As part of the initial investment, Ray Blake contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded. If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $29,000 for the contributed equipment, what amount should be debited to the equipment account? a. $29,000 b. $150,000 c. $125,000 d. $100,000

Suppose the subject's net operating income is $100,000, the direct capitalization rate of the land is 3.5%, the direct capitalization rate of the improvements is 6.0%, and the value of the improvements is $750,000. What is the overall value of the subject property (round to the nearest thousand)? A. $2,321,000 ⒸB. $2,036,000 OC. $1,571,000 OD.$1,286,000

As part of the initial investment, Ray Blake contributes equipment that had originally cost $87,200 and on which accumulated depreciation of $65,400 has been recorded. If similar equipment would cost $166,900 to replace and the partners agree on a valuation of $52,000 for the contributed equipment, what amount should be debited to the equipment account? a.$52,000 b.$39,000 c.$166,900 d.$87,200

Foz Co. is considering four investment proposals (A, B, C, and D). The following table provides data concerning each of these investments:   Compute the missing information pertaining to each investment proposal. (Round your percentage answer to 1 decimal place. Omit the "$" & "%" signs in your response.)         A     B     C     D     Investment cost $ 48,000   $ 30,000   $ 49,000   $       Estimated salvage value   8,000     5,000           2,000     Average estimated net income   5,000           5,600     4,500     Return on average investment     %         24 %        20 %       20 %

A project requires an investment of $800 in a fixed asset that is classified as a five-year asset under MACRS.  The project will have a three-year life.  Find the depreciation for year three.

Assume that you purchase a property for $200,000 and it generates annual cash flows of $30,000 in years 1-3; and $45,000 in years 4&5. You are able to sell it at the end of year 5 for $400,000. Calculate the IRR for this investment property.

Oo.95. Subject :Account