About what percent of civil lawsuits are decided in court (nearest half percent)? You bought your house in 2001 for $400,000. Zillow currently lists its value at $475,000. A similar house would cost $550,000 to build new from the ground up today. The declared value in Section I of your HO-3 policy has stayed the same at $400,000 for the past 20 years. You replaced the roof with 40-year shingles in 2011. A large tree branch falls on your roof in a windstorm, causing $22,000 damage. How much will you be reimbursed by your insurer?
Q: Toni asked Adler, a real estate broker, exclusive agency to sell her farm house, and promised to pay…
A: Alder is not entitled to receive any commision because toni had found the buyer and made the…
Q: The Lyns live in their own home at 40 Cavin Ave, on which they have a mortgage balance of…
A: Loan amount is 75% of purchase price or property value which ever is lower maximum up to $20,000,000…
Q: Wilhelm has just completed his PhD. Although, he was in the workforce several years ago, Wilhelm…
A: Here discuss about the details of the most tax effective strategies which are used for Wilhelm for…
Q: Dan bought a hotel for $2,600,000 in January 2011. In May 2015, he died andleft the hotel to Ed.…
A: The estate tax is tax payable on the estates i.e. property owned by an individual. When a person…
Q: 3. At 45 years of age, Sean figured he wanted to work for 10 years more and then retire. He had…
A: in this we have to find present value of future value.
Q: The property of Vin's Garage is worth $400,000. Vin has a fire insurance policy of $160,000 that…
A: Meaning of Insurance :- Insurance is a legal agreement between two parties i.e. the insurance…
Q: Mr. Han has an HO-3 contract with $100,000 dwelling coverage, $50,000 personal property coverage,…
A: Given:Mr. Han,Contract with dwelling coverage=$100000Personal property coverage=$50000 and $500…
Q: Brooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style…
A: MARR or Minimum acceptable rate of return is the minimum rate of return that investors are expecting…
Q: The Lyns live in their own home at 40 Cavin Ave, on which they have a mortgage balance of…
A: The Purchase price for the new house at $170,00,000. The valuation for the house is $160,00,000…
Q: A major property developer is concerned about lack of sales due to local economic conditions. To…
A: The effective annual rate of interest is the interest rate actually earned on the amount of loan or…
Q: Four years ago, when you were 24, you graduated from college and landed a good paying job. At that…
A: Price appreciation on real estate means the rise in prices of houses and shows a upward movement.
Q: It is now December 31, 2008 (t = 0), and a jury just found in favor of a woman who sued the city for…
A: Here, Recovery of lost wages for pain and suffering is $200,000 Legal Expenses is $80,000 Salary…
Q: Fred is an investor in vacant land. When he thinks he has identified property that would be a good…
A: a. If Fred treats the right to refusal as an option to purchase the land, the asset on which he had…
Q: Mia owns a warehouse that has a cost basis of $114,400. The city condemns the warehouse to make room…
A: Recognized Gain occurs when the sale price of an asset exceeds the purchase price of the asset.
Q: Phil Dunphy, a real estate agent, is considering whether he should list an unusual $755,485 house…
A: GIVEN, COMMISSION ON SALE= $20,636 probability of sale = 71% LOSS ON UNABLE TO SALE=$5,573…
Q: Rebecca is moving away from New York City for her new job, so she must buy a car rather than rely on…
A: Estimate at completing shows the total cost of an instrument till the time of completion. It is…
Q: client who is in his 70's. in 2020, he incurred significant capital losses in the amount of $65,000…
A: The capital losses are very common methods of making loss but only $3000 can be adjusted against…
Q: The Lyns live in their own home at 40 Cavin Ave, on which they have a mortgage balance of…
A:
Q: Robby's old house was for sale from April 2019 for £745,000 (he bought it on 6 April 2001 for…
A: Tax is the liability calculated on the income earned and paid to the government.
Q: Catherine buys and sells real estate. Two weeks ago, she paid $300,000 for a house on Pine Street,…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1. Alex owns a home with a replacement value of $320,000. The homeowners policy has an 80%…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: Brooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style…
A: The PV analysis provides the investor with information regarding the overall actual costs that the…
Q: Which of the following sets of Excel entries will correctly solve this problem: Jim paid $138,000…
A: Future value is the value of present cashflow at future date compounded at the specified rate.
