{"id":119111,"date":"2021-01-19T11:26:46","date_gmt":"2021-01-19T11:26:46","guid":{"rendered":"https:\/\/essayparlour.com\/custom-essays\/?p=119111"},"modified":"2021-01-19T11:26:46","modified_gmt":"2021-01-19T11:26:46","slug":"order-the-answer-to-eric-heiden-has-a-house-and-lot-for-sale-for-70000","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/custom-essays\/business-economics-2\/order-the-answer-to-eric-heiden-has-a-house-and-lot-for-sale-for-70000\/","title":{"rendered":"Order the answer to: Eric Heiden has a house and lot for sale for $70,000"},"content":{"rendered":"<table style = 'table-striped table-bordered table-hover' responsive='true'>\n<tr>\n<th>Question<\/th>\n<td>Eric Heiden has a house and lot for sale for $70,000. It is estimated that $10,000 is the value of the land and $60,000 is the value of the house. Bonnie Blair is purchasing the house on January 1 to rent and plans to own the house for 5 years. After 5 years, it is expected that the house and land can be sold on December 31 for $80,000. Total annual expenses (maintenance, property taxes, insurance, etc.) are expected to be $3000 per year. The house would be depreciated by MACRS   using a 27.5-year straight line rate with midmonth convention for rental property. For  , a   of zero was used. Bonnie wants a 15% after-tax rate of return on her investment. You may assume that Bonnie has an incremental income tax rate of 27% in each of the 5 years. Capital gains are taxed at 20%. Determine the following: (a) The annual  . (b) The capital gain (loss) resulting from the sale of the house. (c) The annual rent Bonnie must charge to produce an after-tax rate of return of 15%. (Hint: Write an algebraic equation to solve for rent.)<\/td>\n<\/tr>\n<tr>\n<th>Subject<\/th>\n<td>business-economics<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question<br \/>\nEric Heiden has a house and lot for sale for $70,000. It is estimated that $10,000 is the value of the land and $60,000 is the value of the house. Bonnie Blair is purchasing the house on January 1 to rent and <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-119111","post","type-post","status-publish","format-standard","hentry","category-business-economics-2"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/119111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/comments?post=119111"}],"version-history":[{"count":1,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/119111\/revisions"}],"predecessor-version":[{"id":119112,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/119111\/revisions\/119112"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/media?parent=119111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/categories?post=119111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/tags?post=119111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}