Question

In: Finance

Use the following information to answer questions 44-46 using the sales comparison approach. A comparable property...

  1. Use the following information to answer questions 44-46 using the sales comparison approach.

    A comparable property sold 7 months ago for $231,200. The adjustments for the various elements of comparison have been calculated as follows:

    • Location: +4.5 %
    • Market conditions: -0.54% per month
    • Physical characteristics: + $4,500
    • Financing terms: -$3,500
    • Nonrealty items: +$5,200
    • Conditions of sale, Legal characteristics, Use: 0

    What is the value of the market conditions adjustment?*

    None of the above

    -$14,800

    -$8,600

    -$1,200

6 points

Question 45

  1. What is the value of the market adjusted normal sale price of the comparable?

    Answers are rounded to the nearest hundred.

    $227,700

    $213,000

    None of the above

    $219,100

6 points

Question 46

  1. What is the value of the location adjustment? Answers are rounded to the nearest hundred.

    $11,000

    +$10,400

    -$9,600

    +$9,900

Solutions

Expert Solution

The calculation is shown below done simply on a excel sheet:

Value of property 7 months ago 231200
Less : Adustment of 0.54% 1248
Value of Property 6 months ago 229952
Less : Adustment of 0.54% 1242
Value of Property 5 months ago 228710
Less : Adustment of 0.54% 1235.032822
Value of Property 4 months ago 227475
Less : Adustment of 0.54% 1228.363644
Value of Property 3 months ago 226246
Less : Adustment of 0.54% 1221.730481
Value of Property 2 months ago 225025
Less : Adustment of 0.54% 1215.133136
Value of Property 1 months ago 223810
Less : Adustment of 0.54% 1208.571417
Value of Property today 222601
TOTAL ADJUSTMENT TO THE MARKET 8600

44 ) The market condition adjustment values to -$8600. ( see above) it is calculated by adding all the adjustment shown in the chart for 7 months.

45) As you can see the market adjusted normal sale price of the property should be $222600 , which is not present in the option , so the correct answer would be non of the above.

46) The location adjustment can be simply calcuated as 4.5% of 231200 = +$10400.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Discuss the “Comparison” or “Comparable” type of approach to value property and what type of property?
Discuss the “Comparison” or “Comparable” type of approach to value property and what type of property?
Use the following information to answer questions 42 to 44: The following summary data are from...
Use the following information to answer questions 42 to 44: The following summary data are from a performance report for CDE Ltd for June, during which 11,000 units were produced. Budgeted production was 10,000 units. Budget (10,000 units) Actual Costs (11,000 units) Variances    Raw materials $200 000 $208 800 $8 800 A    Direct labour $70 000 $71 000 $1 000 A    Factory fixed overhead $24 000 $24 200 $200 A $294 000 $304 000 $10 000 A...
Required information Use the following information to answer questions [The following information applies to the questions...
Required information Use the following information to answer questions [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 31,000 $ 30,000 Work in process 9,500 18,200 Finished goods 54,000 34,000 Activities and information for May Raw materials purchases (paid with cash) 197,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials...
Use the following information to answer the questions below:
Use the following information to answer the questions below: note: all sales are credit sales Income Stmt info: 2016 2017 Sales $ 975,000 $        1,072,500 less Cost of Goods Sold: 325,000 346,125 Gross Profit 650,000 726,375 Operating Expenses 575,000 609,500 Earnings before Interest & Taxes 75,000 116,875 Interest exp 25,000 31,000 earnings before Taxes 50,000 85,875 Taxes 20,000 34,350 Net Income $ 30,000 $              51,525 Balance Sheet info: 12/31/2016 12/31/2017 Cash 60,000 $ 63,600 Accounts Receivable 80,000 $ 84,000 Inventory...
Consider the following set of numbers: [46, 12, 54, 44, 13, 54, 12, 13, 44, 46]....
Consider the following set of numbers: [46, 12, 54, 44, 13, 54, 12, 13, 44, 46]. What is the rank of 12?
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 48,000 $ 48,000 Work in process 9,900 19,700 Finished goods 67,000 33,700 Activities and information for May Raw materials purchases (paid with cash) 194,000 Factory payroll (paid with cash) 150,000 Factory overhead Indirect materials 14,000 Indirect...
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 44,000 $ 54,000 Work in process 9,500 18,800 Finished goods 59,000 34,000 Activities and information for May Raw materials purchases (paid with cash) 185,000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 10,000 Indirect...
Answer the questions below using the following information on a firm:
Answer the questions below using the following information on a firm: Output (Quantity) Total Cost 0 $50 1 60 2 80 3 110 4 150 5 200 6 260 7 330 8 410 What is average total cost at Q=7? What is marginal cost at Q =7? Is this firm operating under increasing or diminishing returns at Q=7? Why? Say this firm is a perfect competitor. If the market price for its product is $ 60, at what output level...
Use the following information to answer questions 12-13 [The following information applies to the questions displayed...
Use the following information to answer questions 12-13 [The following information applies to the questions displayed below.] On May 1, Donovan Company reported the following account balances: Current assets $ 130,000 Buildings & equipment (net) 260,000 Total assets $ 390,000 Liabilities $ 98,500 Common stock 150,000 Retained earnings 141,500 Total liabilities and equities $ 390,000 On May 1, Beasley paid $465,200 in stock (fair value) for all of the assets and liabilities of Donovan, which will cease to exist as...
Use the following information to answer questions 7-11 [The following information applies to the questions displayed...
Use the following information to answer questions 7-11 [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.    April 30 May 31   Inventories      Raw materials $ 33,000   $ 58,000      Work in process 9,600 18,200      Finished goods 59,000 33,400   Activities and information for May      Raw materials purchases (paid with cash) 174,000      Factory payroll (paid with cash) 330,000      Factory overhead         Indirect materials...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT