REAL ESTATE AND CONSTRUCTION in .NET

Maker QR-Code in .NET REAL ESTATE AND CONSTRUCTION
REAL ESTATE AND CONSTRUCTION
QR Code Decoder In Visual Studio .NET
Using Barcode Control SDK for VS .NET Control to generate, create, read, scan barcode image in Visual Studio .NET applications.
Assumptions: Down payment (meets applicable tests) First mortgage note from independent lender at market rate of interest (new, 20 years meets required amortization) Second mortgage notes payable to seller, interest at a market rate is due annually, with principal due at the end of the 25th year (the term exceeds the maximum permitted) Stated selling price Adjustment required in valuation of receivable from buyer: Second mortgage payable to seller Less: present value of 20 years annual interest payments on second mortgage (lowest level of annual payments over customary term of rst mortgage thus 20 years not 25) Adjusted sales value for pro t recognition The sales value as well as pro t is reduced by $30,000 In some situations pro t will be entirely eliminated by this calculation Exhibit 303 Calculation of reduced pro t $100, 000 $ 150, 000 750, 000
Creating QR Code In Visual Studio .NET
Using Barcode creation for .NET Control to generate, create Quick Response Code image in VS .NET applications.
100,000 $1, 000, 000
QR Decoder In .NET Framework
Using Barcode recognizer for Visual Studio .NET Control to read, scan read, scan image in .NET framework applications.
70,000 $
Bar Code Maker In .NET
Using Barcode maker for VS .NET Control to generate, create bar code image in Visual Studio .NET applications.
30,000 970,000
Bar Code Decoder In .NET
Using Barcode scanner for .NET framework Control to read, scan read, scan image in Visual Studio .NET applications.
The cost recovery method is not required if the receivable is subordinate to a previous mortgage on the property existing at the time of sale (iv) Release Provisions Some sales transactions have provisions releasing portions of the property from the liens securing the debt as partial payments are made In this situation, full pro t recognition is acceptable only if the buyer must make, at the time of each release, cumulative payments that are adequate in relation to the sales value of property not released (v) Imputation of Interest Careful attention should be given to the necessity for imputation of interest under Accounting Principles Board (APB) Opinion No 21, Interest on Receivables and Payables, since it could have a signi cant effect on the amount of pro t or loss recognition As stated in the rst paragraph of APB Opinion No 21: The use of an interest rate that varies from prevailing interest rates warrants evaluation of whether the face amount and the stated interest rate of a note or obligation provide reliable evidence for properly recording the exchange and subsequent related interest If imputation of interest is necessary, the mortgage note receivable should be adjusted to its present value by discounting all future payments on the notes using an imputed rate of interest at the prevailing rates available for similar nancing with independent nancial institutions A distinction must be made between rst and second mortgage loans because the appropriate imputed rate for a second mortgage would normally be signi cantly higher than the rate for a rst mortgage loan It may be necessary to obtain independent valuations to assist in the determination of the proper rate (vi) Inadequate Continuing Investment If the criteria for recording a sale have been met but the tests related to the collectibility of the receivable as set forth herein are not met, the accrual method of accounting is not appropriate and the installment or cost recovery method of accounting should be used These methods are discussed in Subsection 302(j) of this chapter (f) SELLER S CONTINUED INVOLVEMENT A seller sometimes continues to be involved over long periods of time with property legally sold This involvement may take many forms such as participation in future pro ts, nancing, management services, development, construction, guarantees, and options to repurchase With respect to pro t recognition when a seller has continued involvement, the two key principles are as follows:
Painting QR Code In C#
Using Barcode encoder for Visual Studio .NET Control to generate, create QR Code ISO/IEC18004 image in .NET framework applications.
302 SALES OF REAL ESTATE
Painting QR Code 2d Barcode In VS .NET
Using Barcode maker for ASP.NET Control to generate, create Denso QR Bar Code image in ASP.NET applications.
30 11
QR Code Printer In Visual Basic .NET
Using Barcode encoder for Visual Studio .NET Control to generate, create Denso QR Bar Code image in VS .NET applications.
