The Sequence of Adjustments to the Transaction Price of a Comparable

question 18

Multiple Choice

The sequence of adjustments to the transaction price of a comparable property would make no difference if all adjustments were dollar adjustments. However, if percentage adjustments are involved then the sequence does matter. In making adjustments to a comparable property to arrive at a final adjusted sales price, the proper sequence for the following adjustments would be:

• A) Financing terms, market conditions, location.
• B) Location, market conditions, financing terms.
• C) Market conditions, location, financing terms.
• D) Location, financing terms, market conditions.

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Definitions:

Laffer Curve

A representation of the relationship between tax rates and the amount of tax revenue collected by governments, suggesting an optimal tax rate that maximizes revenue without deterring economic activity.

Tax Rates

The percentage at which an individual or corporation is taxed by the government on their income or profits.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.

Buyers of Coffee

Individuals or entities that purchase coffee for consumption, resale, or further processing.