What is the management fee as a percentage of total revenue for a 275-room hotel located in the northwest, if the property recorded an occupancy percentage of 67.3% and an average room rate of $110.86? the hotel had a room revenue to total revenue ratio of 65.1% and a GOP of 29.3% of total revenue.
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- What is the management fee as a percentage of total revenue for a 275-room hotel located in the northwest, if the property recorded an occupancy percentage of 67.3% and an average room rate of $110.86? the hotel had a room revenue to total revenue ratio of 65.1% and a GOP of 29.3% of total revenue. The management fee contract stipulated that the hotel management company would receive 1% of total revenue and 9% of GOP.
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- A company rents a building with a total of 80,000 square feet, which are evenly divided between two floors. The total monthly rent for the building is $75,000. The company allocates $50,000 of total rent expense to the first floor and $25,000 of total rent expense to the second floor. How much of the monthly rental expense should be allocated to a department that occupies 16,000 square feet on the first floor?The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-te construction contracts. On one such contract, Naples expects total revenues of 260,000 and total costs of 200,000. During the first year, Naples incurred costs of 50,000 and billed the customer 30,000 under the contract. At what net amount should Naple's Construction in Progress for this contract be reported at the end of the first year?Castro Construction signs a contract to build a hotel. The construction is scheduled to begin on January 1, 2016 and is estimated to take four years to complete. Castro expects that its total cost for this project would be $108 million and charges its client $151 million in total. Based on the given actual costs incurred, complete the following table showing the percentage of completion, revenue recognized and gross profit for each year. Assume the company uses the percentage-of-completion method for revenue recognition. Do not enter dollar signs or commas in the input boxes. Round all numbers to 1 decimal place. Costs Revenue Percentage of Completion Year Gross Profit* Incurred* Recognized* 2016 $12.96 % $ 2017 $28.08 % 2018 $36.72 2019 $30.24 Total $108.00 % *The numbers are in million dollars. %24 %24 %24 %24 %24 %24 %24 %24
- The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-term construction contracts. On one such contract, Naples expects total revenues of P260,000. During the first year, Naples incurred costs pf P50,000 and billed the customer P30,000 under the contract. At what net amount should Naples Construction in Progress for this contract be reported at the end of the first year? a. P 35,000 b. 65,000A builder enters into a contract with a customer to redesign and update an office buidling for an agreed upon contract price of $2,400,000 and construction is estimated to take three years at a total estimated cost of $2,000,000. Assuming costs may fluctuate over the 3-year construction period. Which statement is most accurate regarding revenue recognition for this contract? The builder should recognize revenue over time using the cost-to-cost (percentage of completion) method. The builder should wait to recognize revenue until the full construction is complete at the end of the three year period. The builder should recognize recognize revenue across the three year construction period as they collect cash payments. The builder should recognize all revenue for the contract at the start of construction when the contract is initially signed.George Co. enters into a contract to build an apartment for Jungle Co. For a fixed fee of P20,000,000. At contract inception, George Co. assesses its performance obligations in the contract and concludes that it has a single performance obligation that is satisfied over time. George Co. determines that the measure of progress that best depicts its performance in the contract is input method based on costs incurred. George estimates that the total contract costs would amount to P16,000.000 over the construction period. George incurs contract costs of P2,000,000 during the year. How much revenue is recognized for the year?
- A 24 unit apartment complex has gross potential rent of $228,000. Assume that the vacancy rate is 5%. Other income is $10,000 - it is not affected by the vacancy rate. Expenses are as follows: Mgmt fee: 6% of total revenues Insurance & Taxes: $49,796 Salaries & Personnel: $55,592 Maintenance & Repairs: $31,476 Utilities: $21,680 What is the Net Operating Income for the property? Note: All numbers are on an annual basis.A company rents a small building with 10,000 square feet of space for $100,000 per year. The rent is allocated to the company's three departments on the basis of the value of the space occupied by each. Department 1 occupies 1,500 square feet of ground-floor space, Department 2 occupies 3,500 square feet of ground-floor space, and Department 3 occupies 5,000 square feet of second-floor space. If rent for comparable floor space in the neighborhood averages $15.00 per sq. ft. for ground-floor space and $10 per sq. ft. for second-floor space, what annual rent expense should be charged to each department? Edit Format TableLeo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $66,000 and earn an additional $13,000 if Highgate achieves $130,000 of cost savings. Leo estimates a 70% chance that Highgate will achieve $130,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract? Transaction price for the contract ?
- Assume that AntonTech starts selling TechStop franchises. TrueTech charges. Franchisees an initial fee in exchange for (a) the exclusive right to operate the only TechStop in a particular area for a five-year period, (b) the equipment necessary to distribute and repair AntonTech products, and (c) training services to be provided over a two-year period. Similar equipment and training can be purchased elsewhere. 1. How many performance obligations exist in this contract? a. 0 b. 1 c. 2 d. 3 2. AntonTech should recognize revenue for the right to operate a Techshop? a. No transaction b. No revenue c. Point in time d. Over time 3. AntonTech should recognize revenue for the equipment? a. No transaction b. No revenue c. Point in Time d. Over TimeFranklin Construction entered into a fixed-price contract to build a freeway-connecting ramp for $30 million. Construction costs incurred in the first year were $16 million and estimated remaining costs to complete at the end of the year were $17 million. How much gross profit or loss will Franklin recognize in the first year if it recognizes revenue over time according to percentage of completion? What if instead Franklin recognizes revenue upon contract completion?Tat leases out apartment units along Taft Avenue in Manila. The following are the rental rates for iTaft's rooms:Die quireArea Capacity Monthly rental25 sq. m. 1 P12,00035 Sq. m. 2-3 14,00045 sq. m. 3-4 16,000lTaft leases out 35 units of its 25 square meter rooms, 30 units of its 35 square meter rooms, and 10 units of its 25 square meter rooms.The apartment building sits on a lot that has a zonal value of P2,000,00, and assessed value of P2,200,000. 1. How much is iTaft's Output VAT 2. Assuming iTaft sold the parcel of land where the apartment sits for a consideration of P1,900,000, how much is output VAT from the transaction?