Assume the verification of Peterson’s accounting did not result in enough loan value to avoid needing title to the vacant land and that the lien release was critical for the loan to proceed. Using the materials provided to you in the attached library (assume that the applicable precedent is from the fictional jurisdiction of the state of Green provided to you in the attached library), please address all elements of Ms. Ivy’s negligence cause of action against Bank of Land. Assume Bank of Land is liable for its employees’ actions.
 

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CARSON'S INN INCOME STATEMENT For the years ended December 31, 2004 2002 2003 Rental Revenue Other Revenues (note 1) Total Revenues $892,513 212,432 $1,104,945 $796,500 183,195 $979,695 $759,656 171,923 $931,579 411,472 $568,223 97,970 254,721 419,211 $512,368 93,158 Cost of Revenue (note 2) 441,978 . $662,967 110,495.- 287,286 $265,187 Gross Profit Marketing General and Administrative (note 3) Operating Income 242,211 $215,533 $177,000 Notes to Income Statement Note 1: Other Revenues Other revenues consist of charges to quests for charges for other goods and services. Note 2: Cost of Revenue Cost of revenue includes all payroll related costs of employees; depreciation on the property, improvements, and furniture; linen service charges; utilities; and bed taxes. Depreciation in cost of revenue Building (40 year life, Straight line) Property Improvements (various) Furniture (5 year life, Straight line) 2004 2003 2002 $50,000 72,000 88,000 $50,000 68,500 $50,000 65,000 82,000 82,000 Note 3: General and Administrative Expenses General and administrative expenses do not include a salary for S. Rivera, the owner of the hotel, since this is a sole proprietorship and not a corporation. Ms. Rivera took drawings of $75,000 in 2004; $72,000 in 2003; and $70,000 in 2002 in addition to the expenses listed above. These amounts approximate what a manager would be paid. General and administrative expenses also include depreciation on equipment of $22,000 in 2004; $23,000 in 2003, and $27,000 in 2002. 3. CARSON'S INN INCOME STATEMENT For the years ended December 31, 2004 2002 2003 Rental Revenue Other Revenues (note 1) Total Revenues $892,513 212,432 $1,104,945 $796,500 183,195 $979,695 $759,656 171,923 $931,579 411,472 $568,223 97,970 254,721 419,211 $512,368 93,158 Cost of Revenue (note 2) 441,978 . $662,967 110,495.- 287,286 $265,187 Gross Profit Marketing General and Administrative (note 3) Operating Income 242,211 $215,533 $177,000 Notes to Income Statement Note 1: Other Revenues Other revenues consist of charges to quests for charges for other goods and services. Note 2: Cost of Revenue Cost of revenue includes all payroll related costs of employees; depreciation on the property, improvements, and furniture; linen service charges; utilities; and bed taxes. Depreciation in cost of revenue Building (40 year life, Straight line) Property Improvements (various) Furniture (5 year life, Straight line) 2004 2003 2002 $50,000 72,000 88,000 $50,000 68,500 $50,000 65,000 82,000 82,000 Note 3: General and Administrative Expenses General and administrative expenses do not include a salary for S. Rivera, the owner of the hotel, since this is a sole proprietorship and not a corporation. Ms. Rivera took drawings of $75,000 in 2004; $72,000 in 2003; and $70,000 in 2002 in addition to the expenses listed above. These amounts approximate what a manager would be paid. General and administrative expenses also include depreciation on equipment of $22,000 in 2004; $23,000 in 2003, and $27,000 in 2002. 3.

Answer rating: 100% (QA)

Four times the typical gross From the given table Gross profit of 2004 662967 Gross profit of 2003 5... View the full answer