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  • Solutions To Real Estate Finance

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    Rejesh Melad
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    1. To calculate the selling price needed to give a net of P4,895,000 to the seller after expenses of 6% capital gains tax and 5% commission, the selling price is P5,500,000. 2. To calculate the selling price needed to give an acquisition cost of P6,300,000 after expenses of 30%, the selling price is P9,000,000. 3. To calculate the selling price needed to give a net of P6,500,000 to the owner after expenses of 5% commission, 1.5% capital gains tax, and 1.5% doc stamps, the selling price is P7,428,571.

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    Solutions to Real Estate Finance

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    1. To calculate the selling price needed to give a net of P4,895,000 to the seller after expenses of 6% capital gains tax and 5% commission, the selling price is P5,500,000. 2. To calculate the selling price needed to give an acquisition cost of P6,300,000 after expenses of 30%, the selling price is P9,000,000. 3. To calculate the selling price needed to give a net of P6,500,000 to the owner after expenses of 5% commission, 1.5% capital gains tax, and 1.5% doc stamps, the selling price is P7,428,571.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    18 views1 page

    Solutions To Real Estate Finance

    Uploaded by

    Rejesh Melad
    1. To calculate the selling price needed to give a net of P4,895,000 to the seller after expenses of 6% capital gains tax and 5% commission, the selling price is P5,500,000. 2. To calculate the selling price needed to give an acquisition cost of P6,300,000 after expenses of 30%, the selling price is P9,000,000. 3. To calculate the selling price needed to give a net of P6,500,000 to the owner after expenses of 5% commission, 1.5% capital gains tax, and 1.5% doc stamps, the selling price is P7,428,571.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Assignment:

    1. Solution:
    Expense of seller = 6% (CGT) + 5% (commission) = 11%
    Selling price = Net to Seller/(100% of expenses) = P4,895,000.00 / (100%-11%)
    =4,895,000/0.89 = P 5,500,000.00

    2. Solution

    Selling price = Acquisition Cost / (100%-30%) = 6,300,000.00 / 70% = 9,000,000.00

    3. Given: Net price to owner = P 6,500,000.00


    Commission = 5% of selling price
    Capital Gains Tax = 1.5% of selling price
    Doc stamps = 1.5% of selling price

    SP = 6,500,000 / (100%-5% - 6% -1.5%) = 6,500,000,00 / 0.875


    SP= P 7,428,571.429

    4. Solution
    a) Selling Price = P6, 300,000.00 + 30% (P6, 300.00) = P 8,190,000.00

    b) Selling Price incl. commission


    P8,190,000/(100%-5%) = P8,190,000/95% = P8,621,025.63

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