In some commercial property operating agreements, investors are scheduled to receive their “pro rata” share of all cash flow distributions. Based on your understanding of what is meant by a “pro rata” distribution, an investor that contributed 1/10 of the required equity investment would be entitled to receive what proportion of all future cash flows?
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In some commercial property operating agreements, investors are scheduled to receive their “pro rata” share of all cash flow distributions. Based on your understanding of what is meant by a “pro rata” distribution, an investor that contributed 1/10 of the required equity investment would be entitled to receive what proportion of all future cash flows?
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- Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: How much interest income is to be recognized on December 31, 2020?The best evidence of fair value for an investment property is price in a binding sale agreement fair value determined on the basis of observable data current price in an active market. management’s estimate of future cash flows multiplied by a discount rate1. Assuming the investment is appropriately recognized as financial assets at amortized cost: What is the carrying value of the investment on December 31, 2020? 2. Assuming the investment is appropriately recognized as financial assets at amortized cost: Determine the gain or (loss) to be recorded upon the sale of the investment. 3. Assuming the investment is appropriately recognized as financial assets at amortized cost: How much interest income is to be recognized in 2021?
- Where the payment of an investment property is deferred beyondnormal credit terms, how should the entity account for anyadditional payment above the cash cost of the asset?14. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: Determine the initial valuation of the investment. 15. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: How much interest income is to be recognized on December 31, 2020? 16. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: How much is the interest receivable to be recognized on December 31, 2020?When a property dividend is declared and the book value of the property exceeds its market value, the dividend is recorded at the O Book value of the property at the date of distribution if it still exceeds the market value of the property at the date of declaration. O Market value of the property at the date distribution. O Book value of the property at the date of declaration. O Market value of the property at the date of declaration.
- The amount due from or at the direction of the grantor is accounted for by the operator from the contract that is in the form of Financial asset as:fair value through other comprehensive incomeamortized costany of thesefair value through profit or lossBe able to calculate outside basis (or sometimes called Partner Basis) on contribution. “Basis given is Basis Received” How is cash treated? How is property treated, especially if there is property with a gain contributed? How is property that is encumbered with debt dealt with in outside basis calculations?Match term to the correct definition. The balance on which interest is paid. Interest paid both on the original investment and on all interest that has been added to the original investment. An investment that gives you a share of ownership in a company. An investment that represents a promise of future cash. Usually issued by either a government or a corporation. The issuer pays you back your initial investment as well as simple interest earned on that investment.…
- Which of the following is an indirect investment? a) Joint venture b) Property loan c) REIT d) Asset purchase Please ensure accuracy and explain your choiceFor an investment to be classified as a current asset,a. the investment must be easily convertible to cash.b. the investor must intend to convert the investment to cash within one year or currentoperating cycle, whichever is longer, or use it to pay a current liability.c. both a and b must be met for the investment to be classified as a current asset.d. neither a nor b are relevant to the classification of an investment as a current asset.In 2020, which of the following types of business or investment property is eligible for like-kind exchange? Group of answer choices 1.Machinery & Equipment 2.Inventory held for sale 3.Rental real estate 4. Securities