P Flag question Which of the following Debt Coverage Ratios (DCR) would provide the greatest negative gearing in a property investment? Select one: O a. 0.9 O b. 1.1 Oc. 0.8 O d. 1.2 O e. 1 Next page Previous page Which one of the following statements about REITs is correct? Select one: O a. All of the answers here O b. REITs can provide access to diversification across property type O c. REITs are investment vehicles similar to managed funds. O d. REIT investment is available to both small and institutional investors. O e. REITs provide the protection of limited liability Previous page A commercial property which cost $33,488,000 is considered to have 45% of its total value attributable to land. Plant and equipment represents 8% of cost. The building depreciation allowance is 2.5% and the investor's marginal tax rate is 37%. What is the reduction in tax liability (depreciation tax shield) attributable to the building allowance for this property? Select one: O a. $295,040 O b. $277,247 O c. $182,970 O d. $145,589 O e. $226,604 Next page Previous page