Scribd
Upload
139 views2 pages

PROBLEM 12-10 ANSWER: C. 1,800,000 Solution

This document contains solutions to 15 problems from Chapter 12. It calculates rental revenues, average annual rent, rent receivable, net rent income, and amortization of lease costs over multiple years for different rental properties. It provides the answers and step-by-step workings for each problem.

Uploaded by

Jessica Cabanting Ong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
139 views2 pages

PROBLEM 12-10 ANSWER: C. 1,800,000 Solution

This document contains solutions to 15 problems from Chapter 12. It calculates rental revenues, average annual rent, rent receivable, net rent income, and amortization of lease costs over multiple years for different rental properties. It provides the answers and step-by-step workings for each problem.

Uploaded by

Jessica Cabanting Ong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Chapter 12

PROBLEM 12-10
ANSWER: C. 1,800,000
SOLUTION
First Year (1,200x1,000) 1,200,000
Second Year (3,000x1,000) 3,000,000
Third Year (3,000x1,000) 3,000,000
Total Rental Revenue 2,200,000

Average annual Rental (7,200,000/3) 2,400,000

Rental Rev. From January 1 to Sept.30 (2.4Mx9/12) 1,800,000

PROBLEM 12-11
ANSWER: C. 1,080,000
SOLUTION
First Year (800,000x6/12) 400,000
Second Year 1,250,000
Third Year 1,250,000
Fourth Year 1,250,000
Fifth Year 1,250,000
Total Rental Revenue 5,400,000

Average annual Revenue (5,400,000/5) 1,080,000

PROBLEM 12-12
ANSWER: B.1,200,000
SOLUTION
2020 (100,000X12) 1,200,000
2021 (150,000X12) 1,800,000
2022 (200,000X12) 2,400,000
2023 (250,000X12) 3,000,000
Total Rent over the Lease Term 8,400,000

Average annual Rental (8,400,000/4) 2,100,000

Rent Income for 2020 & 2021 (2,100,000x2) 4,200,000


Rent collected in 2020 and 2021 (1,200,000+1,800,000) (3,000,000)
Rent receivable 1,200,000

PROBLEM 12-13
ANSWER: B.800,000
SOLUTION
Average annual Rental (7,000,000/5) 1,400,000

Rent Income for 2020 & 2021 (1,400,000x2) 2,800,000


Rent collected in 2020 and 2021 (1,000,000+1,000,000) (2,000,000)
Rent receivable 12/31/2021 800,000

PROBLEM 12-14
ANSWER: A. 275,000
SOLUTION
Rent Income 500,000
Less: Amortization of initial direct costs 15,000
(150,000/10)
Depreciation 120,000
Insurance and Property Tax 90,000 225,000
Net rent Income 275,000

PROBLEM 12-15
ANSWER: C.1,000,000
SOLUTION
Annual rental 900,000
Amortization of lease bonus (500,000/5) 100,000
Total Rent Revenue 1,000,000

PROBLEM 12-21
1. D
2. D
3. A
4. D
5. D

Problem 12-22
1. C
2. B
3. D
4. A
5. C

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy