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Management has estimated that the real estate can be sold in 5 years for the following possible prices

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I have decided to invest in a piece of real estate. Management has estimated that the real estate can be sold in 5 years for the following possible prices:

Price Probability
$20,000 0.20
$25,000 0.25
$30,000 0.30
$35,000 0.25

What is the expected sales price for the real estate?

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Solution Preview

= Sum of the Product of Price and Probability
= (20000*.2)+(25000*.25)+(30000*.3)+(35000*.25)

*** ...

Solution Summary

Brief calculation show how to find the sum of the product of price and probability in order to find the expected sales price for given real estate.

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Equipment was purchased for $100,000 and has a book value of $44,000 and a depreciable cost of $76,000. The estimated salvage value is

I need the correct answers for the practice exam to check my answers. This will help me study for the exam next week. See attachment for the practice exam.


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3. Notes or accounts receivables that result from sales transactions are often called
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7. Two bases for estimating uncollectible accounts are:
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8. A company purchased land for $80,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be recorded at
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11. On October 1, 2003, Nance Company places a new asset into service. The cost of the asset is $20,000 with an estimated 5-year life and $5,000 salvage value at the end of its useful life. What is the depreciation expense for 2003 if Nance Company uses the straight-line method of depreciation?
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13. A current liability is a debt that can reasonably expected to be paid
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14. From a liquidity standpoint, it is most desirable for a company to have current
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