Q: A hurricane (in a federally declared disaster are) destroys Kirk’s boat in 2020. The boat is worth…
A: The federally declared disaster is consider as the events that is incurred unexpectedly and…
Q: Valley Pizza’s owner bought his current pizza oven two years ago for $9,000, and it has one more…
A: Decision analysis: It can be defined as a process that is used by the decision-maker in selecting…
Q: Phil Dunphy, a real estate agent, is considering whether he should list an unusual $393,668 house…
A: Here, Sale Price of House is $393,668 Expenses are $4,295 Commission on sale is $16,068 Probability…
Q: A few years ago, Nuts, Bolts and Brackets, Inc purchased a small warehouse. The firm paid $2.200,000…
A: Capital expenditures refer to the amount of money spent for acquiring fixed assets or properties…
Q: Noah Yobs, who has $97,000 of AGI (solely from wages) before considering rental activities, has…
A: As per the IRS, the collection of rent from property is a passive activity and the losses can be set…
Q: Last year, Thea and Rory Brown bought a home with a dwelling replacement value of $350,000 and…
A: A policyholder makes a formal request to an insurance company for coverage or compensation for a…
Q: George is the owner of numerous classic automobiles. His intention is to hold the automobiles until…
A: Present value (PV) is defined as the current amount of future sum of money provide a particular rate…
Q: Luis is responsible for buying some specialized manufacturing equipment that has a purchase price of…
A: Computation:
Q: A well-informed photographer with her hand is a contractor who has contracts that include mound…
A:
Q: Phil Dunphy, a real estate agent, is considering whether he should list an unusual $516,464 house…
A: Here we have to use probability method to calculate profit.
Q: A week before the expiration of the period, Aki told Jannie that she is no longer willing to sell…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : Aki…
Q: The Lyns live in their own home at 40 Cavin Ave, on which they have a mortgage balance of…
A: Calculation of Amortization table showing the balance at maturity is shown below
Q: Joy, a sole proprietor involved in AirBnB, needs to sell almost all of his apartments. The selling…
A: Introduction Depreciated replacement cost refers to the current replacement cost after…
Q: Catherine buys and sells real estate. Two weeks ago, she paid $300,000 for a house on Pine Street,…
A: The concept used is:
Q: In the current year, Brit had a federally declared disaster fire hit her house that damaged a couch…
A: When an asset is exchanged at a fair price between knowledgeable and desirous parties, the sum for…
Q: A real estate photographer would like to invest in a drone camera so that she can take better aerial…
A: A. The after-tax present worth of the drone = PV of after-tax Cash inflows + PV of Tax benefit of…
Q: Alan Meer inherits a hotel from his grandmother, Mary, on February 11 of the current year. Mary…
A: Given that Fair market value of hotel = $725000
Q: The Lyns live in their own home at 40 Cavin Ave, on which they have a mortgage balance of…
A: Equity is defined as difference between assets and liabilities of the holding.
Q: The president of the company you work for has asked you to evaluate the proposed acquisition of a…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Dan bought a hotel for $2,600,000 in January 2011. In May 2015, he died and left the hotel to Ed.…
A: Fair value:Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Brooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style house that she is remodeling inside. She plans to keep this as her home for 20 more years. The house can be completely painted at a cost of $16,000. The paint is expected to remain attractive for 5 years, at which time repainting will be necessary. Every time the building is repainted (i.e., in years 5, 10, and 15), the cost will increase by 20% over the previous time. As an alternative, the exterior can be covered with a vintage-appearing vinyl-coated siding now and again 10 years from now at a cost 25% greater than the present cost of the siding. At a MARR of 10% per year, what is the maximum amount that Brooke should spend now on the siding alternative so that the two alternatives will just break even? Solve using factors. The maximum amount that Brooke should spend now on the siding alternative is $ . Note:- Do not provide handwritten solution. Maintain accuracy and quality in…Brooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style house that she is remodeling inside. She plans to keep this as her home for 20 more years. The house can be completely painted at a cost of $16,000. The paint is expected to remain attractive for 5 years, at which time repainting will be necessary. Every time the building is repainted (i.e., in years 5, 10, and 15), the cost will increase by 20% over the previous time. As an alternative, the exterior can be covered with a vintage-appearing vinyl-coated siding now and again 10 years from now at a cost 25% greater than the present cost of the siding. At a MARR of 10% per year, what is the maximum amount that Brooke should spend now on the siding alternative so that the two alternatives will just break even? Solve using factors. The maximum amount that Brooke should spend now on the siding alternative is $Please help me understand this question?Kevin recently purchased a board form HO-2 policy with no deductible. The policy value is $174,000. A year later, his roof is damaged by vandalism and he suffers a loss of $139,200. If the replacement value of Kevin’s house is $290,000 and the insurance policy includes a replacement cost requirement of 80%, he will receive a reimbursement
