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Question
A company sells an office building that has appreciated in value and subsequently leases the space. Which of the following scenarios represents an impact that sale-leasebacks may have on corporate financial statements?
A) Lower total income will be realized in the year of sale because of capital gains tax
B) Higher taxable income will be realized in the year of sale because of a gain on sale
C) Earnings per share increases because the mortgage has been paid off
D) Higher taxable income will be realized because lease payments cannot be deducted
Answer
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Related questions
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Present Value Factor for Reversion of $1 Period
6%
7%
8%
9%
10% 1
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.564474 A) Between 6% and 7%
B) Between 7% and 8%
C) Between 8% and 9%
D) Between 9% and 10%
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B) Would be greater than the factor given for period (n + 1) at 15%
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Q:
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A) $16,151
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Q:
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A) Cramdown
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A transaction in which a borrower sells a property for less than the current balance of the loan and then provides all of the proceeds to the sale to the lender, typically in full satisfaction of the loan.
A) Prepackaged bankruptcy
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Q:
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Q:
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Q:
Which of the following might impact the density of housing in a land development project?
A) The price paid for the land by the developer
B) The terrain of the land
C) The target market's preferences regarding density
D) All of the above
Q:
The land development industry is best characterized by which of the following statements?
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B) The land development industry is highly fragmented, localized, and extremely competitive
C) Land development and project development are synonymous
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Q:
Consider the feasibility study shown in the table. What is the return on total cost for the proposed project? Total sales revenue
$
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$
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$
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B) Effective gross income
C) Net operating income
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Financing costs are usually paid by the lender to either the borrower/buyer or the seller.
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General industry standards for a conventional loan specify a maximum LTV of 60 percent.