1. (1)

A property is sold for $5,100,000 with selling costs of 3% of the sales price. The mortgage balance at the time of sale is $3,600,000. The property was purchased 5 years ago for $4,820,000. Annual depreciation allowances of $153,016 have been taken. If the tax rate is 28%, what is the after-tax cash flow from sale of the property?

$1,184,062

$969,840

$1,347,000

$1,097,218

2. (1)

A property is purchase for $15 million. Financing is obtained at a 75% loan-to-value ration with total annual payments of $1,179,000. The property produces an NOI of $1,400,000. What is the equity dividend rate (ratio of first year cash flow to equity)?

5.89%

9.33%

7.86%

8.64%

3. (1)

Which of the following choices represents the main categories of depreciation?

Physical, external, functional

Physical, economic, locational

External, structural, financial

Economic, physical, external

4. (1)

Expenses for a 1,000 square foot office space are $6.00 per square foot. The lease specifies an expense stop of $5.40. What is the total expense paid by the landlord?

$5,400

$6,000

$600

$0

5. (1)

Income after deducting vacancy that is available to pay expenses is referred to as

Potential gross income

Effective gross income

Net operating income

Before tax cash flow

6. (1)

A small office building is purchased of $1,200,000 with a balloon mortgage that is due at the end of year 10. Payments are based on a 25 year amortization period. If one point was charged, what annual amount can be deducted for tax purposes?

$1,200

$480

$0

$800

7. (1)

One of the following is not tax deductible for