Using the following information, determine the net operating income (NOI) for the first year of operations of the subject property using above-line" treatment of capital expenditures. Subject Property Number of apartments Market rent (per month) Vacancy and collection losses Operating expenses Capital expenditures O $135,000 $162,000 $137,700 $153,900 15 1000 10% of PGI 5% of EGI 10% of EGI
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- You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below. Property Information: BETTS DISTRIBUTION CENTER Age of Improvement Rentable Space Single Tenant Financial Information: Rent 8 years old 230,000 square feet 10-year lease term, net, net Recoverable Expenses from Tenant Operating Expenses Property Taxes Insurance Other Cash Outlays: Allowances for: Recurring CAPEX/Improve Allowance $7.00 per square feet (7-year term), flat $3.00 per square feet, fixed $775,000 $53,000 $18,000 $67,500 Required: a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI).Calculate the NOI of a property based upon the information provided below: Building area: Average base rents: .NNN recoveries: Vacancy rate: Operating expenses . . • Percentage rent . Concessions . Annual debt service 165,720 O 315,720 O 375.720 440,220 O 478.500 O None of these 15,000 sqft $27.50 psf $4.00 psf 5.0% $4.30 psf $6,000 per year 3.0% $210,000 per yearConsider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year 1. Potential Base Rent Free Rent and Concessions Absorption and Turnover Vacancy Total Rental Revenue Expense Recoveries Total Tenant Revenue Other Revenues Potential gross Revenue Vacancy and Collection Loss Effective Gross Revenue Recoverable Opex Non Recoverable Opex Total Opex Year 1 $750,000 $0 $0 $750,000 $350,000 $1,100,000 $0 $1,100,000 $0 $1,100,000 $350,000 $50,000 $400,000 Net Operating Income $700,000 What would the Year 1 NOI be if there were 3-months of downtime before the tenant's lease began AND the tenant had received 3-months of free base rent during the year? Group of answer choices $237,500 $150,000 $325,000 $425,000
- If a property has an OER of 42% and a net operating income (NOI) of $49,500, what is the EGI? $85,345 $20,790 $28,710 $117,857Larkspur Inc. is constructing a building. Construction began on March 1 and was completed on December 31. Expenditures were $732,000 on March 1, $976,000 on July 1, and $878,400 on December 1. Compute Larkspur's weighted-average accumulated expenditures for interest capitalization purposes. Weighted-Average Accumulated Expenditures %24On April 1, Paine Co. began construction of a small building. Payments of P120,000 were made monthly for four months beginning on April 1. The building was completed and ready for occupancy on August 1. For the purpose of determining the amount of interest cost to be capitalized, calculate the weighted-average accumulated expenditures on the building by completing the schedule below: Date Expenditures Capitalization Period Weighted-Average Expenditures _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____
- Ayayai Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,956,000 on March 1, $1,236,000 on June 1, and $3,077,810 on December 31. Compute Ayayai's weighted-average accumulated expenditures for interest capitalization purposes. Weighted-Average Accumulated Expenditures 24Casio Co. recognizes construction revenue and expenses using the percentage-of-completion method. During 2020, a single long-term project was begun, which continued through 2018 Information on the project follows: 12/31 Accounts Receivable balance Construction expenses for year Gross Profit recognized in year Bangs during year The 12/31/21 CIP balance is Select one O $50,000 Ob 1322,000 O 1619.000 Od $106.000 O $112,000 2020 $100,000 105,000 122,000 100,000 20121 $300.000 192,000 200,000 420.000Which of the following formulas for the capital expenditure on intangibles is correct? Assume the current time (now) is t1 and last year is to, and that 'Intangible assets' is a carrying value net of accumulated amortisation. Select one: a. CapExOnIntangibles(t1) = IntangibleAssets (t1) + IntangibleAssets (t0) + Amortisation ExpenseOnIntanglibles (t1) b. CapExOnIntangibles(t1) = IntangibleAssets (t1) - IntangibleAssets(t0) + Amortisation ExpenseOnIntanglibles(t1) c. CapExOnIntangibles (t1) = IntangibleAssets(t1) - IntangibleAssets(t0) - Amortisation ExpenseOnIntanglibles (t1) d. CapExOnIntangibles(t1) = IntangibleAssets (t1) + AmortisationExpenseOnIntanglibles (t1) e. CapExOnIntangibles (t1) = IntangibleAssets (t1) - Amortisation ExpenseOnIntanglibles (t1)
- Bonita Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,896,000 on March 1, $1,296,000 on June 1, and $3,041,880 on December 31. Compute Bonita's weighted-average accumulated expenditures for interest capitalization purposes. Weighted-average accumulated expenditures $A $48,000 asset was purchased and classified as a Class 10 asset for CCA purposes. If the CCA rate is 30%, calculate UCC for the end of year 3. Select one: a. $15,800 b. $18,300 c. $19,992 d. $17,400 e. $16,660 ???B. An entity provided the following information during the current year:January 1 December 31Fair value of plan assets 6,000,000 9,000,000Projected benefit obligation 4,500,000 5,000,000Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000Asset ceiling 1,000,000 2,500,000Effect of asset ceiling 500,000 1,500,000During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000,and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10% REQUIRED: 6. Compute the employee benefit expense for the current year
