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Posted: June 15th, 2022
A father and son have been farming land owned by the father for the past 12 years.
A father and son have been farming land owned by the father for the past 12 years. Simply previous to his dying, thefather was provided $900,000 for his farm due to its potential use as a shopping mall. The son would liketo proceed to farm the land if it may be included in his father’s property at its present use worth. Further factsare:1.Common annual gross leases from close by farms of comparable acreage are $36,000.2.Common annual state and native actual property taxes on the farm are $four,000.three.The rate of interest for loans from the Federal Land Financial institution is eight p.c.For federal property tax functions, the farm methodology valuation method would lead to a present use worth for thefarm ofA. $600,000B. $300,000C. $500,000D. $400,000Do not simply give me the reply. I do know the reply. Please write down the rationalization and full calculations. Do not simply attempt to earn the quick cash.
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