On December 1, 2013, Crawley Corporation incurs a 15-year $400,000 mortgage liability in conjunction with the acquisition of an office building.

On December 1, 2013, Crawley Corporation incurs a 15-year $400,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $4,800, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, 2013. The portion of the second monthly payment made on January 31, 2014, which represents repayment of principal is...

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On November 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with...

On November 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% per year. The second monthly payment is made on December 31, Year 1. How much of the second payment made on December 31, Year 1, represents interest expense? A. $400. B. $1,996. C. $2,000. D. $4,000.

On December 1, 2009, Fisher Corporation incurs a 30-year, $400,000 mortgage liability upon purchase of a warehouse.

.On December 1, 2009, Fisher Corporation incurs a 30-year, $400,000 mortgage liability upon purchase of a warehouse. This mortgage is payable in monthly installments of $4,116, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, 2009.1 How much of the first payment made on December 31, 2009, is allocated to repayment of principal? ___________________$2 What is the total liability related to this mortgage to be reported in Fisher’s balance...

On December 31, 2015, Wasley Corporation borrowed $400,000 on a 8%, 10-year mortgage note payable. The...

On December 31, 2015, Wasley Corporation borrowed $400,000 on a 8%, 10-year mortgage note payable. The note is to be repaid with equal semiannual installments, beginning June 30, 2016. Required a. Compute the amount of the semiannual installment payment using a financial calculator or Excel, and round amount to the nearest dollar. Payment: $Answer b. Prepare the journal entry (1) to record Wasley’s borrowing of funds on December 31, 2015, (2) to record Wasley’s installment payment on June 30, 2016,...

On December 15 of year 1 Javier purchased a building, including the land it was on,...

On December 15 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,432,000; $317,000 was allocated to the basis of the land and the remaining $1,115,000 was allocated to the basis of the building. Using MACRS, what is Javier’s depreciation deduction on the building for years 1 through 3? What would be the year 3 depreciation deduction if the building was sold on March...

On December 31, 20x5, the Patricia Corporation exchanged an office building for a shopping plaza with...

On December 31, 20x5, the Patricia Corporation exchanged an office building for a shopping plaza with another company. No cash exchange took place. Details of the transaction are as follows: Office Building - Original cost $1,800,000 Accumulated depreciation 1,300,000 Fair value 800,000 Fair value of shopping plaza 850,000 Patricia is a publicly accountable corporation. Required- a.Does this transaction have commercial substance? Explain. b.Assuming the transaction has commercial substance, write the journal entry to record this transaction. c. Assuming the transaction...

A homeowner takes out a 15-year mortgage in the amount of $400,000, fully amortized, monthly compounded,...

A homeowner takes out a 15-year mortgage in the amount of $400,000, fully amortized, monthly compounded, monthly payable, with an interest rate of 4.8% p.a. What is the remaining balance of the mortgage after 8 years (i.e., after the 96th payment)? (in %, 2 decimal places)

Question 1. We are considering an acquisition of an existing medical office building (MOB) to our...

Question 1. We are considering an acquisition of an existing medical office building (MOB) to our portfolio. There are 4 tenants. Tenants 1 and 2 occupy 15,000 and 8,000 square feet respective, at $19.00 per square foot. Tenant 3 has 10,000 at $20.00 and tenant 4 has 4,000 at $22.00. All the leases are presently expected to continue through the 4 year holding period and have CPI increases estimated at 2% per year. The asking price for the property is $3,000,000 of which 75%...

Intro You just took out a 15-year traditional fixed-rate mortgage for $400,000 to buy a house....

Intro You just took out a 15-year traditional fixed-rate mortgage for $400,000 to buy a house. The interest rate is 1.2% (APR) and you have to make payments monthly. Part 1 What is your monthly payment? Part 2 How much of your first monthly payment goes towards paying down the outstanding balance (in $)? Part 3 How much of your 13th monthly payment goes towards paying down the outstanding balance (in $)?

On January 1 of Year 1, Connor borrowed $400,000 under a mortgage note payable contract. The...

On January 1 of Year 1, Connor borrowed $400,000 under a mortgage note payable contract. The annual interest rate on this mortgage is 10% compounded monthly. This is a 15-year, fully-amortizing monthly mortgage. The monthly payments are $4,298.42 and are due at the end of each month, starting on January 31. On January 31 of Year 1, Connor paid an extra $5,000 on the mortgage, so the total payment on that date was $9,298.42. Connor made the regular $4,298.42 payment...

Suppose you are thinking about purchasing a small office building for $1,500,000. The 30-year fixed-rate mortgage...

Suppose you are thinking about purchasing a small office building for $1,500,000. The 30-year fixed-rate mortgage that you have arranged covers 80% of the purchase price and has an interest rate of 8%. Assume you were to default and go into foreclosure in year 10 of this loan. If the lender was able to sell this property for $700,000, how much does the lender stand to lose in the absence of PMI? Answer is 352,696. Can you please show calculation...

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