NEW EXAM PREX-1060A MATERIALS & PDF PREX-1060A VERSION

New Exam PREX-1060A Materials & Pdf PREX-1060A Version

New Exam PREX-1060A Materials & Pdf PREX-1060A Version

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Humber College Exam 4: Invigilated Theory Exam Sample Questions (Q23-Q28):

NEW QUESTION # 23
A tenant is renting 4,000 square feet of space in a commercial shopping center under a net lease. The base rent is $20 per square foot per annum, and there is a percentage rent of 5% of gross sales over the base rent. The tenant has annual gross sales of $1,000,000. The annual expenses are $10 per square foot. How much annual base rent does the tenant have to pay?

  • A. $120,000
  • B. $130,000
  • C. $80,000
  • D. $60,000

Answer: C


NEW QUESTION # 24
Asset sale and share sale are two different ways to sell a business. Which statement describes an asset sale?

  • A. The buyer is eligible for tax deductions and benefits by claiming capital cost allowance on depreciable property.
  • B. The buyer replaces the seller as the owner of the corporation.
  • C. The seller benefits from a tax standpoint since any gain to the seller on the sale will be considered under the capital gains tax exemption.
  • D. The buyer assumes all assets and accepts all liabilities of the business.

Answer: A


NEW QUESTION # 25
A seller provides you with architectural drawings of their building. Which statement is NOT correct?

  • A. If changes are made to source documents, they are still valid if you have the original document.
  • B. Architectural drawings are source documents.
  • C. A photocopy of a source document can be used to verify information.
  • D. Other types of source documents include surveys and tax records.

Answer: A


NEW QUESTION # 26
A salesperson is representing a commercial tenant client who is interested in leasing a property for their business. The salesperson and their client are inspecting a property that includes a few accessory buildings.
This is ideal for the tenant, as the accessory buildings can serve as storage for their business. The tenant asks their salesperson to find out the measurements of the accessory buildings. Why is it important for the tenant to know the total area of the accessory buildings included on the property?

  • A. It is important for the tenant to know the total area of the accessory buildings as it will be considered within the tenant's usable area.
  • B. It is important for the tenant to know the total area of the accessory buildings as they will have to share the use of them with other tenants.
  • C. It is important for the tenant to know the total area of the accessory buildings as it will contribute to their rentable area.
  • D. It is important for the tenant to know the total area of the accessory buildings as it will be deducted from their rentable area.

Answer: C


NEW QUESTION # 27
Which statement about an Environmental Site Assessment (ESA) is NOT correct?

  • A. No stipulations exist for the third and final phase of an ESA due to its vast and complex nature.
  • B. An ESA is not required if the buyer is purchasing the industrial property for their own use.
  • C. All new commercial properties must undergo an ESA before construction begins.
  • D. The Environmental Protection Act establishes the procedures and requirements for the first two phases of an ESA.

Answer: B


NEW QUESTION # 28
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