Acquiring  a property:  The acquisition of a building or property can be entirely financed by the…

Q: Wolfson Corporation has decided to purchase a new machine that costs $3.6 million. The machine will…

A: Company is needed capital to finance its assets. These assets would be considered either through…

Q: The Roxxon Energy Corporation has a current debt of $33,000 that generates interest at a rate of…

A: Current debt = $33000 Interest rate (r) = 3.4% per annum = 1.7% semiannually Let the equal payments…

Q: The company buys an asset that costs $11,200 and returns net cash flow of $160 per month for 3…

A: NPV is the present value of cash inflows less present value of cash outflows. IRR is the discount…

Q: with salvage value 0 at the end of 5 years. In contrast, the lease rent is Rs.3000 p.a. to be paid…

A: in this problem we have to calculate present value of lease payment and present of purchase and…

Q: A property is available for sale that could normally be financed with a fully amortizing $80,000…

A: A completely amortizing payment is a sort of debt payback that is made on a regular basis. If the…

Q: A house is selling for $180,000. A deposit of $10,000 was made when the sales contract was signed.…

A: Brokers commission =5% of the purchase price  = 5% * 180000 = 9000

Q: The McDonald Group purchased a piece of property for $1.2 million. It paid a down payment of 20% in…

A: Given, Property Price = 1.2 million Down-payment = 20% Loan taken = 1.2 million - 20% = 0.96 million…

Q: Block Associates borrowed $100,000.  The company plans to put aside money to repay the loan after 20…

A: A loan refers to a sum of the amount that is being borrowed by a borrower who is in need of funds…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.