Can anyone help me with this accounting question?

On January 1, 2005 Dexter Corporation purchased land with an assessed value of $400,000. In return for the land. Dexter gave the seller a note which requires a payment of $600,000 on january 1, 2008. The seller calculates Dexter's borrowing rate to be 12%

1. calculate the prchase price of the land.
2. Prepate an amortization table for this note.

Answers:
The answer is - Dexter corporation paid 600k - due 1-1-08 for land that is worth 400K on 1-1-05 at a phenomonal rate of 12% - paid monthly/quarterly/yearly?

The cost of the land is the present value - I assume yearly at 12% although that is not clear - of 600,000 (present date being 1/1/05.

The amortization table is a 3 year loan with a total payout of 600,000 in principal plus interest (12%)

The assessed value is irrelevant for the purpose of this question.
OK do your own home work ya lazy - (god I wish we had this web site when I took econ.) - bum get to work and stop lally gagging
We are here for fun not to do homework, SORRY!
You get a A+ for trying to get a answer to your homework, and a D- for content. Now go hit the text books (paper and pen too) use your brain. You will want to know how to figure out this answer in the future.you will not always have someone to bail you out - on a job - when the boss whats stats on a property, etc.

The answers post by the user, for information only, BAnswer.com does not guarantee the right.


More Related Questions and Answers...
  • What are Distressed Properies?
  • How can figure out rent in my area?
  • How sucessful is real estate?
  • Need help with selling mobile home. Not interested in selling the land.?
  • What is the diffrence between?
  • Acomb (at York) a good area to live?
  • I'm looking for a true hard money lender that will lend solely on the properties equity. Can someone refer me?
  • How to safeguard against the bogus Indian real estate brokers/builders?
  • Mortgage Question?