A flooring contractor was asked for a rough estimate of the cost of replacing the entire...
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A flooring contractor was asked for a rough estimate of the cost of replacing the entire floor covering in a 9,000-sq.-ft. building. The contractor stated that the building's flooring is 76% carpet, 14% vinyl, and 10% hard-surface tile. The hard-surface tile costs about $7.25 per square foot. The vinyl costs 50% of the price of the tile, and the carpets cost 35% of the price of the tile. What is the total cost of replacing the floor covering? A comparable property sold for $329,000 with no concessions. The site value (VL) was estimated at $35,000, and the site improvements (VSI) have a contributory value of $7,000. The cost to construct the building was $340,000. What is the percentage of depreciation for the building? An office building has four 16-ton air conditioning units costing $22,000 each. However, the AC contractors all say that four 12-ton units that cost only $14,000 each would suffice. The units were designed to cool a now-bankrupt company that was heavily reliant on large computers, which caused excess heat. The units are eight years old and have a 14-year economic life. What is the functional obsolescence if there are no excess operating costs? A flooring contractor was asked for a rough estimate of the cost of replacing the entire floor covering in a 9,000-sq.-ft. building. The contractor stated that the building's flooring is 76% carpet, 14% vinyl, and 10% hard-surface tile. The hard-surface tile costs about $7.25 per square foot. The vinyl costs 50% of the price of the tile, and the carpets cost 35% of the price of the tile. What is the total cost of replacing the floor covering? A comparable property sold for $329,000 with no concessions. The site value (VL) was estimated at $35,000, and the site improvements (VSI) have a contributory value of $7,000. The cost to construct the building was $340,000. What is the percentage of depreciation for the building? An office building has four 16-ton air conditioning units costing $22,000 each. However, the AC contractors all say that four 12-ton units that cost only $14,000 each would suffice. The units were designed to cool a now-bankrupt company that was heavily reliant on large computers, which caused excess heat. The units are eight years old and have a 14-year economic life. What is the functional obsolescence if there are no excess operating costs?
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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