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Farah Mazaher
Answers (6)
FM
Answered
A single manager is typically responsible for a given decision from beginning to end.
On Jul 09, 2024
False
FM
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Coco and Delany borrow $110,000 from Employees Credit Union to buy a home. The loan is a fixed-rate mortgage at 3.38 percent with a thirty-year term, subject to an acceleration clause, and secured by the home. When the borrowers have paid off $10,000 of the mortgage-still owing $100,000, plus interest-they stop making payments. Meanwhile, the home's market value declines to $85,000. After six months, the lender decides to take steps to recover the unpaid amount of the loan. What are the lender's options? Which option seems most likely? Why? What steps are involved?
On Jul 06, 2024
The lender's options include forbearance, a workout agreement, a short sale, and foreclosure.
Forbearance is the postponement of part or all of the payments of a loan in danger of foreclosure. This may be based on a borrower's securing a new job, selling the property, or some other factor. A workout agreement is a formal contract between the lender and the borrower to negotiate a payment plan for the amount due on the loan instead of going into foreclosure. A short sale is a sale of property for less than the balance due on a mortgage. A borrower-who typically must show some hardship-sells the property with the lender's consent, and the lender gets the proceeds. Foreclosure is a process that allows a lender to legally repossess and auction off the property that is securing a loan.
In this question, because the borrowers are uncooperative, the most likely option is foreclosure. To accomplish this, the lender must strictly comply with the applicable state statute.
For example, on a judicial foreclosure, a court supervises the process. The lender's first step is to file a notice of default with the appropriate state office. This puts the borrower on notice to pay the loan and cure the default. If this does not occur, the lender gives a notice of sale to the borrower, and usually also posts it on the property, files it with the county, and announces it in a newspaper. The property is then sold at auction on the courthouse steps. If the sale proceeds do not cover the amount of the loan, the lender can ask a court for a deficiency judgment.
The acceleration clause would allow the lender to call the entire loan due. But because the market value of the home has declined, it would be unlikely to bring enough on a foreclosure sale to recover the unpaid amount of the loan, plus the lender's fees and costs. This means that a deficiency judgment would be needed. To accomplish foreclosure, the lender must strictly comply with the applicable state statute.
Forbearance is the postponement of part or all of the payments of a loan in danger of foreclosure. This may be based on a borrower's securing a new job, selling the property, or some other factor. A workout agreement is a formal contract between the lender and the borrower to negotiate a payment plan for the amount due on the loan instead of going into foreclosure. A short sale is a sale of property for less than the balance due on a mortgage. A borrower-who typically must show some hardship-sells the property with the lender's consent, and the lender gets the proceeds. Foreclosure is a process that allows a lender to legally repossess and auction off the property that is securing a loan.
In this question, because the borrowers are uncooperative, the most likely option is foreclosure. To accomplish this, the lender must strictly comply with the applicable state statute.
For example, on a judicial foreclosure, a court supervises the process. The lender's first step is to file a notice of default with the appropriate state office. This puts the borrower on notice to pay the loan and cure the default. If this does not occur, the lender gives a notice of sale to the borrower, and usually also posts it on the property, files it with the county, and announces it in a newspaper. The property is then sold at auction on the courthouse steps. If the sale proceeds do not cover the amount of the loan, the lender can ask a court for a deficiency judgment.
The acceleration clause would allow the lender to call the entire loan due. But because the market value of the home has declined, it would be unlikely to bring enough on a foreclosure sale to recover the unpaid amount of the loan, plus the lender's fees and costs. This means that a deficiency judgment would be needed. To accomplish foreclosure, the lender must strictly comply with the applicable state statute.
FM
Answered
Demetrius had a $4,000 short-term loss and a $3,000 long-term gain from a collectible,a $2,000 gain from Section 1250 unrecaptured property.What is the netting effect of these gains and losses on his 1040?
A) $4,000 short-term loss is offset against the $3,000 collectible first,then the remaining $1,000 against the Section 1250 property,with a $1,000 gain taxed at 25%.
B) The $4,000 short-term loss is allowed to be taken in total as an ordinary loss,and the net long-term gain of $5,000 is added to his 1040 and taxed at 0%,15%,or 20% depending on his regular tax bracket.
C) $2,000 short-term loss is offset against the Section 1250 property first,then the remaining $2,000 against the collectible gain leaving $1,000 taxed at 28%.
D) As each of these gains and losses are taxed at different rates,there is no netting of short-term and long-term gains or losses.
A) $4,000 short-term loss is offset against the $3,000 collectible first,then the remaining $1,000 against the Section 1250 property,with a $1,000 gain taxed at 25%.
B) The $4,000 short-term loss is allowed to be taken in total as an ordinary loss,and the net long-term gain of $5,000 is added to his 1040 and taxed at 0%,15%,or 20% depending on his regular tax bracket.
C) $2,000 short-term loss is offset against the Section 1250 property first,then the remaining $2,000 against the collectible gain leaving $1,000 taxed at 28%.
D) As each of these gains and losses are taxed at different rates,there is no netting of short-term and long-term gains or losses.
On Jun 09, 2024
A
FM
Answered
The FASB has suggested guidelines for developing homogenous classes of assets and liabilities.For assets, this can be accomplished by following guidelines that include
A) reporting assets according to their use outside the activities of the corporation
B) reporting all assets the same regardless of the implications on a company's financial flexibility
C) reporting the valuation of assets at their net realizable value
D) reporting assets at their fair value
A) reporting assets according to their use outside the activities of the corporation
B) reporting all assets the same regardless of the implications on a company's financial flexibility
C) reporting the valuation of assets at their net realizable value
D) reporting assets at their fair value
On Jun 05, 2024
D
FM
Answered
Brandton Corp., a private company with a rigid, hierarchical organizational structure, is looking to fill the position of senior supervisor. Francesca is among the top five applicants being considered for the post. Francesca does not have the expertise necessary for the position, but she comes across as a person who abides by rules and thrives under supervision and directions. This matches the organization's requirements. As a result, Francesca is hired. In the context of basic selection criteria, Brandton Corp. most likely hires Francesca on the basis of _____.
A) fit
B) skill
C) knowledge
D) education
A) fit
B) skill
C) knowledge
D) education
On May 09, 2024
A
FM
Answered
As mediation progresses,mediators often become less active and allow the disputing parties to take on more aggressive roles.
On May 06, 2024
False