Question

In: Finance

Given the following sales adjustment grid, what adjustment would be made for size? ( Please show...

Given the following sales adjustment grid, what adjustment would be made for size? ( Please show all your work)

Characteristics

Subject

Comparable 1

Comparable 2

Comparable 3

Comparable 4

Sales Price

116,000

120,000

124,000

126,000

Square feet

1800

1700

1900

1900

1900

Exterior

Alum

Brick

Alum

Alum

Brick

Age

16

20

20

18

20

Solutions

Expert Solution

Please find below the original problem statement and solutions for the same

Explanations for the each step follows:

Step1:

Taking Comparables 1 and 4,Brick exterior and same age we have sale price for 1700 and 1900 sqft,we find out the sale price for 1800 sqft by taking average of 116000 and 126000 which is 121000 (average of 1700 and 1900 is 1800)

Step2

Taking comparables 2 and 4,all are same except the material

sale price difference is 6000 between brick and alum for an area of 1900 sqft

per sqft sale price difference is (6000/1900)

we have to find 1800 sqft,for 1800 sqft difference will be = (6000/1900)*1800= 5684.21 in sale price(alum will be less than brick)

hence 1800 sqft alum made with age 20 sale price would be= 121000-5684.21= 115316

Step3

all being same only age difference between alum made (less age is costlier) but for 1900 sqft

taking comparable 2 and 3 with all alum made and same area there is a difference of 4000 for 2 years age difference

for 1900 sqft sale price difference is 4000( 124000-12000)

for 1 sqft price difference will be (4000/1900)

for 1800 sqft price difference would be (4000/1900)*1800= 3789.47 for two years(20-18)

here subject product is another two years younger(18-16),price will go up similarly = 3789.47

Final price of the subject would be = 115315+3789=119105 (ignoring the decimels)

Please note that all costing has to come to the per sqft basis and per year basis

Hope the answer helps,thanks.


Related Solutions

What adjustment must be made at the end of the accounting period for trading investments and...
What adjustment must be made at the end of the accounting period for trading investments and available-for-sale investments ?
Please show work by hand thank you 2 alternatives for an off-grid energy system are being...
Please show work by hand thank you 2 alternatives for an off-grid energy system are being compared by a company building a house in New Mexico (From Providers A and B). Alternative A is a solar energy system that has a life of 8 years, the first cost of $18,000, annual energy cost savings (can be treated as revenue in this cash flow) of $2600, and a salvage value after 8 years of $9000. Alternative B is a wind energy...
1. Utilizing the sample size chart, what would be the minimum sample size for the following...
1. Utilizing the sample size chart, what would be the minimum sample size for the following situations? a. one sample test              ES = .8,*a = .05/2, 1- B = .90 b. two sample test (independent)   ES = .8, *a = .01, 1- B = .80 c. two sample test (independent)    ES = .2, *a = .05/2, 1- B = .95 d. one sample test      ES = .5, *a = .01, 1- B = .80 e. two sample test       ES =...
Please show me how to do the following in excel. An additional "show formulas" would also...
Please show me how to do the following in excel. An additional "show formulas" would also be helpful. NOK Plastics is considering the acquisition of a new plastic injection-molding machine to make a line of plastic fittings. The cost of the machine and dies is $125,000. Shipping and installation is another $8,000. NOK estimates that new project will require $7,500 in inventory, and result in a $7,500 increase in accounts receivable and a $5,000 increase in accounts payable. The latter...
Earlier expert noted no sample size given, would the 60 months not be the sample size?...
Earlier expert noted no sample size given, would the 60 months not be the sample size? Monthly profits (in million dollars) of two phone companies were collected from the past five years (60 months) and some statistics are given in the following table. Company Mean SD Rogers $123.7 $25.5 Bell $242.7 $15.4 (a) (2 pts) Find a point estimate for the difference in the average monthly profits of these two phone companies. (b) (2 pts) What is the margin of...
(Please show all work)      1.The following assumptions are made: The purchase price is $1,100,000. Potential...
(Please show all work)      1.The following assumptions are made: The purchase price is $1,100,000. Potential gross income (PGI) for the first year of operations is projected to be $171,000. PGI is expected to increase at 4 percent peryear. No vacancies areexpected. Operating expenses are estimated at 35 % of effective gross income. Ignore capital expenditures. The market value of the investment is expected to increase 4 percent peryear. Selling expenses will be 4 percent. The holding period is 4...
Given the following trail Balance and adjustment data for the A Ltd , Your task is...
Given the following trail Balance and adjustment data for the A Ltd , Your task is prepare a work-sheet for the month of November, the first month of operations in a new fiscal year. The A Ltd Trial Balance November 30, 2021 Dr Cr Cash 381300 Accounts Receivable 282000 Prepaid Rent 85000 Painting Supplies 92100 Studio Equipment 598500 Accumulated Depreciation , Studio Equipment 199500 Accounts payable 178800 A Ltd , Capital 582800 Painting Revenue 781600 Advertising Expense 51000 Utilities Expense...
Q2)What would be the maximum aggregate size used for the given mixture properties by using ACI...
Q2)What would be the maximum aggregate size used for the given mixture properties by using ACI Method of Mix Design. 28-day specified concrete strength is 12 Mpa, standard deviation is choosen as 3.7Mpa and it is required that no more than 1 test result in 200 will fall below the specified strength. Project Title:Detoration of wood column of a commercial building Project summary:Wood deterioration at the lower level of a heavy timber column, which supports five floor levels, was remedied...
Which of the following would not be an adjustment to net income using the indirect method?...
Which of the following would not be an adjustment to net income using the indirect method? Depreciation Expense An increase in Prepaid Insurance Amortization Expense An increase in Land
+++ Show excel formulas please +++ Marvel Company has the following budgeted sales for the selected...
+++ Show excel formulas please +++ Marvel Company has the following budgeted sales for the selected four-month period: Month                                  Unit Sales October                                40,000 November                          70,000 December                           50,000 January                                 60,000 There were 14,000 units of finished goods in inventory at the beginning of October. Plans are to have an inventory of finished product equal to 25 percent of the unit sales for the next month. Five pounds of a single raw material are required for each...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT