Answered: Why should corporations have their real…

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Why should corporations have their real estate appraised on a regular basis?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 14DQ

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What is the importance of annual reports of property companies to their prospective stockholders and to the government?
Why might the decision to own rather than lease real estate have an unfavorable effect on the corporation’s financial statements?
Which are two types of corporations that could be used for real estate?
. In acquiring a Long Term Asset, what are the tax benefits that an entity may have?
2. If a corporation purchases land and building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the cost of the building would depend on A) the intention of management for the property when the building was acquired. B) the significance of the cost allocated to the building in relation to the combined cost of the land and building. C) the length of time for which the building was held prior to its demolition. D) the contemplated future use of the parking lot.