What factors would result in property increasing in value over a holding period?

Q: What entry is made when selling a fixed asset?

A: Following entry is passed when selling the fixed assets:

Q: Explain the Basic Property Concepts Important in Real Estate Finance and Investment?

A: Financial prediction based on the analysis made by the real estate market which is helpful in the…

Q: Which of these are long-lived productive assets? (Check all that apply.)

A: A long-lived asset is any asset that a business expects to retain more than one year. In other mean…

Q: Give an Examples of Leasehold Estates?

A: The question is based on the concept of lease, which is consider as special type of time bond…

Q: What is the classification of long term assets? Explain them.

A: Long-term assets: Long – term assets are those assets that are generally held by a company for more…

Q: How are the total depreciation and final book value are calculated?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: What does General requirements for loan closing of land development?

A: The last step in financing or buying any land is known as the closing of a loan. The term settlement…

Q: Over what period should an addition to an existing long-lived asset be depreciated?Explain.

A:

Q: What is the purpose of depreciation

A: Depreciation is an accounting system for spreading out the expense of a tangible item over the…

Q: what is return on assets?

A: Return on Assets (ROA):- It is an indicator of how profitable a company is relative to its total…

Q: How can the marginal rate of return be used to decide when to sell a property?

A: Answer: The following are the factors that cause a change in marginal rate of return over time, An…

Q: What are the primary benefits of investing in real estate income property?

A: Advantages of real estate income property investment are: Tax benefits It helps the investors in…

Q: What does accumulated depreciation represent?

A:

Q: Explain Foreclosure property?

A: Foreclosure property means if someone who has lent money to an individual or association so that…

Q: What is the total loss on realization of assets?

A: Loss that is recognized when the assets are sold for a price is lower than the original purchase…

Q: What are some of the potential problems with using a “going-in”  capitalization rate that is…

A: Going-in-capitalization rate: Going-in-cap rate is the cap rate originated on the ratio of the…

Q: What is the relationship between depreciation and net income?

A: Depreciation is the part of cost of a asset which is charged to income statement yearly as a expense…

Q: What is the motivation for a sale-leaseback of the land?

A: Lease is the agreement between the two parties that is lesser and lessee where lesser allows the…

Q: What factors should be considered when deciding whether to renovate a property?

A: Availability of budget as one needs to consider the money factor regarding whether one have…

Q: w to determine what depreciation should be used

A: Solution Concept Depreciation                 Depreciation refers to the expense that is recorded…

Q: What are those long-lived assets?

A: Long lived assets are those assets that a business retains for long periods of time for use in the…

Q: How much is the initial cost of the asset?

A: Purchase price  Less: Trade discount/Rebate  Add: Import Duties  Add: Non refundable taxes  Add:…

Q: What does Lender Requirements in Financing Land Development?

A: The question is based on the concept of lend development loan provided by financial institution.…

Q: What is the indicated value of the subject property using direct capitalization, rounded to the…

A: Direct Capitalization Method: This method computes the value by dividing the net operating income…

Q: What is the difference between a current asset and a fixed asset?

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: What does Capital Recovery (Ownership) Cost?

A: Capital recovery cost It is an equivalent annual amount each year an asset must earn to recover…

Q: Which assets depreciate?

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: What will be the Simultaneous Effects of Real Market Forces and Interest Rates on Property Values?a

A: There are various factors which affect the long term trends and short term trends in values of…

Q: How do land improvements differ from land?

A: Land improvement:   Improvements are made on a plot of land in order to make it more usable. These…

Q: De depreciation?

A: Depreciation is…

Q: What kind of activities typically have the greatest impact on property values? a.​Federal b.​Local…

A: Factors to consider when pricing a home are: historic sales price, quality of the neighborhood, the…

Q: Explain Land Acquisition and Development Costs?

A: Land acquisition: It is the process by which the government acquires private property for a public…

Q: What are the factor payments for land, labor, and capital?

A: The question is based on the concept of factor payment ,in financial economics factors are consider…

Q: How was the depreciation calculated?

A: As per the US tax laws, various rates of depreciation for each class of assets are specified. For…

Q: Illustrate the significance of depreciation and income taxes?

A: Depreciation is the charge against the usage, wear and tear or obsolescence of the asset in the…

Q: Explain Diversification by Property Type and Location?

A: The question is based on the concept of diversification in field of real estate investment.…

Q: What would the result of Capitalizing the purchase cost over time?

A: Capitalized Cost: A type of expense that is added or included in the cost basis of a non-current…

Q: What is a current asset?

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: What is the Importance of the Residual Value of Real Estate?

A: RESIDUAL TECHNIQUE IN REAL ESTATE- Residual techniques in business land valuation square measure…

Q: How can we determine the amount of property taxes over the machine's depreciable life?

A: Depreciation indicates the fall in the historical cost of fixed assets due to normal business…