Question
Last week, you closed the deal and purchased land and a building for $6 million.Other expenses incurred in connection to this purchase included: Attorney fees
Last week, you closed the deal and purchased land and a building for $6 million.Other expenses incurred in connection to this purchase included:
Attorney fees for the contract $10,000
Commissions 55,000
Title insurance 8,500
Pro-rated Property taxes 75,000
An independent appraisal was requested to determine the individual fair value estimates.The land appraised at $5.5 million and the building at $1.9 million.
Spending on the property started right away.Janson installed fences and completed the driveway at a cost of $45,000 and $75,000, respectively.
- What is the initial valuation of each asset Janson purchased in these transactions?
- Suppose Janson, immediately after acquiring the property, decided to tear down the building. The cost of the removal of the building was $350,000 and salvaged materials sold for $8,000.An additional $100,000 was paid to grade the land for building the new fitness center. What is the initial valuation of each asset Janson acquired in this transaction?
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
978-1133525097, 1133525091, 1111827028, 978-1133110316, 1133110312, 978-1111827021
