Aproperty was originally purchased for $160,000. the land portion is 25% of total value. if depreciation totals $20,000, what is the value of the property using the cost approach?

Total value of property = $140,000

Explanation:

Provided information we have,

Original cost of property = $160,000

25 % of such property = Land

Note: Depreciation expense is not charged on land, as the asset is not depreciated. Land tends to increase it's value rather than decrease.

Value of land = $160,000 255 = $40,000

Value of remaining property to be depreciated = $160,000 - $40,000

= $120,000

Depreciation for year 1 = $20,000

Value of property except land at end of year 1 = $120,000 - $20,000 = $100,000

Total value of property including land on cost basis = $100,000 + $40,000 = $140,000

Cost basis is the basis in which assets are shown at cost value less depreciation if any.

Here, thus, total value of property = $140,000

previous business sales - c.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23