You are conducting an appraisal using the comparison method. You have found twocomparable properties with the same square footage and parcel area. The sellingprice of Property 1014 was 10% less than Property 2056. Both comparables(property being appraised) are in the same neighborhood. Which notation in theappraiser's report could contribute to this difference in selling price. (Hint: Of thefactors listed, which would contribute to the greatest difference between the valueof the two properities).Utility bills of Property 1014 are 3% less than Property 2056Property 1014 was built in 1986 and Property 2056 was built in 1988.Property 1014 sold during the winter months when there are generally fewbuyers in the marketProperty 1014 has had a recent kitchen renovationProperty 1014 is closer to the regional hospital by 1.5 miles

Appraisal using comparison method is a real estate comparison method when we compare similar…

Answered: You are conducting an appraisal using…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 13P

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Similar questions

What is the estimated market value of a property that 3,500 sq. ft. and is adjacent to the freeway? Comparable Sales: One year ago a 2,600 sq. ft. property not adjacent to freeway sold for $250,000. This year a 2,600 sq. ft. property not adjacent to freeway sold for $325,000. A 3,500 sq. ft. property not adjacent to the freeway sold 1 year ago for $275,000. A 2,600 sq. ft. property sold this year for $300,000. Located adjacent to the freeway
Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $219,000. The appraised fair market value of the warehouse was $127,500, and the appraised value of the land was $185,750. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. What would be Bob’s basis in the warehouse and in the land if the appraised value of the warehouse was $102,500, and the appraised value of the land was $219,000?
Two buildings have just sold in the same office park as your property. All threeproperties were built by the same developer at the same time. Which valuation method will give you the best indication of the value of your building? a) DCF b) Comparable Property c) Capitalization Rate d) Replacement Cost Please ensure accuracy and explain your choice
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?
Which of the following are subjected to Value Added Tax (VAT)? A Sale by a real estate dealer of residential lot with a selling price or P800,000. B Sale by a real estate dealer of residential lot with a selling price of P3,500,000. C Sale by a real estate dealer of commercial lot with a selling price of P2,800,000. D Sale of residential lot classified as capital asset. E Sale by a real estate dealer of residential house and lot with a selling price of P3,000,000 F Sale by a real estate dealer of condominium unit with a selling price of P3,250,000 G Sale by a real estate dealer of parking lot in a condominium unit with a selling price of P850,000. H Sale of residential house and lot classified as capital asset with a selling price of P8,000,000.
What is the maximum price you would be willing to pay for the business? If an investor group purchased the restaurant near the campus for $255, 867 and the fair value of the assets they acquired was $202,000, identify the account along with its balance, that is used to record the additional amount paid over the fair value of the assets.
The deed we saw from 1910 (property near Belle Meade, Davidson Co., TN) lists the selling price for 303 acres of land at $12,000. In 2009, the property was appraised for $20,000,000. A non-profit group purchased it for $10,800.000. a. First, calculate the simple RO1 (%) based on the 1910 price and the 2009 price of $10,800,000. b. What other information would be useful in estimating the true profit made?
You are appraising a property located adjacent to a high speed freeway. Total area of the property is 2,400 sq. ft. Information on four comparable sales: (1) A year ago a 2,400 sq. ft. property not adjacent to freeway sold for $195,000. (2) A 2,800 sq. ft. property sold this year for $215,000. It is located adjacent to the freeway. (3) A year ago a 2,800 sq. ft. property not adjacent to freeway sold for $220,000. (4) A 2,800 sq. ft. property adjacent to the freeway sold a year ago for $200,000. What is the value of the adjustment factor for location and what is the estimated market value of the property under consideration?
Tones Company purchased a warehouse in a downtown district where land values are rapidly increasing. Gerald Carter, the controller, and Wilma Ankara, financial vice president, are trying to allocate the cost of the purchase between the land and the building. Noting that depreciation can be taken only on the building, Carter favors placing a very high proportion of the cost on the warehouse itself, thus reducing taxable income and income taxes. Ankara, his supervisor, argues that the allocation should recognize the increasing value of the land, regardless of the depreciation potential of the warehouse. Besides, she says, net income is negatively impacted by additional depreciation and will cause the company's stock price to go down. Instructions: Answer the following questions: (a) What stakeholder interests are in conflict? (b) What ethical issues does Carter face? (c) How should these costs be allocated?
At this very moment, an online auction is occurring in Jackson TN, and the bidding relates to a high-quality currently occupied, 11,260 square foot medical office building that was constructed in 2007. The building is situated on a 1.93-acre lot which goes along with the building. (a) What information must you have in order to make an intelligent bid? Explain. (b) What rate of discount will you use and why?
Finley Co. is looking for a new office location and sees a building with a fair value of $400,000. Finley also notices that much of the equipment in the existing building would be useful to its own operations. Finley estimates the fair value of the equipment to be $80,000. Finley offers to buy both the building and the equipment for $450,000, and the offer is accepted. Determine the amounts Finley should record in the separate accounts for building and equipment.
You own a construction company and have recently received a contract with the local school district to refurbish one of its elementary schools. You are given an up-front payment from the school district in the amount of $5 million. The contract terms extend from years 2018 to 2020. When would you recognize revenue for this payment? What method of accounting would you use for this construction project and why? What would be the benefits and challenges with your method selection? Give an example of your distribution selection and associated costs of the project (you may estimate based on other industry competitors). What might be some benefits and challenges associated with the other method of construction revenue recognition?

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