## [answered] 1. A property that produces an annual NOI of \$100,000 was p

I want full detailed explanation of attached questions which formula to be used and explanation with details, Real Estate Finance And Investment Chapter 11, thanks.

1. A property that produces an annual NOI of \$100,000 was purchased for \$1,200,000. Debt

service for the year was \$95,000 of which \$93,400 was interest and the remainder was

principal. Annual depreciation is \$38,095. What is the taxable income? (C)

(A) \$5,000

(B) \$6,600

(C) - \$31,495

(D) - \$33,095

2. An investor who has \$75,000 in taxable income purchases a building that produces another

\$15,000 in taxable income. According to the table below, what is the marginal tax rate? (D)

Taxable Income

\$0 - \$34,000

\$34,001 - \$82,150

Over \$82,150 Marginal Tax Rate

15%

28%

31% (A) 29.50%

(B) 29.57%

(C) 28.00%

(D) 31.00%

3. A small office building is purchased of \$1,200,000 with a balloon mortgage that is due at the

end of year 10. Payments are based on a 25 year amortization period. If one point was

charged, what annual amount can be deducted for tax purposes? (A)

(A) \$1,200

(B) \$480

(C) \$0

(D) \$800

4. The adjusted basis can be defined as: (A)

(A) Original cost + capital improvements - accumulated depreciation

(B) Sales price - mortgage balance - sales costs

(C) Sales price - accumulated depreciation

(D) Original cost - mortgage balance - sales costs -1-

Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 18, 2020

Solution~0001001220.zip (25.37 KB)

Buy this answer for only: \$15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

### Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.