Sam Ltd owns a piece of vacant land in Broadmeadows. A substantial number of factory owners establish their manufacturing plant in this location due to its accessibility and high affordability. The management of Sam Ltd wants to adopt fair value model to measure the land on 30 June 2021. Which of the following information is most useful in assisting management in estimating the fair value of the land? Group of answer choices Sam Ltd intends to lease out the land in the next financial year, and they believe they could receive an annual lease payment of $50,000. A factory owner purchased a piece of vacant land near Broadmeadows for $1m to build a new factory plant on 21 May 2021. The cost to build a new factory on a piece land in Broadmeadows is about $200,000. A landowner sold a piece of vacant land in Southbank to a property developer for $1.05m on 21 May 2021.

Current Attempt in Progress Your answer is partially correct. Vaughn Inc. owns and operates a number of hardware stores in the New England region. Recently, the company has decided to locate another store in a rapidly growing area of Maryland. The company is trying to decide whether to purchase or lease the building and related facilities. Purchase: The company can purchase the site, construct the building, and purchase all store fixtures. The cost would be $1,865,700. An immediate down payment of $415,500 is required, and the remaining $1,450,200 would be paid off over 5 years at $369,000 per year (including interest payments made at end of year). The property is expected to have a useful life of 12 years, and then it will be sold for $508,900. As the owner of the property, the company will have the following out-of-pocket expenses each period. Property taxes (to be paid at the end of each year) Insurance (to be paid at the beginning of each year) Other (primarily maintenance which…

Sarasota Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so, Sarasota has decided to locate a new factory in the Cedar Rapid area. Sarasota will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three buildings: Building A: Purchase for a cash price of $1,540,000, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $124,000 being made at the beginning of the year. Building C: Purchase for $1,952,000 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $18,300. Rental payments will be received at the end of each year. Sarasota Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that Sarasota Inc. locate, assuming a 10% cost of funds? (Round factor values to 5 decimal places,…

Larry’s Lawn Service (LLS) currently offers a single lawn maintenance service that includes cutting grass, trimming shrubs, and removing leafs.  LLS is considering offering an additional lawn care service which will include fertilizing and pest control. LLS hired you to perform a study to determine whether or not LLS should in fact go ahead with the new service.  Your fee to LLS is $10,000 which is due whether LLS makes the investment in the new project or not.  Additionally, if this new lawn care service is implemented, LLS believes that it will actually increase business for its original lawn maintenance service.  You have estimated the dollar value of this benefit to the existing lawn maintenance service to be $20,000/year 33.) For LLS, the $10,000 fee is a:   Question 33 options:   Incremental cash flow   Externality   Sunk cost   Opportunity cost

CHOOSE THE LETTER OF ANSWER Galore Company ventured into construction of a condominium in Makati which is rated as the largest state-of-the art structure. The board of directors decided that instead of selling the condominium, the entity would hold this property for purposes of earning rentals by leasing out space to business executives in the area. The construction of the condominium was completed and the property was placed in service on January 1, 2020. The cost of the condominium was P50,000,000. The useful life of the condominium is 25 years and the residual value is P5,000,000. An independent valuation expert provided the following fair value at each subsequent year-end:December 31, 2020 55,000,000December 31, 2021 53,000,000December 31, 2022 60,000,000 Under the cost model, what amount should be reported as annual depreciation of investment property? a. 1,800,000b. 2,000,000c. 2,200,000d. 0 under the fair Value model, what amount should be recognized as gain from change in fair…

Assume that you are an independent consultant working for Billy plc, a medium-sized construction company primarily engaged in building new residential premises on derelict land in and around towns and cities across England and Wales. Billy plc has always tried to act in a way which minimises the environmental impact of its activities and is conscious of its obligations to local residents who may be adversely affected by its activities. For example, all site work is carried out during weekdays and the company maximises the use of recycled and eco-friendly materials in its construction work.   The directors have become increasingly aware of the importance of their social and environmental responsibilities and they are also aware that Billy plc compares favourably with other companies in the industry. They are interested in how the good reputation of the company can be turned to commercial advantage but they are unsure how to best communicate their activities. They have requested that you…

D3)

Hi, Can you help with the attached questions, thanks kindly.

a buyer purchased a home using a va loan. an appraiser was assigned to estimate the value of the property for the lender. the appraised value was less than the contract price. if the buyer really wants the property which of the following choices is the buyers best option  do nothing because the seller must sell the property at the appraised value Hire an appraiser and see if a second appraisal yields a higher appraised value seek an fha lender who will automatically make up the difference between the contract price and the appraised value make up the difference between the contract price and appraised value in cash

Use the following data on Table 3 to decide should the Company lease or purchase the new production line. The PV of the costs of the purchase decision is $72,450. a. Must not lease the equipment because the cost of lease is $114,155 b. Must lease the equipment because the cost of lease is $69,756 C. Must lease the equipment because the cost of lease is $55,000 d. Must not lease the equipment because the cost of lease is $75,000 Table 3: Annual Payment* Tax rate Rental Period (years) Cost of Borrowing (before tax) Payments are due at the beginning of each year $ 25,000 40% 5 9.50%