1 A sales contract should not be accounted for as a sale if the seller s continued involvement with the property includes the same kinds of risk as does ownership of property 2 Pro t recognition should follow performance and in some cases should be postponed completely until a later date (i) Participation Solely in Future Pro ts A sale of real estate may include or be accompanied by an agreement that provides for the seller to participate in future operating pro ts or residual values As long as the seller has no further obligations or risk of loss, pro t recognition on the sale need not be deferred A receivable from the buyer is permitted if the other tests for pro t recognition are met, but no costs can be deferred (ii) Option or Obligation to Repurchase the Property If the seller has an option or obligation to repurchase property (including a buyer s option to compel the seller to repurchase), a sale cannot be recognized (SFAS No 66, par 26) However, neither a commitment by the seller to assist or use his best efforts (with appropriate compensation) on a resale nor a right of rst refusal based on a bona de offer by a third party would preclude sale recognition The accounting to be followed depends on the repurchase terms EITF Consensus No 86-6 discusses accounting for a sale transaction when antispeculation clauses exist A consensus was reached that the contingent option would not preclude sale recognition if the probability of buyer noncompliance is remote When the seller has an obligation or an option that is reasonably expected to be exercised to repurchase the property at a price higher than the total amount of the payments received and to be received, the transaction is a nancing arrangement and should be accounted for under the nancing method If the option is not reasonably expected to be exercised, the deposit method is appropriate In the case of a repurchase obligation or option at a lower price, the transaction usually is, in substance, a lease or is part lease, part nancing and should be accounted for under the lease method Where an option to repurchase is at a market price to be determined in the future, the transaction should be accounted for under the deposit method or the pro t-sharing method (iii) General Partner in a Limited Partnership with a Signi cant Receivable When the seller is a general partner in a limited partnership and has a signi cant receivable related to the property, the transaction would not qualify as a sale It should usually be accounted for as a pro t-sharing arrangement A signi cant receivable is one that is in excess of 15 percent of the maximum rst lien nancing that could be obtained from an established lending institution for the property sold (iv) Lack of Permanent Financing The buyer s investment in the property cannot be evaluated until adequate permanent nancing at an acceptable cost is available to the buyer If the seller must obtain or provide this nancing, obtaining the nancing is a prerequisite to a sale for accounting purposes Even if not required to do so, the seller may be presumed to have such an obligation if the buyer does not have nancing and the collectibility of the receivable is questionable The deposit method is appropriate if lack of nancing is the only impediment to recording a sale (v) Guaranteed Return of Buyer s Investment SFAS No 66 (par 28) states: If the seller guarantees return of the buyer s investment, the transaction shall be accounted for as a nancing, leasing, or pro t-sharing arrangement Accordingly, if the terms of a transaction are such that the buyer may expect to recover the initial investment through assured cash returns, subsidies, and net tax bene ts, even if the buyer were to default on debt to the seller, the transaction is probably not in substance a sale (vi) Other Guaranteed Returns on Investment Other than Sale-Leaseback When the seller guarantees cash returns on the buyer s investment, the accounting method to be followed depends on whether the guarantee is for an extended or limited period and whether the seller s expected cost of the guarantee is determinable
Encoding Bar Code In Visual Studio .NET
Using Barcode generator for .NET framework Control to generate, create barcode image in .NET framework applications.
30 12
Barcode Drawer In Visual Studio .NET
Using Barcode creation for .NET framework Control to generate, create bar code image in .NET applications.
Creating Code 39 Extended In Visual Studio .NET
Using Barcode creation for Visual Studio .NET Control to generate, create Code 39 image in VS .NET applications.
Barcode Encoder In C#
Using Barcode printer for Visual Studio .NET Control to generate, create bar code image in VS .NET applications.
EAN 13 Recognizer In VS .NET
Using Barcode decoder for .NET Control to read, scan read, scan image in Visual Studio .NET applications.
Code 128C Reader In Visual Studio .NET
Using Barcode reader for .NET Control to read, scan read, scan image in VS .NET applications.
Draw EAN13 In VB.NET
Using Barcode drawer for .NET framework Control to generate, create EAN-13 Supplement 5 image in Visual Studio .NET applications.