- Which of the following sets of Excel entries will correctly solve this problem: Jim paid $138,000 for an old house to renovate. He spent an average of $3,216 per quarter over the next two years as he readied the renovated house for sale. He wants to set the price of the house high enough so that he will earn an annual rate of return of 12% for his investment. Given that information, what price should Jim set on the house?Jane had AGI of $70,000 in 2020. During the year, her personal winter cabin was damaged by a fire. Pertinent data with respect to the cabin follows: Cost basis $300,000 Value before the fire 450,000 Value after the fire 125,000 Insurance recovery 350,000 What is Jane's itemized casualty loss deduction? B) Hannan lives and works in Pittsburgh. He travels to Montecito for eight days. If six days are spent on business and two days are spent on sightseeing and visiting relatives, only 75% of the airfare is deductible.Barbara Thompson is considering the purchase of a piece of business rental property containing stores and offices at a cost of $350,000. Barbara estimates that annual receipts from rentals will be $55,000 and that annual disbursement. other than income taxes will be about $18,000. The property is expected to appreciate at the annual rate of 5%. Barbara expects to retain the property for 20 years once it is acquired. Then it will be depreciated on the basis of the 39-year real-property class (MACRS), assuming that the property would be placed in service on January 1.Barbara's marginal tax rate is 30%, and her MARR is 10%. What would be the minimum annual total of rental receipts that would make the investment break-even'?
- Richard Rambo presently owns the Marine Tower office building, which is 20 years old, and is considering renovating it. He purchased the property two years ago for $800,000 and financed it with a 20-year, 75 percent loan at 4.5 percent interest (monthly payments). Of the $800,000, the appraiser indicated that the land was worth $200,000 and the building $600,000. Rambo has been using straight-line depreciation over 39 years (1/39 per year for simplicity). At the present time Marine Tower is producing $52,000 in NOI, and the NOI and property value are expected to increase 2 percent per year. The current market value of the property is $820,000. Rambo estimates that if the Marine Tower office building is renovated at a cost of $200,000, NOI will be about 20 percent higher next year ($62,400 vs. $52,000) due to higher rents and lower expenses. He also expects that with the renovation the NOI will increase 3 percent per year instead of 2 percent. Furthermore, Rambo believes that after five…Richard Rambo presently owns the Marine Tower office building, which is 20 years old, and is considering renovating it. He purchased the property two years ago for $800,000 and financed it with a 20-year, 75 percent loan at 4.5 percent interest (monthly payments). Of the $800,000, the appraiser indicated that the land was worth $200,000 and the building $600,000. Rambo has been using straight-line depreciation over 39 years (1/39 per year for simplicity). At the present time Marine Tower is producing $52,000 in NOI, and the NOI and property value are expected to increase 2 percent per year. The current market value of the property is $820,000. Rambo estimates that if the Marine Tower office building is renovated at a cost of $200,000, NOI will be about 20 percent higher next year ($62,400 vs. $52,000) due to higher rents and lower expenses. He also expects that with the renovation the NOI will increase 3 percent per year instead of 2 percent. Furthermore, Rambo believes that after five…Robert Cooper is considering purchasing apiece of business rental property containing storesand offices at a cost of $250,000. Cooper estimatesthat annual disbursements (other than income taxes)will be about $12,000. The property is expected toappreciate at the annual rate of 5%. Cooper expectsto retain the property for 20 years once it is acquired.Then it will be depreciated as a 39-year real-propertyclass (MACRS), assuming that the property will beplaced in service on January 1st. Cooper’s marginaltax rate is 30% and his MARR is 15%. What wouldbe the minimum annual total of rental receipts thatwould make the investment break even?
- Talia’s Tutus bought a new sewing machine for $45,000 that will be depreciated over 5 years using double-declining-balance depreciation with a switch to straight-line. Required: Find the depreciation charge each year. If the sewing machine is sold after 2 years for $32,000, what will be the after-tax proceeds on the sale if the firm’s tax bracket is 25%?Luis is responsible for buying some specialized manufacturing equipment that has a purchase price of $10,000 and annual operating costs of $1000. The vendor is offering a special buyer incentive that provides free maintenance for the first four years. After that time, the maintenance is $500 per year over the 10-year life, and there is an overhaul expense in year 5 of $2000. The equipment has a salvage value of $1000. If the interest rate is 8%, what is the present value?Phil Dunphy, a real estate agent, is considering whether he should list an unusual $393,668 house for sale. If he lists it, he will need to spend $4,295 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $16,068. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 25%. What is the expected profit on this listing? Your Answer: