Question - Comerical Property
Leasable Space= 300,000 Sq Ft Cap Expenditures= 20% of EgI
Average Annual Rent = 17.00/sq ft LTV= 80%
Average Annual Growth= 2.5%/year Loan Intrest Rate = 6%
V&C Losses = 8% of PGI Amortization= 30 yrs
Operating Expenses = 35% of EGI % Bldg/Total Value= 75%
Miscellaneous Income= $1.50/sq ft Coprate Tax rate= 30%
MI Annual Growth= 2% /year Cap gains Tax Rate=15%
Going-Out Cap Rate = 10.5% Accum Dep Tax Rate = 25%
Discount Rate = 10% Years of ownership=5 Years
Selling expenses= 6% Purchase Price= $22.5M
What are the Taxes Due at the end of the second year?
A. $475,842
B. $579,405
C. $336,965
D. $367,549