King Soopers will self-develop the property; construct all on-site and off-site improvements at a cost of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
King Soopers will self-develop the property; construct all on-site and off-site improvements at a cost of $4M; sell Outlots 4 -7; Lot 3 (fuel center) was transferred to the Dillon fuel division at a price of $200K; and retain ownership of Lot 2 (the strip center) as an attached 7,100 sf strip center. Lastly, King Soopers negotiated and received a Tax Incremental Financing Agreement (TIF) with the City of Brighton in the amount of $1.2M. Lastly, the purchasers of Lots 4-7 will reimburse King Soopers $1.4M for on and off-site improvement costs. Assignment: Answer the following questions: 1) What was the purchase price Dillon Companies paid for the property? 2) What was the Document Fee to record the deed? 3) Dillon Companies has to date sold each of the outlots. What was the purchase price for each Lot? FirstBank Confluent Development (Starbucks) Brighton Covenant Group (PacDental) S FCAC (Firestone) S Transfer fuel pad to Kroger Fuel 4) Pertaining to the Lot 2 (strip center): assume rents at $30 psf and a Cap Rate of 7%, what is the market value of the strip center? 5) What was the total capital invested in the development? 6) Evaluate this real estate development in terms of capital invested, the sales of all the outlots, the market value of Lot 2 (strip center), site improvements reimbursements and the TIF. Keep this simple - show as a simple cash flow sheet. Lots Sold: FirstBank: S Starbucks: PacDental: Firestone: Kroger Fuel: Total of Lots Sold: 3) Dillon Companies has to date sold each of the outlots. What was the purchase price for each Lot? FirstBank Confluent Development (Starbucks) Brighton Covenant Group (PacDental) $ FCAC (Firestone) $ Transfer fuel pad to Kroger Fuel 4) Pertaining to the Lot 2 (strip center): assume rents at $30 psf and a Cap Rate of 7%, what is the market value of the strip center? 5) What was the total capital invested in the development? 6) Evaluate this real estate development in terms of capital invested, the sales of all the outlots, the market value of Lot 2 (strip center), site improvements reimbursements and the TIF. Keep this simple - show as a simple cash flow sheet. Lots Sold: FirstBank: Starbucks: PacDental: Firestone: Kroger Fuel: Total of Lots Sold: Market Value of Strip Center: On and Off-Site reimbursements: S TIF: Total Gross Value (in Dollars): Capital Invested: Land Purchase: On and Off-site Improvements: Total Capital Invested: Real Estate Value Realized: King Soopers will self-develop the property; construct all on-site and off-site improvements at a cost of $4M; sell Outlots 4 -7; Lot 3 (fuel center) was transferred to the Dillon fuel division at a price of $200K; and retain ownership of Lot 2 (the strip center) as an attached 7,100 sf strip center. Lastly, King Soopers negotiated and received a Tax Incremental Financing Agreement (TIF) with the City of Brighton in the amount of $1.2M. Lastly, the purchasers of Lots 4-7 will reimburse King Soopers $1.4M for on and off-site improvement costs. Assignment: Answer the following questions: 1) What was the purchase price Dillon Companies paid for the property? 2) What was the Document Fee to record the deed? 3) Dillon Companies has to date sold each of the outlots. What was the purchase price for each Lot? FirstBank Confluent Development (Starbucks) Brighton Covenant Group (PacDental) S FCAC (Firestone) S Transfer fuel pad to Kroger Fuel 4) Pertaining to the Lot 2 (strip center): assume rents at $30 psf and a Cap Rate of 7%, what is the market value of the strip center? 5) What was the total capital invested in the development? 6) Evaluate this real estate development in terms of capital invested, the sales of all the outlots, the market value of Lot 2 (strip center), site improvements reimbursements and the TIF. Keep this simple - show as a simple cash flow sheet. Lots Sold: FirstBank: S Starbucks: PacDental: Firestone: Kroger Fuel: Total of Lots Sold: 3) Dillon Companies has to date sold each of the outlots. What was the purchase price for each Lot? FirstBank Confluent Development (Starbucks) Brighton Covenant Group (PacDental) $ FCAC (Firestone) $ Transfer fuel pad to Kroger Fuel 4) Pertaining to the Lot 2 (strip center): assume rents at $30 psf and a Cap Rate of 7%, what is the market value of the strip center? 5) What was the total capital invested in the development? 6) Evaluate this real estate development in terms of capital invested, the sales of all the outlots, the market value of Lot 2 (strip center), site improvements reimbursements and the TIF. Keep this simple - show as a simple cash flow sheet. Lots Sold: FirstBank: Starbucks: PacDental: Firestone: Kroger Fuel: Total of Lots Sold: Market Value of Strip Center: On and Off-Site reimbursements: S TIF: Total Gross Value (in Dollars): Capital Invested: Land Purchase: On and Off-site Improvements: Total Capital Invested: Real Estate Value Realized:
Expert Answer:
Answer rating: 100% (QA)
1 The purchase price Dillon Companies paid for the property was5000000 2 The Document Fee to record ... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
Students also viewed these accounting questions
-
Orange, Inc. purchased a building, having a fair value of $600,000 on February 1, 2025 by signing a 4-year, zero-interest bearing note with a face amount of $437,000. What would Orange record on...
