Garrett Company purchased land by paying $28,000 cash and finance the rest of the purchase price with an installment loan from a bank. Garrett agreed to pay the bank $28,000 for each of the next eight years beginning one year from the purchase date. The interest rate on the loan is 8%. The cost of the land recorded by Garrett on the purchase date is

Short Company purchased land by paying $11,000 cash on the purchase date and agreed to pay $11,000 for each of the next six years beginning one-year from the purchase date. Short's incremental borrowing rate is 7%. The land reported on the balance sheet is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Cholce $77,000. $63.432. $66,000. $43,979.

We acquired a property for $10,000,000 including all fees. We financed its purchase with a $7,000,000 loan that carried an annual interest rate of 5.2%, an amortization period of 25 years and a 5-year term. NOI for year 1 was $1,200,000; year 2 was $1,300,000, and for year 3 NOI was $1,400,000. All cash flow after debt service was paid to the equity investors as distributions at the end of every year. We sold this property at the end of year 3 for $11,000,000 net of all disposition fees. Identify the pre-tax annual cash flows to the equity investors and determine the pre-tax IRR to the equity investors for this investment.

On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P 3,000,000. Fairness received a three year non-interest bearing note for P 6,000,000 in exchange for the land, but the current market rate of interest for comparable notes is 10%. The note is payable in equal annual instalments of P 2,000,000 every December 31 starting December 31, 20x9.  a. Compute for the carrying value of the note on January 1, 20x9b. Compute for the gain or loss on salec. Compute for the interest income recognized in 20x11.d. Compute for the carrying value of the note in December 31, 20x10e. Prepare all entries.