In Using Transaction Data to Determine the Current Value of the Subject

question 29

Multiple Choice

In using transaction data to determine the current value of the subject property, it is important to recognize that general market conditions may have changed since a particular transaction occurred. Property A sold 18 months ago for $235,000 and Property B sold 12 months ago for $215,000. If the two properties are priced today at $239,500 and $222,300, respectively, what is the average monthly rate of increase that can be used to adjust comparable prices for changes in market conditions?

• A) 0.09%
• B) 0.17%
• C) 0.19%
• D) 0.32%

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Definitions:

Purchases Journal

A record keeping document where a business records all purchases of merchandise for resale.

Subsidiary Ledger

A detailed ledger containing the details of transactions for a specific account, supplementing the general ledger by providing individual entries.

General Ledger

The comprehensive set of accounts that records all financial transactions of a business.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a series of periods to identify trends and growth patterns.