Ivanhoe Flight Academy acquired a new site for its training operations. The company was able to find a small unused airport with an updated runway and hangar that could be used to accommodate a flight simulator, small aircraft, and classrooms. The location was ideal as it was close to the city centre with a large population base from which to attract students. Ivanhoe paid $6.50 million to acquire the site. Prior to providing financing for the purchase, the bank required that an appraisal be completed of the property. The evaluation appraisal report came back with the following estimated market values: land $3,369,060, building $2,433,210, and land improvements $436,730. Ivanhoe management explained, to the bank's satisfaction, that it paid the $261,000 premium because of the property's proximity to the city centre and access to a large population base from which to draw students. (a1) Allocate the $6.50-million purchase price to the land, building, and land improvements. Allocated cost Land $ Building $ Land improvements $
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This is done by adding the appraised values of the land, building, and land improvements together. $3,369,060 (land) + $2,433,210 (building) + $436,730 (land improvements) = $6,239,000 Show more…
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Carla Vista Flight Academy acquired a new site for its training operations. The company was able to find a small unused airport with an updated runway and hangar that could be used to accommodate a flight simulator, small aircraft, and classrooms. The location was ideal as it was close to the city center with a large population base from which to attract students. Carla Vista paid $6.50 million to acquire the site. Prior to providing financing for the purchase, the bank required that an appraisal be completed of the property. The evaluation appraisal report came back with the following estimated market values: land $3,551,670, building $2,430,090, and land improvements $249,240. Carla Vista management explained, to the bank's satisfaction, that it paid the $269,000 premium because of the property's proximity to the city center and access to a large population base from which to draw students. (a1) Allocate the $6.50-million purchase price to the land, building, and land improvements.
Using the z table, find the critical value (or values) for an α = 0.024 in a left-tailed test. QUESTION 2 A recent survey indicated that the average amount spent for breakfast by business managers was $7.58 with a standard deviation of $0.42. It was felt that breakfasts on the West Coast were higher than $7.58. A sample of 81 business managers on the West Coast had an average breakfast cost of $7.65. At α = 0.05, what is the critical-z value? QUESTION 3 The Eagle Ridge Contractors Association claims the average price of a home in their subdivision is $125,150 with a standard deviation of $7,350. A sample of 36 homes for sale in this subdivision had an average selling price of $123,550. The Eagle Ridge Home Owners Association is interested in knowing if the costs of homes for sale in this subdivision are actually lower than claimed? At α = 0.01, what is the z-test value?
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