An appraiser is working on an appraisal of an office building that is 50% occupied. Which real estate interest would the appraiser be providing?
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An appraiser is working on an appraisal of an office building that is 50% occupied. Which real estate interest would the appraiser be providing?
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- During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?Jax Construction Company plans to erect a new building. It will use part of the space for its own offices and lease the balance of the space to tenants. The company has two alternatives: (1) do its own construction work or (2) use an independent contractor. Cost estimates have been prepared to show the costs of operation for the coming year during which the new building will be constructed. The costs of constructing the building, if done by Jax, are included in that set of estimates. If the company does its own construction work, it will not be able to handle outside construction contracts that would contribute $500,000 to net income. The costs attributable to these outside contracts are excluded from the estimated costs of operation shown below. Estimated Costs toOperate –Construction byIndependentContractors Estimated Costs toOperate (includingConstruction) –Construction by Jax(self) Materials $6,000,000 $7,000,000 Labour 3,000,000 4,800,000 Indirect materials and…you are considering bidding of a piece of land. According to zoning, the land could be used for construction of office, retail or mixed use. The annual rental income from the Office building, Retail building and Mixed use building are 3, 2.7 and 2.8 million respectively. Expenses to operate the office building, retail building and mixed use building are 1.08, 1.2 and 1.1 million respectively. Capitalization rates for the office building, retail building and mixed use building 10%, 11% and 10.5% respectively. Construction costs for the office building, retail building and mixed use building are 10, 8, 9 million respectively. What is the highest bidding price you are willing to tender for this piece of land?
- Shirley is studying depreciation in her engineering management course. The instructor asked her to graphically compare the total percent of first costdepreciated for an asset costing B dollars over a life of n = 5 years for DDB and 125% DB depreciation. Help her by developing the plots of percent of B depreciated versus years. Use a spreadsheet unless instructed otherwise.Appraiser John is evaluating a 1,200-square-foot log cabin, whose owner is refinancing. He determines that the cost to replace the building would be $80 per square foot. He estimates the depreciation of the cabin to be 20% and the value of the land to be $48,000. What is John's estimate of value? $115,200 $124,800 $148,800 $163,200Karl bought a building and the land on which it is located for $186,100 cash. The land is estimated to represent 65 percent of the purchase price. The company paid $33,100 for building renovations before it was ready for use. When preparing a journal entry to record all expenditures, the debit to Building would be: $_______
- During the current year, Alanna Co. had the following transactions pertaining to its new office building. Purchase price of land $120,000 Legal fees for contracts to purchase land 3,000 Architech fees 17,000 Demolition of the old building on site 9,000 Sale of scrap from old building 6,000 Construction cost of new building 700,000 A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. $fill in the blank 1 B. What should Alanna Co. record on its books for the building? $fill in the blank 2When the air conditioning system is due for replacement, it is estimated that the old system will be dismantled and sold for $500,000. Depreciation is time-apportioned where appropriate. At what amount will the office building be shown in Tibet’s statement of financial position as at 31 March 20X5?Laramie Company has acquired a property that included both land and a building for $600,000. The company hired an appraiser who has determined that the market value of the land is $370,000 and that of the building is $400,000. At what amount should the company record the cost of the building? (Round any intermediate calculations to two decimal places and your final answer to the nearest dollar.)
- Prince company had bought $5,400,000, and additional realtor's fee of $50,000 an office building and the lot it is built. Calculate the initial measurement of the building and lot. These are the information pertaining the property bought: Current Appraised Value Seller's Original Cost Lot 2,000,000 1,400,000 Office Building 3,000,000 2,800,000 5,000,000 4,200,000Calculate the following: The first year of depreciation on a residential rental building costing $250,000 purchased June 2,2019. $_____________ The second year (2020) of depreciation on a computer costing $5,000 purchased in May 2019, using the half-year convention and accelerated depreciation considering any bonus depreciation taken. $______________ The first year of depreciation on a computer costing $2,800 purchased in May 2019, using the half-year convention and straight-line depreciation with no bonus depreciation. $______________ The third year of depreciation on business furniture costing $10,000 purchased in March 2017, using the half-year convention and accelerated depreciation but no bonus depreciation. $______________Angela purchased a rental property on August 1, 2021, for $172,400. She hired an architect to draw up remodeling plans, and then spent 55 hours doing the actual demolition and construction herself. Which of the following expenses affect her adjusted basis? Mortgage insurance premiums of $1,150, included at closing. $275 in appraisal fees paid at closing and required by her lender. The fair market value of remodeling labor done by Angela. [$35/hour x 55 hours = $1,925] Fees charged by the architect, totaling $975. Philip purchased a small apartment complex in 2021. He paid $375,000 for it; there was no specified value for the land in the contract. The most recent real estate assessment had the property valued at $350,000, of which $308,000 was for the building and $42,000 for the land.Assuming no other expenses, what is Philip's basis in the apartment building? $308,000 $330,000 $350,000 $375,000 please help me