-
A capital asset (equipment) with a fair value of $1,500,000 and a remaining useful life of ten years and land with a fair value of $2,000,000 is donated to a not-for-profit organization. The...
-
Peters Company leased a machine from Johnson Corporation on January 1, 2021. The machine has a fair value of $22,000,000. The lease agreement calls for five equal payments at the end of each year in...
-
What did Frederick Taylor, the proponent of scientific management, advocate for to achieve efficiency in manufacturing?
-
A friend who has lakefront property and cherishes her lush green lawn complains of the green foul-smelling scum on the lake each summer. Explain how her lawn might be contributing to the problem.
-
Your physics textbook is sliding across the table. Describe a situation. For each problem, identify all the forces acting on the object and draw a free-body diagram of the object.
-
On June 14, 1988, Thomas John Heck Jr. executed a note promising to pay Paul D. Heck \($51,000\) at 7 percent interest compounded annually. The note contains the following payment terms: Perpetual 90...
-
Comparison of alternative joint-cost-allocation methods, further-processing decision, chocolate products. The Chocolate Factory manufactures and distributes chocolate products. It purchases cocoa...
-
(a) Find the local extrema and saddle points of the function (x,y) = + -2y-xy+y+1 (b) Use Taylor's approximation around the point (x,y)=(0,0) to obtain an approximation of the above function up to...
-
Cindy Jefferson, hospital administrator at Anderson Hospital must appoint head nurses to four newly established departments: urology, cardiology, orthopedics, and pediatrics. Believing in the...
-
QUESTION 6 (16 marks) Tiger Limited was incorporated on January 1, 2017. The authorized share capital of the corporation was 100,000 shares of $10 par value ordinary shares and 20,000 shares of $50...
-
The net operating income of an investment property is $330,000. A comparable company recently sold for $1 million. It has a net operating income of $200,000. What is the capitalization rate for the...
-
What is the accumulated value of $700 invested for 15 years at 2.5% p.a. compounded (a) annually? (b) semi-annually? (c) quarterly? (d) monthly? (a) The accumulated value is $ (Round the final answer...
-
List at least two accounting software used in the industry. Describe five (5) characteristics and features of an accounting software of your choice that are utilised in the creation and oversight of...
-
The Brigham & Houston portion (Part 2) of the custom text says, "Companies raise capital in two main forms: debt and equity" . What equation from your accounting course captures the essence of this...
-
A discussion of how the 'hybrid' National Oil Companies combine elements of both the National Oil Companies and International Oil Companies strategies do fast and need correct answer with good...
-
Explain the workplace environment and culture, using processes such as confidential staff surveys. Best Practice: Regularly monitor strategies to prevent discrimination and harassment to ensure they...
-
Consider the reaction of acetic acid in water CH 3 CO 2 H(aq) + H 2 O(l) CH3CO 22 (aq) + H 3 O + (aq) where Ka 5 1.8 3 1025. a. Which two bases are competing for the proton? b. Which is the stronger...
-
The following is an alphabetical list of all of White Limnology Companys adjusted trial balance accounts as of December 31, 2016: Accounts Payable Accounts Receivable Accrued Pension Cost Accumulated...
-
Gray Companys financial statements showed income before income taxes of $4,030,000 for the year ended December 31, 2017, and $3,330,000 for the year ended December 31, 2016. Additional information is...
-
What are the four required disclosures a corporation must make regarding its provision for income taxes and effective tax rate?
-
Stadler Corporations federal income tax rate is 34 percent. It reports $100,000 depreciation expense on its financial statements and deducts $140,000 depreciation expense on its tax return. How...
-
Which of the following items is not deductible? a. Dues for club used solely for business meetings b. Directly related business entertainment c. Business gift of less than $25 in value d. Dues for...
-
John is a teacher at a local high school. During 2017, he travels three days per week to a school in the next county to work with gifted children in an after-school program that does not end until...
Study smarter with the SolutionInn App