What is the compounded annual return on an office building
investment originally purchased for $5,000,000, seven...
What is the compounded annual return on an office building
investment originally purchased for $5,000,000, seven years ago
which has an annual net income of $400,000 each year and can be
sold now for $5,500,000?
On June 24, 20Y9, a building was sold for $225,000 cash. The
building was originally purchased in 20Y1 for $210,000. To date, it
had accumulated depreciation of $20,000. Which of the following is
true on the date of disposition?
A.A gain on sale of $35,000 should be recorded.
B.The building had a net book value of $205,000.
C.The building had a fair market value of $190,000.
D.The building had a net book value of $225,000
Rick, a wealthy investment banker, purchased an office building
and underlying land (the property) for $10 million, borrowing the
entire purchase price from the First Texas Savings and Loan. The
loan is nonrecourse, secured by the property, and constitutes
“qualified nonrecourse financing” under §465(b)(6). Principal and
interest on the note are payable over 20 years. Rick did not invest
any of his own money and did not devote any of his time to managing
the office building (he hired a...
Holding period and annual (investment) returns. Baker Baseball
Cards, Inc. originally purchased the rookie card of Hammerin' Hank
Aaron for $ 35.00. After holding the card for 55 years, Baker
Baseball Cards auctioned the card for $180.00
What are the holding period return and the simple annual return
on this investment?
What is the holding period return of the baseball card? nothing%
(Round to two decimal places.)
What is the simple annual return on the baseball card? nothing%
(Round to...
Entity A purchased a property (Land and Building) for $5,000,000
on 1 July 2017. Entity A paid 60% by a cheque on 1 July 2017 and
the balance was settled on 1 August 2017 through a bank transfer.
The value of the land was $500,000 and the buildings $4,500,000.
The expected useful life of the building is 50 years without any
residual value.
On 30 June 2019, the property was revalued to $7,562,208 (land
$980,208 and buildings $6,582,000).
On 30...
holding period and annual(investment returns. Baker
Baseball Cards, inc. originally purchased the rookie card of
Hammerin ' Hank Aaron for $32.00. After holding the card for 6
years, Baker Baseball Cards auctioned the card for $256.00. what
are the holding period return and the simple annual return on this
investment? what is the effective annual return (EAR) on the
baseball card?
Your firm has an obligation to pay a parts supplier
seven equal annual payments of $5,000,000 (the first payment is due
1 year from today). Assume the Treasury yield curve is a flat
4.00%, and today your firm purchases zero-coupon Treasury bonds to
fund and immunize the obligation. All bonds that your firm
purchases have the same maturity. Rounded to the nearest dollar,
what is the total face value of the bonds your firm
buys? Hint: remember you the first steps...
You are the owner of a 65,000 square foot office building. You
purchased the building five years ago for $11,500,000. During that
entire time the building was triple net leased to a tenant who was
also responsible for all maitenance and capital upkeep. The net
rent the tenant paid was flat at $12.50 per square foot per year.
You have just negotiated a lease extension which will raise the
rent to $14.00 per square foot for the next 10 years....
What is the annual rate of return on an investment if you lend
$30,000 and are repaid $40,000 five years later? (Round final
answer to 2 decimal places. Omit the "%" sign in your
response.)
Suppose you currently have $100 and plan to purchase a 2-year
certificate of deposit (CD) that pays 5% interest, compounded
semi-annually. How much will you have when the CD matures? (Round
final answer to 2 decimal places. Omit the "$" sign in your
response.)
A...
An office building for use in the business. It was purchased on
15 June CY at a cost of $770,000. Construction had commenced on 1
March 1987 at a cost of $300,000.
Calculate the Division 43 deductions which are available to the
taxpayer.
CY is current year